clients that take forever/don't pay you.
- xhavepatiencex
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clients that take forever/don't pay you.
Just recently I am starting to deal with more issues in getting people to pay me. I currently have a client that owes me a rather small sum of money. We finished mixing well over a month ago. I have had very little contact with them since then.
I call today, and the band "leader" proceeds to get rather aggressive with me, while giving me his life sob story about why I have not been paid. He proceeds to accuse me of insulting his integrity. All the while he refuses to give me even a slightly concrete time frame in which I can be paid. I of course did not give them any of the music. So that is not my problem.
What do people do in such situations, and how long is to long to stay somewhat civil while dealing with the person? I am trying to be as nice as I can, but from my vantage point there is no good reason why I have not been paid. Or at least keep in the loop as to why not.
I call today, and the band "leader" proceeds to get rather aggressive with me, while giving me his life sob story about why I have not been paid. He proceeds to accuse me of insulting his integrity. All the while he refuses to give me even a slightly concrete time frame in which I can be paid. I of course did not give them any of the music. So that is not my problem.
What do people do in such situations, and how long is to long to stay somewhat civil while dealing with the person? I am trying to be as nice as I can, but from my vantage point there is no good reason why I have not been paid. Or at least keep in the loop as to why not.
- blackdiscoball
- suffering 'studio suck'
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I make it a habit to not give out final mixes until I have been fully paid, unfortunately the few times I have given them out before I was paid, I was never paid. I don't know how much he owes you but I would caulk it up as a lesson in the school of life and try to keep the client happy, then if they decide to come back, charge them more to make up the lose. If they haven't paid yet they probably won't so you might as well try to keep them on your good side so hopefully they say good things and you get more business, then just don't let it happen again. I know some might say to forget them and not to work with deadbeats again...if you got the client list to do that great, I can't afford it so I try to keep good relations with everyone.
myspace.com/blackdiscoballstudio/
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- zen recordist
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You could probably get away with tacking on a late fee, so long as you give them reasonable notice about when the late fee will become active. I've had to do this with outstanding balances a couple of times. I always send a printed letter via registered mail so that I know they've received it and then stated in the letter that they have until a certain date to pay their balance before they start accumulating a late fee. Giving them 30 or 60 days from the date of the letter is plenty reasonable and make sure to include a statement in the letter saying that if you don't hear from them, they're agreeing to your terms (which is another reason to send the letter Certified Mail). I tend to make the late fee kind of hefty, which usually gets me paid in a timely manor. In reality, I think there's a statutory limit to the amount a late fee can be (something like 25% annually or something), but most people don't know that, see what the potential charges might be, and get off their ass to pay it. I've only had to do this two or three times, but it's ALWAYS worked for me so far.
Chris Garges
Charlotte, NC
Chris Garges
Charlotte, NC
- xhavepatiencex
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I still have the final mixes, I was considering the late fee. The problem is the client is a "friend of a friend" and we know a lot of people mutually. Though I am more concerned with getting paid than how much he likes me, as now I have found through many other people he has a history of being flakey on alot of things outside of money alone.
I have moved in the last 6 months and since then I have had more problems with people and money than I ever have before. I may have to resort to a written agreement so there is some plain terms for everybody to understand.
I have moved in the last 6 months and since then I have had more problems with people and money than I ever have before. I may have to resort to a written agreement so there is some plain terms for everybody to understand.
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- zen recordist
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It's interesting in light of the subject that your screen name is what it is.
heh heh
Anyway, yeah, I think the late fee is the way to go, so long as you're reasonable about it. if this person has a reputation for being flakey about stuff, then you shouldn't have to worry about getting a reputation for being tough about money or anything. I mean, you did the work, so you should be paid for it.
Chris Garges
Charlotte, NC
heh heh
Anyway, yeah, I think the late fee is the way to go, so long as you're reasonable about it. if this person has a reputation for being flakey about stuff, then you shouldn't have to worry about getting a reputation for being tough about money or anything. I mean, you did the work, so you should be paid for it.
Chris Garges
Charlotte, NC
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- xhavepatiencex
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My only hold up with charging a late fee, is beforehand we did not discuss the possibility of a late fee being charged. So as me trying to be a fair person, feels that charging a late fee in this case may not be the right thing to do, despite the fact the client is not doing the right thing.
This only encourages me to type something up to have everyone sign so I run into less problems like this.
This only encourages me to type something up to have everyone sign so I run into less problems like this.
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- re-cappin' neve
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xhavepatiencex wrote:My only hold up with charging a late fee, is beforehand we did not discuss the possibility of a late fee being charged. So as me trying to be a fair person, feels that charging a late fee in this case may not be the right thing to do, despite the fact the client is not doing the right thing.
This only encourages me to type something up to have everyone sign so I run into less problems like this.
Just because you never mentioned a late fee before does not mean it isn't reasonable or fair to mention it now. Just tell the guy, "Look, if I don't get paid IN FULL by (whatever date you choose), then I have to start charging a late fee on top of it."
If he comes back with, "You never mentioned anything about late fees before!" just say, "It's never come up before. All my other clients pay on time!"
Then tell him that after six months, you reserve the right to wipe the hard drive of his files (or reuse his tape).
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cgarges wrote:
CurtZHP wrote:
xhavepatiencex wrote:
Don't conduct your business with an eye toward what people who you aren't doing business with think. If you hear that some mutual friend thinks you're being a jerk, feel free to explain to them how much work you did and how much he owes you. Ask them how long they would wait before they did something like add a late fee. If they say "never" you should ask them to be your collections agent and buy the debt from you at a discount. That will shut them up.
I've seen 1 1/2% a month, or 18% a year so many times that I think it may be a legal limit.In reality, I think there's a statutory limit to the amount a late fee can be (something like 25% annually or something)...
CurtZHP wrote:
+1.If he comes back with, "You never mentioned anything about late fees before!" just say, "It's never come up before. All my other clients pay on time!"
xhavepatiencex wrote:
All of those mutual friends should be just as much of a concern to the leader of this band as they are to you. In truth, he's probably not that worried, hence his reputation as a flake.The problem is the client is a "friend of a friend" and we know a lot of people mutually. Though I am more concerned with getting paid than how much he likes me, as now I have found through many other people he has a history of being flaky on a lot of things outside of money alone.
Don't conduct your business with an eye toward what people who you aren't doing business with think. If you hear that some mutual friend thinks you're being a jerk, feel free to explain to them how much work you did and how much he owes you. Ask them how long they would wait before they did something like add a late fee. If they say "never" you should ask them to be your collections agent and buy the debt from you at a discount. That will shut them up.
- xhavepatiencex
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thank you everyone so much for the input, I will charge a late fee if I do not hear from him again in a reasonable amount of time. This has also inspired me to contact the one person who I gave mixes away to without being paid in full, to see if he would be interested in working something out as well...
You live you learn i guess!
You live you learn i guess!
I noticed when I stopped giving out files/audio CDs until I got paid that I didn't have the issue of late/nonpaying clients.
It cost me return business, but I don't need nonpaying clients. I could sit at home and watch reruns of Rescue Me and make $0 just as easy.
It cost me return business, but I don't need nonpaying clients. I could sit at home and watch reruns of Rescue Me and make $0 just as easy.
Real friends stab you in the front.
Oscar Wilde
Failed audio engineer & pro studio tech turned Component level motherboard repair store in New York
Oscar Wilde
Failed audio engineer & pro studio tech turned Component level motherboard repair store in New York
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I don't think that having your clients sign something will make any difference. Let your clients know that you expect to be paid in full at the end of each session. Tell them that they should not book a session that they're not prepared to pay for. Honestly, if you're talking about amounts that are small enough that you cannot justify taking them to court to collect, then a promise in writing is no better than a spoken promise.
Make EVERYONE pay as they go, unless you're invoicing a label.
Make EVERYONE pay as they go, unless you're invoicing a label.
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- re-cappin' neve
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To be sure, no way of handling this is going to be pleasant. People always want an outcome free of negative vibes, but the only way to get that is for the client to pay on time. The time NOT to be a jerk is way past.
Yes, hitting this guy with a late fee might make you uncomfortable, but in the end you'll have stood up for yourself and hopefully be rid of a customer you didn't really want in the first place.
I can't stand bugging people about money, so I don't blame you.
Yes, hitting this guy with a late fee might make you uncomfortable, but in the end you'll have stood up for yourself and hopefully be rid of a customer you didn't really want in the first place.
I can't stand bugging people about money, so I don't blame you.
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- zen recordist
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That's why you have to give him a reasonable amount of notice. if you didn't discuss terms, then there's no reason you can't start charging a late fee, so long as you give him reasonable notice.xhavepatiencex wrote:My only hold up with charging a late fee, is beforehand we did not discuss the possibility of a late fee being charged.
That sounds about right.Gentleman Jim wrote:I've seen 1 1/2% a month, or 18% a year so many times that I think it may be a legal limit.
Chris Garges
Charlotte, NC
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it is this kind of thinking that get you nowhere.xhavepatiencex wrote:My only hold up with charging a late fee, is beforehand we did not discuss the possibility of a late fee being charged. So as me trying to be a fair person, feels that charging a late fee in this case may not be the right thing to do, despite the fact the client is not doing the right thing.
This only encourages me to type something up to have everyone sign so I run into less problems like this.
The guy is late paying, and the law alllows for late fees to be incurred, as long as they are reasonable.
It is interest not earned on your income that is owed. Try charging your local bank interest rate per month, up to 30% of the total owed.
And stop being nice to douchebags. Douchebags NEED to be put in their place, every time.
Cheers
Howling at the neighbors. Hoping they have more mic cables.
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