Disclaimer: The content of these articles is to be used as a general guide only. Professional advice should be sought before taking any action relating to the points discussed in these articles.

USE THE TELEPHONE WITH CARE
By Jack Renton - author of Enjoy Your Debt Collecting and make friends of your customers 

  I have a friend who had a very good supplier. He was reliable, prompt, and his service could not be faulted. But there was a problem in dealing with him. His staff telephoned five days after the account for the service was overdue. My friend changed his supplier to one who sent a reminder in the mail ten days after it was overdue.
  Why? This is not a mythical case. The staff who telephoned were always very polite, even sometimes helpful. But my friend felt threatened. If the account had been long overdue he may have thought that a telephone call was quite reasonable.
  Some creditors claim that it is possible to issue a gentle reminder on the telephone. I disagree, as my friend did. The person to whom you owe money is actually fronting up to you. You have to talk to them.
  Now the telephone calls after five days did result in payment. And the calls solved another problem for the supplier. They never had to ask him again for money, because he never owed anything. He bought from someone else.
  My friend had a typical tight budget, but he never took more than a matter of days to pay his accounts. Wasn't his business worth keeping? The supplier's staff were doing as they were told. But the boss apparently thought it was worth losing the business.
  What should you be doing? Clearly even a strongly worded sticker causes less angst than the mildest of telephone calls. The correct response is, of course, a very friendly sticker, or the equivalent written communication.
  If you do have to have the money quickly and the account is of sufficient size, why don't you telephone the customer about something else? Better still, get the sales representative to do it. There is always an excuse for sales staff to ring about something else, and ask for the money as an afterthought. This rarely causes offence.
  I have always believed that accounts should be paid quickly. I don't deny your right to want it quickly.
  But don't listen to the alleged experts who say the end always justifies the means. What these people forget is that the whole system of credit is designed to increase sales. If a system is put in place to reduce them, does this make sense?
  Remember always that the credit function is there to make doing business more profitable. If it does not do this, there is something wrong. Just take care next time you pick up that telephone.

This article is reprinted from Rentons' Business Tips No. 2
© Copyright May 1998 ACS