As a managed service provider, you are committed to providing great service to your IT clients.
You have great relationships with many of them, but there are probably a few who make you wonder why you are in this business in the first place.
You know the ones we are talking about. Those customers who are always critical, always demanding, always on your case when they have a problem or think you are doing something wrong.
You do everything you can to make things right, and make them happy, but that can seem like an impossible task.
Then it comes time for those same customers to pay their bill each month, and suddenly, crickets. You send multiple emails, followed by the dreaded “collections” phone call, but you can’t get a response.
You may get paid eventually, but not without putting in a lot of added time and effort on your part.
You probably started your business with the philosophy that a client is a client, and you can’t afford to turn any business away. But eventually, as your business grows, you need to evaluate whether keeping those difficult clients is really worth it.
What are non-paying, or late-paying customers costing your IT business?
First, add up the extra time you spend in trying to collect those late payments. What is that time worth to you in lost man-hours?
Next, figure out how much you are losing each day, week, or month that money remains in rolling A/R, rather than in your bank account.
Once you have had a look at the hard numbers, you may decide that it’s time for those deadbeat customers to “get with the program”, or cut them loose so that you can go after clients that are worth your time.
It is hard to let any IT client go. How can you salvage that relationship?
The easiest solution is to make it impossible for deadbeat IT clients to miss a payment, or pay late, by enrolling them in auto-draft.
Once they sign up, their payments will be automatically transferred to your bank account at the same time each month, without you or your difficult customer having to do anything.
Signing up deadbeat IT clients for auto-drafting, will eliminate the “I didn’t get the invoice” excuse, and the need for you to send out reminder emails or make late-payment collection phone calls.
It is time to get tough.
Tell those deadbeat customers that they no longer have the option to pay any other way. If they balk, then it’s probably time to cut them loose. You will be glad you did.
After all, there are way better clients out there.
IT clients that will be happy to enroll in an auto-draft program because it makes it easier for them to pay. Not to mention the benefits you will enjoy by getting paid on time… every time.