Hi there,
Some window cleaning friends and family of mine have been complaining about how much time/money it costs to collect money from customers.
So I just wanted to ask a few q's to find out others' experiences:
1) How many customers do you have?
2) What % of them are not in and require collecting money?
3) How much MONEY a week do you spend on collecting? (stamps, envelopes, fuel, phone calls)
4) How much TIME a week do you spend on collecting? (writing SAEs, driving round, licking stamps, phoning ahead)
5) If there was a solution that meant you would never/nearly never had to spend time on collections - how much money would you be willing to part with a month for it?
6) Do you think your customers would be happy to spend under £1 on a transaction fee when paying?
7) What are your thoughts on PayPal and bank transfers?
Many thanks!
Tarquin
1) About 240.
2) Between one third and one half not in - but I don't collect.
3) Nothing. Zilch. Nada.
4) As no. 3.
5) Possibly up to £20 a month but as I've got the custies well trained, the only time I would pay anything is if I needed to deposit more than 100 cheques per month (@ 50p per cheque). So far this has never happened.
6) All they need to spend money on is a stamp and envelope and, very rarely, the poundage on a postal order. The more techie ones pay free of charge via BACS transfer from their account to mine.
7) Paypal charge a small fee and you have to pay to withdraw your own money (if under a certain amount). Also, as they are not a properly registered bank, they don't have to comply with certain standards.
SEE:
www.dooyoo.co.uk/bank/paypal-com/1007582/Bank transfers are free and less danger of problems as they are regulated.
I haven't collected money in person for years. I insist that if a customer isn't in, they either send a cheque or do BACS or, for the smaller jobs, I'm prepared to take two payments the next time around.