Custom Order - Customer refusing to pay balance!

[geester]

We have a customer who placed an order for some custom goods (unusable for anyone else), we agreed in accordance with our temrs and conditions that we would deliver the goods and give them 30 days on the balance, with 50% upfront.

The customer placed the custom order and then 2 days into the order, tells us they will be collecting on their own transport to Germany, but will not discuss the final destination!! So we pointed out that the contract was for us to deliver and they said, it's changed! Now our terms and conditions had been supplied to them before they placed the order and received our invoices, which they paid 50%.

Our T&C's state, if we are not deliverying the goods, we require full payment before collection for any custom order. I have tried to speak to them for the past 2 weeks, as the order is complete and ready to ship, however they are refusing to pay the balance. This is a very large cruise line company and the price for the total contract is £25K, we've received £12.5K.

They told us yesterday, that they will apply solicitors to the issue, if we do not release the goods to them. The issue is, if they do not pay the balance we are left with scrap and not knowing the end destination, if anything goes wrong we cannot recover the goods as we will not know where they are.

Any ideas?

 

[Lloyd N8N]

What is the actual issue here? Your client wants 30 days to pay the balance?

Why is there a difference in your terms for delivery or collection - either way, you lose control of the goods.

Can you not negotiate a further 25% payment before release and the remaining 25% upon 30 days?

 

[geester]

They are custom units and our terms states payment in full if collected. Had customers previously order custom products, we make them and then don't get paid, recover of goods is pointless as they are no good to anyone else!

They will not entertain any further payment!

 

[MBE1]

Refuse to release the goods, await payment.

Of course you need to decide whether this will end the possibility of any further potential orders in the future, but also whether your own T+C's actually stand for anything.

 

[The Sheriffs Office]

Are they a safe company to deal with? Have you done your credit checks?

I would be inclined to argue for a further 25% as Lloyd suggests.

If not, supply the goods and if they do not pay the balance then issue proceedings against them.

 

[obscure]

They are custom units and our terms states payment in full if collected. Had customers previously order custom products, we make them and then don't get paid, recover of goods is pointless as they are no good to anyone else!

So what does it matter if you know the final destination or not? You said yourself that the items are custom and as such no use to anyone else/scrap - so why go to the effort of recovering.

Just sue them to recover the rest of the money. I assume you know where their regional/head office is as they are placing the order.

 

[smallclaimsassistance]

Like Lloyd, I am not sure I see the problem. Sure, they are effectively trying to change the terms, but what is the outcome of that? They get the goods and owe you the other 50%. Which is the same outcome if you deliver. You say

This is a very large cruise line company

, so it's not like they can not pay and disappear.

In other words, if you humour them, let them collect (and save yourself the job of delivering, which reduces your cost for this order), they will then pay you? How is that an unacceptable outcome?

I must be missing something?

 

[Carl Mintern]

Put a tracker on the item if your concerns are as described- problem solved