collecting payments

Wimblees@AOL.COM Wimblees@AOL.COM
Wed, 5 Jan 2000 19:57:56 EST


In a message dated 1/5/00 10:41:09 PM !!!First Boot!!!, harlip58@yahoo.com 
writes:

<< I am a piano technician in Great Neck, NY, servicing
 homes, schools, churches and organizations, ie.
 theater groups, arts councils, etc.  When I tune for
 schools, churches or theaters I have to send or leave
 bills for services performed and wait for payment.  I
 am considering printing payment terms on my bills,
 specifying a time frame and a penalty if that time
 frame is not met.  What are generally accepted terms
 in the piano service business? >>


18% per year, prorated  at 1.5% per month. Or you can charge a late payment 
fee of $5.00 if payment is sent after 30 days. 

I once gave a $5.00 discount to those who sent in the payment within 30 days, 
reasoning that if I gave an incentive for sending in payment on time, I would 
get the money sooner. But then I got to thinking. Why give someone a $5 
discount for holding on to your money for 30 days, when people who pay on the 
spot don't get a discount? 

Although it is not a bad idea to put a late fee charge on the bill, what are 
you going to do if they don't pay it. On a $70 tuning 1.5% per month is 
$1.05. That is not worth going to small claims court. You would be much 
better off giving them a call, or sending them a reminder note after 30 days. 

If a school or church is in the habit of sending checks 60 or 90 days late, 
tell them you're too busy, or that you need a check before you go and tune. 
Don't tell them to have a check waiting. What are you going to do if they 
don't have one when you show up? 

If you know in advance you have to wait for a check, then you can budget 
accordingly. If you get to a point where you have too many open accounts, 
don't accept the tuning appointments.

Just my 2 cents worth

Wim


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