Invoice Issues with a customer

**dharrison** · #1 (**permalink**) 04-19-2006, 05:16 PM

Hi

I really am confused on this one and badly need some help.

Some time ago I started doing some work for a customer of mine. It was one of these jobs that had to be done "like yesterday" and they seemed to have an issue with the price as they kept checking up on me and comparing my service to others.

Anyway, eventually they discontinued as I wasn't quick enough for them. They agreed to pay what they owed me.

The thing is, since then I have heard nothing. They have moved hosting and got a new temporary page so it is obvious they have felt the need not to bother paying me. They didn't get round to signing my terms and conditions either.

So what do I do? Do I say "fair is fair" and walk off and count my losses (I can still use the leftover hosting account)? Or do I fight them to the hills and get whats owing to me even if it don't apply to them now. Or do I compromise?

The problem is compromise would be hard because this customer doesn't respond to me now and I really am annoyed and at a dilemma. I have learned a very hard lesson but I still feel so foolish.

Any help would be gratefully received (or headache tablets).

Many thanks

Debbie

Easywebdev · #2 (**permalink**) 04-19-2006, 06:50 PM

Send out the invoice.
You are in business and deserve to be paid for any work you do. Your time spent on their work is time you could have spent on someone elses and been paid for it.

If a plumber came to your house and you didnt like the look of him, maybe he smelled, dawdled and took all day to do the job you would decide not to use him for future plumbing work but you would still pay for the work done.

Web development is like any other business. At the end of the day it is business. Be firm and get what is owed to you.

Tubby · #3 (**permalink**) 04-19-2006, 07:26 PM

Debbie, Send them a final notice, and add a little note at the bottom saying that any upaid accounts are refered to a collection agency, and please be prompt to avoid risking their credit rating.

do a quick serch on the net for a local collection agency. and name the one you intend to use.

Do not take crap from non payers Debbie, Do not feel guilty. Go get them! There is a whole community out their that play on sensitive business people.

Collection agencies have no heart whatsoever, let your debtors know you feel you have no option but to pass the debt along..

ADAM Web Design · #4 (**permalink**) 04-20-2006, 01:09 AM

Debbie, I'm going to PM you about something on this. Do with it as you wish.

**dharrison** · #5 (**permalink**) 04-20-2006, 10:44 AM

Thanks for all your comments (PM and all).

Looking this morning, it turns out that these people (they certainly are no customer of mine) have abondoned their hosting and where the hosting company can credit most of what I paid, they cannot credit me fully.

Should I keep the invoice how it is or adjust it just to cover my loss.

Sorry to be a pain (and a bit of a pleb I know). My poor other customers from now on: Even the customers I've had for years are being nagged every 5 minutes to send their signed copy of the agreement (well not quite that extent).

Oh well, they say the best lessons are learned the hard way.

Any advice would again be very much appreciated.

Best regards

Tubby · #6 (**permalink**) 04-21-2006, 03:27 AM

'Should I keep the invoice how it is or adjust it just to cover my loss.'

Debbie, you do not know what your loss is yet. recovering debts can incur expenses, negotiating refunds takes time and effort.

On the board above my computer I have three old chess clocks (I used to play) these clocks have two dials and if you press a button on the top, the adjacent clock starts ticking. I stick little bits of paper on them. This gives me a simple way to keep an eye on what I spend time doing.
for example this week I spent 17 minutes on my new directory website.
You might be well suprised how many minutes a day you dedicate to the matter of collecting this debt.

Did you know that a large section of business charge 1% per month on overdue accounts.

I always found it easier to have all the basic contract details printed in small print on the back of a quotation, a deposit is fair enough proof of acceptance of conditions. . Although I have never tested it legally. I like a deposit as proof of acceptance. I do not mind if it is merely a few dollars, I use the deposit as firm proof of acceptance. If I give anyone a discount the Invoice always goes out with the full price and I stamp it
( DISCOUNT OF $96 IF PAID BY 30th APRIL )

I like to keep Terms and conditions and price, up front and proudly visible.

I do not sell web design Debbie, running any business has its own particular problems, but there are a good few business practises that cover all.

carju1 · #7 (**permalink**) 04-21-2006, 12:23 PM

Debbie,

One advantage you have is that the UK's small claims court system (up to £5000)is fairly easy to use and I think a claim costs from £30 to about £150 to pursue through depending upon how much you are trying to recover.

Most of the forms and info can be found here http://www.hmcourts-service.gov.uk/i...aims/index.htm . There is even a system of doing all the process on-line https://www.moneyclaim.gov.uk/csmco2/index.jsp

The BBC have some over view info at http://www.bbc.co.uk/crime/law/smallclaimscourt.shtml the citisens advice bureau will always help and advise http://www.citizensadvice.org.uk.

There are also a site selling a small claims pack for £15 http://www.lawpack.co.uk/small_claim...t=small_claims on-line. I have no idea if they are any good but.....

Hope it helps and if you've done the work don't let the blighters get away without paying.

Julian

dburdon · #8 (**permalink**) 04-21-2006, 08:37 PM

Debbie,

extracting payment from customers is one of the hazards of UK business.

Try the small claims approach. Most decent companies are terrified by the thought of such action.

Maybe we should compare notes.

Tubby · #9 (**permalink**) 04-22-2006, 04:30 AM

Small claims are fine. . but having been to two, it should be noted that there is a legal officer present and two sides present the case as they see it and a decision is made.

The legal person thinks in legal terms, If you do not have any record of an agreement, in some form or other he will simply accept that there is no agreement in law.

It then a case of, he said - I said.

I think Debbie said in an earlier post that the agreement was not accomplished. I think attending a small claims tribunal with no "physical evidence" could be embarrasing.

Do UK small claims, handle matters like this ?
I thought it was a non payment matter.