Customer not paid invoice in full

[Tigris]

Hi guys,

I've had a customer not pay an invoice in full. They have missed £40 of the total invoice.

As a business owner would you let this slip as I presume the cost to go down the legal route just wouldn't be worth it?

 

[simon field]

No, don’t let it slip.

But it’s a bit early to be considering legal action. Why do they say they’ve not paid the £40?

 

[Newchodge]

Hi guys,

I've had a customer not pay an invoice in full. They have missed £40 of the total invoice.

As a business owner would you let this slip as I presume the cost to go down the legal route just wouldn't be worth it?

How much is the total invoice? Is the customer a business? b Why did they not pay in full?

 

[Tigris]

No, don’t let it slip.

But it’s a bit early to be considering legal action. Why do they say they’ve not paid the £40?

I assessed a job and quoted. They went elsewhere for parts and there was extra work to be done on-site as well as at my workshop due to this.

The quote went out of the window as the client bought the £350 part themselves. I quoted for a like for like part so it would have been a straight swap and not taken much time. They bought something slightly different so instead of £40 labour it was £80. They paid for my time as if it was with me providing the part also (which would have been a much quicker process)

 

[simon field]

---

I assessed a job and quoted. They went elsewhere for parts and there was extra work to be done on-site as well as at my workshop due to this.

The quote went out of the window as the client bought the £350 part themselves. I quoted for a like for like part so it would have been a straight swap and not taken much time. They bought something slightly different so instead of £40 labour it was £80. They paid for my time as if it was with me providing the part also (which would have been a much quicker process)

Provided you have all this in writing then I’d issue a polite reminder first, attaching your correspondence and quote.

See what happens before issuing a LBA.

 

[Newchodge]

I assessed a job and quoted. They went elsewhere for parts and there was extra work to be done on-site as well as at my workshop due to this.

The quote went out of the window as the client bought the £350 part themselves. I quoted for a like for like part so it would have been a straight swap and not taken much time. They bought something slightly different so instead of £40 labour it was £80. They paid for my time as if it was with me providing the part also (which would have been a much quicker process)

When they told you they were supplying the parts did yiu tell them the quote was no longer valid and issue a new one?

 

[estwig]

I'd squeeze 'em for a bit, just out of principle, send invoices, reminders, emails, texts, etc, make their life difficult.

For £40.00, at some point I'd get bored, drop it and move on.

 

[HFE Signs]

What did they say their reason was for not paying the full value? Surly you explained the extra £40 in labour before doing the job?

 

[Scalloway]

I'd squeeze 'em for a bit, just out of principle, send invoices, reminders, emails, texts, etc, make their life difficult.

For £40.00, at some point I'd get bored, drop it and move on.

I would say the same. It could be as simple as somebody entering a wrong figure.

 

[Christopher1]

Hi guys,

I've had a customer not pay an invoice in full. They have missed £40 of the total invoice.

As a business owner would you let this slip as I presume the cost to go down the legal route just wouldn't be worth

We had this exact same issue recently - my company takes a 50% deposit and after the work has been completed, we allow a 14 day period to satisfy the remaining amount.

After having an issues with payment in the past I've implemented a £25 weekly surcharge if the payment period is missed. unless, we're giving a reason for the missed payment or there is a dispute. we're a buisness but it's a tough time for everybody. I'm always happy to work with my customers to be honest.

I would personally issue a payment notice and contact your client to gain some insight on why the payment was not made in full.

I hope is helpful ?

 

[tony84]

Did you not know the part was different before fitting it?

If you told them before starting that it might take longer due to the part being slightly different, I would chase a little bit for it (but I would also be prepared to write it off).

If you did not tell them before fitting it, I would write it off. One because you cant prove what was and was not agreed but secondly and more importantly it could look like you are trying to rinse someone of their money and the bad mouthing/review that may bring is not really worth it.

 

[japancool]

Surely, surely, the first step before anything else is a polite communication with the customer to say the payment is £40 short?

 

[Tigris]

Surely, surely, the first step before anything else is a polite communication with the customer to say the payment is £40 short?

I have done that and made sure they were happy with the product I setup for them and they were. They said they would send payment for the missing amount.

Might drop it and move on. They were funny from day one and wanted the job doing within 24 hours of communicating with me just before Christmas eve as well.

 

[Paul Kelly ICHYB]

Are they/could they be a repeat customer?

If no, forget about it.

If yes,

No, don’t let it slip.

Sent reminders and chase, but don't bust a gut or stress about it.

 

[estwig]

I have done that and made sure they were happy with the product I setup for them and they were. They said they would send payment for the missing amount.

Might drop it and move on. They were funny from day one and wanted the job doing within 24 hours of communicating with me just before Christmas eve as well.

Don't be scared to ask for your money, you might be £40.00 up for a 2 minute email.

If you don't like them drop 'em afterwards, suddenly very busy, just landed a big commercial contract, go away and never darken my door again!

 

[Onthebrightside]

Surely, surely, the first step before anything else is a polite communication with the customer to say the payment is £40 short?

Totally agree, we've had this with clients previously and they just really didn't understand they'd calculated it wrong. They immediately paid the £40.00. We'd phrased it asking them if there was 'something they weren't happy with?' and they normally come back with a payment straight away with an apology for misunderstanding.

It's nice to be nice and people appreciate that. Just give them a nudge.

 

[Casually made]

The quote went out of the window as the client bought the £350 part themselves. I quoted for a like for like part so it would have been a straight swap and not taken much time. They bought something slightly different so instead of £40 labour it was £80. They paid for my time as if it was with me providing the part also (which would have been a much quicker process)

Sounds to me like there's been some confusion over the labour side

If you initially quoted 40 quid ( which i am assuming was an hour labour) and then later decided you needed two hours for whatever reason this would have needed to have been clearly outlined with customer

They probably think you have charged two hours by mistake and paid one hour

It sounds like a bit of a mess and personally i would just let it go

 

[Tigris]

Resent the invoice and had a phone chat in which they agreed to pay but one week later still no payment.

I will let it go and avoid in the future.

I had there hardware here and quoted them then they decided to buy a whole new device from somewhere else in which then I had to setup for them and I even took it back out on site which was 1 hour of my time without the work done in my work shop. Ahh well, live and learn

 

[MBE2017]

If there is ever a next time, I would be asking for payment up front, plus adding the missing amount on top.

 

[Casually made]

Resent the invoice and had a phone chat in which they agreed to pay but one week later still no payment.

I will let it go and avoid in the future.

I had there hardware here and quoted them then they decided to buy a whole new device from somewhere else in which then I had to setup for them and I even took it back out on site which was 1 hour of my time without the work done in my work shop. Ahh well, live and learn

Why agree to do the donkey work if there was next to no payout ?

This scenario is common in garages someone takes their car there , garage tells them they need XYZ + labour

Smarty pants customer runs off to ebay orders parts himself at cost rocks back up to garage and asks them to fit said part most at this stage will tell him to do one