Make Your Customers Happy–Make Them Pay!

Win-win In collections, it’s imperative to set up win-win negotiations in order to maintain the goodwill of the customer. For example, here’s a story of two friends who had been in business together as equal partners for many years. When one made a decision to retire, he didn’t want to jeopardize their friendship by fighting over the business. As a solution, one partner agreed to set the selling price of the company and the other agreed to set the terms of the sale. Then, each drew straws to determine who would be the buyer and who would be the seller.

This is a perfect example of a win-win negotiation. Since neither partner knew which one would end up the owner, each tried to structure as fair a deal as possible. Conse­quently, a very large business deal was consummated and the two longtime partners remained friends. Continue reading

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Treat Money to Be Collected as if It Were Your Own

iStock_000054864024_SmallIn the workplace, we usually find employees who are trying to collect money for someone else—A.K.A their employers.  To understand the importance of establishing a sense of urgency when collecting, we use the following technique in our “Championship Collections” seminars.  Continue reading

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How to Run an Exceptional Business

Jumping Through HoopsYears ago I attended a comprehensive program for owners of small companies at the Graduate School of Business at Harvard University. The professor warned the class against becoming “hoop jumpers.” Hoop jumpers, he explained, are companies that offer a product or service similar to those being offered by their competitors. Essentially, hoop jumpers are selling a commodity. Continue reading

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The Power of an Assumptive Attitude

People often get what they expect. For instance, if you’re expecting to fail, you’re more likely to fail. If you think positively, you’re more likely to succeed. Attitude is everything—especially in collections.

Years ago we hired an employee for a collection position who did not have any collection experience. After she had completed a week of training, the collection manager told her to pick up a stack of delin­quent accounts and start calling. (This was in the year B.C. – “before computers” – when all accounts were col­lected on ledger cards.)  Continue reading

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How Your Company Can Avoid Bad Debts: Take This Survey

Company SurveyCollection departments are not the sole cause of bad debts – bad management causes bad debt. For this reason, it’s a good idea to conduct a company survey to determine where your business went wrong.

To conduct a company survey, you must examine each area of your business: Continue reading

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