The Edison phonograph monthly (Jan-Dec 1914)

12 EDISON PHONOGRAPH MONTHLY, FEBRUARY, 1914 SOLVING THE PROBLEM OF INSTALMENT COLLECTION THE INTERESTING PLAN FOLLOWED BY A CANADIAN PHONOGRAPH MAN WHOSE COLLECTIONS AVERAGE NINETY PER CENT.— USING THE CARD SYSTEM TO CHECK UP ON CUSTOMERS. WITH the large proportion of business done by talking machine dealers on the instalment basis, the question of collections is one, the importance of which cannot be overrated. The remarks which follow have been compiled by an experienced collector, whose collections average over 90 per cent, of all accounts each month. Instalment Collections We notify all customers in advance, of the instalment due, and if the instalment is not paid at that time follow up our notice with a second and plainer letter within a week or two weeks from the due date. Then, if the second notice has not the desired effect, follow it up again in a similar length of time with a stronger letter. The advance notice, however, is the important one, and the one that has the most effect when sent regularly. If the customer happens to live in the country or some distance from the post-office, it might be well to let a longer time elapse between notices, as your letters may not be received as promptly as they would be where they have a delivery, or where the post-office is handy. When a customer replies, making an indefinite promise, exact a definite date. Look for payment at that time and let the customer understand that you are expecting it exactly as promised. Customers will at times promise payments "shortly" or "as soon as possible," which might mean any time, and if you accept a promise like this you are then unable to again ask for payment for probably a longer period than would be necessary if the exact date were set. A great majority of people, that is, even those who are considered good pays, are likely to overlook an instalment, or to allow five or six weeks to elapse between payments, which of course, means that several instalments are skipped within a year's time, whereas, if they are reminded regularly they cannot overlook the date. They also know that their account is being watched carefully, it naturally having a tendency to make them more prompt and careful. Never grant an extension of time, or make any concessions in the terms of the contract without first ascertaining the why and the wherefore as in a great many cases the time is not really required, and besides, if requests of this kind are granted promiscuously, the customer is more likely to make a similar request again in a short time, thinking that it makes little or no difference to you, or thinking that all they have to do is to ask for the additional time, when it will be granted. If you consider, however, that an extension is really required, and you feel that the customer is deserving of leniency, do not grant the same begrudgingly, as you would often hurt the feelings of your customer, and would, in some cases, stand in the way of their recommending new business, and would defeat your very object in granting it — cementing his good will. If a customer offers a smaller amount than is due, without making any comments, draw his attention to the fact, that the payment is short, asking for the full amount, or asking that the shortage be made up within a certain length of time. If this course is not pursued, customers will pay partial instalments, and if nothing is said at the time, they naturally think you are satisfied and will most likely drift into the habit of making short payments each month or quarter, as the case may be. This, of course, you wish to avoid. System We have found one of the best plans of keeping track of an instalment account to be the card system and a diary or ticker, that is, having all particulars t>f the sale on the front of the card, in fact, have it practically the same as the page of your ledger, and then arrange these cards alphabetically, entering the names in your diary several days before the due date, or several days before you wish it to next come before your notice. When all your accounts are arranged in this system, take each day's cards, giving them the necessary attention, enter the names forward on the dates that you next wish them to come under your notice. By keeping the payments posted regularly, and noting all memoranda, such as letters sent, extensions granted or promises made, on the back of the card, you have at all times a true history of the account from the start. Customers are likely to request a month's extension on the strength of a promise to catch up the following month or at a future date, and if you have not a card system in vogue for keeping track of such promises, they are liable to be overlooked and the customers will, in many cases, when not reminded, just pay the current monthly or quarterly instalment without making an attempt to include the back payments as promised. Courtesy Always greet your customers in a friendly manner, no matter how bad a delinquent he or she may be, or even though you know that you intend talking pretty plainly to the extent of threatening a suit or enforcing the lien. Let them also leave with a pleasant good-bye, no matter how you have to scold, as your scolding then has a better effect and more weight, they understanding that it is entirely business and not in any way personal animosity. Of course no set rules can be made governing all cases, as many times an individual case requires special leniency, or again it may be that it would not be policy to be as liberal with some parties as you would ordinarily. The writer feels that if the above hints are acted upon that instalment accounts as a whole can be kept up to as high a standard as possible, but, of course, it is impossible to collect one hundred per cent, of the amount due each month at all times. [From the Music Trade Review.]