Sunday, 20 March 2011
Deanem Collections: In business why we should cull dead wood be it non...
Deanem Collections: In business why we should cull dead wood be it non...: "I am grateful to both Jeremy Silverstone of Purple Marketing and Peter Sellers and Hal Ashby for the inspiration for this week’s blog. Jere..."
In business why we should cull dead wood be it non-performing customers or a non-perfoming website.
I am grateful to both Jeremy Silverstone of Purple Marketing and Peter Sellers and Hal Ashby for the inspiration for this week’s blog.
Jeremy and I were talking during breakfast at Key Connectors networking in Barnet last week, about the fact that most companies generally do not review their website more than once a year and wonder why they don’t have many hits. In fact there is one company I used to work for who is a prime example of this. If I recall it correctly they spent around £600 - £1000 developing their website, the price included the capacity to carry live streaming etc and at the time it was a very good and innovative website. They had embraced the modern age and very quickly they saw an immediate return for their investment. The number of hits on their website was amazing, they received enquiries and instructions from both the UK and abroad. Due to the stat counter they had installed on the website they knew that this increased level of work could be attributed to their new website.
Unfortunately, they didn’t listen to advice and 6 years down the road the website has not been changed or updated and is now looking very dated. I can only assume that the level of enquiries they receive has dropped to a mere trickle.
I’m sure you’re asking yourself “What has this got to do with Peter Sellers or Hal Ashby?” Well Jeremy reminded me that one of the great films of the later part of the 1970’s was Being There and how the film’s message should be adopted by all business owners.
For those who haven’t seen the film, Peter Sellers plays a middle-aged gardener who lives in the townhouse of a wealthy man in Washington. Chance appears to be a simple man with simple tastes and is perfectly happy living with his employer as long as he has his garden, television and food on the table. When the wealthy man dies he is forced to leave by the executors and leaves with only the clothes given to him by his late employer, a homburg hat, umbrella and a television remote and starts to walk aimlessly through Washington.
Due to a random act of misfortune he is knocked down by a car being driven by a wealthy businessman who feels so guilty that he takes Chance home with him to recover. During dinner he is asked his name and even though he says he is called Chance the Gardener, the other dinners think he says Chancy Gardener. When Chance is asked his opinion of the economic crisis that was then effecting America and the rest of the Western world and when he answered he used the only knowledge he had and that was the knowledge that came from gardening.
He explained that everything in nature is a cycle, that while in spring and summer there is growth, but in fall & winter things die down. It is in winter and early spring that we should cut back the dead wood to allow for the new growth to come through. His simplistic answers were interpreted as statements of deep wisdom and knowledge regarding business matters and the current state of the economy. The jaded guests and those he meets along the way declare Chance to be a genius.
While Being There is a work of fiction the sentiment is very true today. We are currently coming towards the end of a very hard financial winter and if we want our business to start to grow we have to start making some very hard decisions.
Start by looking at your website how long since you’ve received an enquiry, is it looking tired and old, can you almost see cobwebs. If the answer is yes to any of these questions then you need to invest some time and money and refresh it. Remember your website is your shop window and you are judged by it and like a garden it need constant upkeep to ensure that it offers the visitor a splendid impression of your business.
When you’ve done that review your customer base, especially the bottom performing 20%. You’ll have to decide if the reason that they are underperforming is due to your lack of communication. If it is, make some time and phone them and if possible arrange to visit them and find out why they are not your best customer. If after that they're still at the bottom of your chart, divorce them as they aren’t Roses but weeds that could be choking the life out of your business.
If you would like to know more about David or Deanem Collections please do not hesitate to visit www.deanemcollections.co.uk
Jeremy and I were talking during breakfast at Key Connectors networking in Barnet last week, about the fact that most companies generally do not review their website more than once a year and wonder why they don’t have many hits. In fact there is one company I used to work for who is a prime example of this. If I recall it correctly they spent around £600 - £1000 developing their website, the price included the capacity to carry live streaming etc and at the time it was a very good and innovative website. They had embraced the modern age and very quickly they saw an immediate return for their investment. The number of hits on their website was amazing, they received enquiries and instructions from both the UK and abroad. Due to the stat counter they had installed on the website they knew that this increased level of work could be attributed to their new website.
Unfortunately, they didn’t listen to advice and 6 years down the road the website has not been changed or updated and is now looking very dated. I can only assume that the level of enquiries they receive has dropped to a mere trickle.
I’m sure you’re asking yourself “What has this got to do with Peter Sellers or Hal Ashby?” Well Jeremy reminded me that one of the great films of the later part of the 1970’s was Being There and how the film’s message should be adopted by all business owners.
For those who haven’t seen the film, Peter Sellers plays a middle-aged gardener who lives in the townhouse of a wealthy man in Washington. Chance appears to be a simple man with simple tastes and is perfectly happy living with his employer as long as he has his garden, television and food on the table. When the wealthy man dies he is forced to leave by the executors and leaves with only the clothes given to him by his late employer, a homburg hat, umbrella and a television remote and starts to walk aimlessly through Washington.
Due to a random act of misfortune he is knocked down by a car being driven by a wealthy businessman who feels so guilty that he takes Chance home with him to recover. During dinner he is asked his name and even though he says he is called Chance the Gardener, the other dinners think he says Chancy Gardener. When Chance is asked his opinion of the economic crisis that was then effecting America and the rest of the Western world and when he answered he used the only knowledge he had and that was the knowledge that came from gardening.
He explained that everything in nature is a cycle, that while in spring and summer there is growth, but in fall & winter things die down. It is in winter and early spring that we should cut back the dead wood to allow for the new growth to come through. His simplistic answers were interpreted as statements of deep wisdom and knowledge regarding business matters and the current state of the economy. The jaded guests and those he meets along the way declare Chance to be a genius.
While Being There is a work of fiction the sentiment is very true today. We are currently coming towards the end of a very hard financial winter and if we want our business to start to grow we have to start making some very hard decisions.
Start by looking at your website how long since you’ve received an enquiry, is it looking tired and old, can you almost see cobwebs. If the answer is yes to any of these questions then you need to invest some time and money and refresh it. Remember your website is your shop window and you are judged by it and like a garden it need constant upkeep to ensure that it offers the visitor a splendid impression of your business.
When you’ve done that review your customer base, especially the bottom performing 20%. You’ll have to decide if the reason that they are underperforming is due to your lack of communication. If it is, make some time and phone them and if possible arrange to visit them and find out why they are not your best customer. If after that they're still at the bottom of your chart, divorce them as they aren’t Roses but weeds that could be choking the life out of your business.
If you would like to know more about David or Deanem Collections please do not hesitate to visit www.deanemcollections.co.uk
Saturday, 12 March 2011
Deanem Collections: How to raise your prices without upsetting your cu...
Deanem Collections: How to raise your prices without upsetting your cu...: "I’m grateful to Robert Craven of The Directors Centre and Dale Carnegie for the inspiration for this blog. One question I am regularly ask..."
How to raise your prices without upsetting your customers.
I’m grateful to Robert Craven of The Directors Centre and Dale Carnegie for the inspiration for this blog.
One question I am regularly asked when I’m speaking at events or running credit control workshops is “How can I increase my profit margin without upsetting my customers?”
At the moment it is probably easier to raise prices and justify it than it has been in the past. You only have to look at the price of petrol or shopping to realise that prices do go up but it doesn’t necessarily stop you buying petrol or food. The art of raising prices is fairly easy but needs to be managed.
The first thing you need to do is review your client base and see which of your customers pay on or before settlement date (80% on average) and those who do not.
Those customers who pay on or before the due date, phone them. Ask if they have a few minutes to spare as you would like their feedback on your products and services. You should conduct the conversation as if it were market research and your first question should be about improvements to your product and service they would like to see. You’ll be amazed how when asked, everybody has some criticism they would like to impart, no matter how satisfied they appear to be. If they make a suggestion that you feel could help your company, thank them and explain why. If on the other hand they make a suggestion that you beleive is wrong or unworkable don’t argue but thank them and say that you’ll look in to the possibility of implementing their suggestion. Either way your customer will be delighted to find that you consider them worthy of being asked for advice. You on the other hand have obtained some valuable insight and now know where your product and or services can be improved.
You should then mention that “unfortunately due to the fact that your manufacturing, or printing or petrol etc have gone up you are left with no alternative but to raise your prices by say 10% on a specified date”. However, because you value their custom and assistance you will be holding their price rise to say 5%. However, if they could improve their settlement terms to 7 days from the date of invoice, the price rise will be 2.5%.
To the late paying “customers” send them a letter explaining that due to circumstances beyond your control, as of say 1st May your prices will be going up by 10%. The majority will not question the rise, but some will and will call to question the rise. When this happens you have a golden opportunity to insure that you’re “customer” sticks to your credit terms by giving them an incentive. Tell them that if they can settle your invoices within 30 days the prices will only go up by say 7.5% but if they can settle within 14 days the price will only go up by 5%.
You may find one other advantage of a price rise in that you could loose the bottom performing clients will move to a fresh supplier. Remember by raising your prices you won’t have to work as hard to maintain your current turnover.
If you would like to know more about David please do not hesitate to ask or visit www.deanemcollections.co.uk
One question I am regularly asked when I’m speaking at events or running credit control workshops is “How can I increase my profit margin without upsetting my customers?”
At the moment it is probably easier to raise prices and justify it than it has been in the past. You only have to look at the price of petrol or shopping to realise that prices do go up but it doesn’t necessarily stop you buying petrol or food. The art of raising prices is fairly easy but needs to be managed.
The first thing you need to do is review your client base and see which of your customers pay on or before settlement date (80% on average) and those who do not.
Those customers who pay on or before the due date, phone them. Ask if they have a few minutes to spare as you would like their feedback on your products and services. You should conduct the conversation as if it were market research and your first question should be about improvements to your product and service they would like to see. You’ll be amazed how when asked, everybody has some criticism they would like to impart, no matter how satisfied they appear to be. If they make a suggestion that you feel could help your company, thank them and explain why. If on the other hand they make a suggestion that you beleive is wrong or unworkable don’t argue but thank them and say that you’ll look in to the possibility of implementing their suggestion. Either way your customer will be delighted to find that you consider them worthy of being asked for advice. You on the other hand have obtained some valuable insight and now know where your product and or services can be improved.
You should then mention that “unfortunately due to the fact that your manufacturing, or printing or petrol etc have gone up you are left with no alternative but to raise your prices by say 10% on a specified date”. However, because you value their custom and assistance you will be holding their price rise to say 5%. However, if they could improve their settlement terms to 7 days from the date of invoice, the price rise will be 2.5%.
To the late paying “customers” send them a letter explaining that due to circumstances beyond your control, as of say 1st May your prices will be going up by 10%. The majority will not question the rise, but some will and will call to question the rise. When this happens you have a golden opportunity to insure that you’re “customer” sticks to your credit terms by giving them an incentive. Tell them that if they can settle your invoices within 30 days the prices will only go up by say 7.5% but if they can settle within 14 days the price will only go up by 5%.
You may find one other advantage of a price rise in that you could loose the bottom performing clients will move to a fresh supplier. Remember by raising your prices you won’t have to work as hard to maintain your current turnover.
If you would like to know more about David please do not hesitate to ask or visit www.deanemcollections.co.uk
Sunday, 6 March 2011
Deanem Collections: Golden rules for Credit Control.
Deanem Collections: Golden rules for Credit Control.: "As a number of people will not be able to attend the Thursdays' Herts Business Expo (March 10) I thought you would like to read my thoughts ..."
Golden rules for Credit Control.
As a number of people will not be able to attend the Thursdays' Herts Business Expo (March 10) I thought you would like to read my thoughts on what I call the Golden rules for Credit Control.
One of the first questions I'm asked when people hear that I run a debt collection agency is
The answer is you can’t, but if you:-
A) Carry out due diligence on each and every order.
B) Have a firm credit control policy.
You can minimise your risks.
Terms & Conditions:
Are your Terms & Conditions adequate? Who designed them? What are your settlement terms: 7, 14, 21, 30 days?
Can you claim interest on overdue accounts? Can you charge your late payer for costs incurred in the collection of the overdue invoice?
Are you protected against damage caused in the fulfilment of your duties?
Are you protected if the customer interferes with your ability to carry out your work?
If the answer to these simple questions is NO, contact a specialist agency.
Account opening forms:
Do you know who is legally responsible for settling your invoice?
Is your client a sole trader, a partnership, a single Ltd company or part of a group? Where should you send your invoice?
If you don’t have a working account opening form, contact a specialist agency.
Authorisation & Satisfaction forms:
If you are providing an on site service, such as plumbing, electrical, equipment maintenance ask that the client sign an Authorisation form before starting work and then that they are happy with the service after the work is carried out.
The form should be on your company letterhead and should have two boxes.
Box 1) Should have spaces for the customer to write his/her name, property address, and authority to contract your services. There should be a space for the customer to sign that they agree for the work to be carried out as per your terms & conditions.
Box 2) Should have spaces for the customer to again write his/her name and that the work was carried out to their satisfaction or dissatisfaction. In addition, there should be a space for additional comments, good or bad.
If you don’t have an Authorisation & Satisfaction form. Contact a specialist agency.
Please remember if you have any concerns or questions about credit control or the collection of overdue accounts, please do not hesitate to contact David and the Deanem team either by email enquiries@deanemcollections.co.uk or by telephone +44 20 8446 7720
One of the first questions I'm asked when people hear that I run a debt collection agency is
How can I avoid debtors?
The answer is you can’t, but if you:-
A) Carry out due diligence on each and every order.
B) Have a firm credit control policy.
You can minimise your risks.
Due Diligence Check List.
Terms & Conditions:
Are your Terms & Conditions adequate? Who designed them? What are your settlement terms: 7, 14, 21, 30 days?
Can you claim interest on overdue accounts? Can you charge your late payer for costs incurred in the collection of the overdue invoice?
Are you protected against damage caused in the fulfilment of your duties?
Are you protected if the customer interferes with your ability to carry out your work?
If the answer to these simple questions is NO, contact a specialist agency.
Account opening forms:
Do you know who is legally responsible for settling your invoice?
Is your client a sole trader, a partnership, a single Ltd company or part of a group? Where should you send your invoice?
If you don’t have a working account opening form, contact a specialist agency.
Authorisation & Satisfaction forms:
If you are providing an on site service, such as plumbing, electrical, equipment maintenance ask that the client sign an Authorisation form before starting work and then that they are happy with the service after the work is carried out.
The form should be on your company letterhead and should have two boxes.
Box 1) Should have spaces for the customer to write his/her name, property address, and authority to contract your services. There should be a space for the customer to sign that they agree for the work to be carried out as per your terms & conditions.
Box 2) Should have spaces for the customer to again write his/her name and that the work was carried out to their satisfaction or dissatisfaction. In addition, there should be a space for additional comments, good or bad.
If you don’t have an Authorisation & Satisfaction form. Contact a specialist agency.
Please remember if you have any concerns or questions about credit control or the collection of overdue accounts, please do not hesitate to contact David and the Deanem team either by email enquiries@deanemcollections.co.uk or by telephone +44 20 8446 7720
Saturday, 5 March 2011
How an agency carries out a Trace.
As a Debtologist I am often asked what can be done if your debtor has disappeared or appears to have disappeared? How does an agency carry out a trace? What information can be obtained?
First thing that has to be recognised, is that not everyone can be traced. If someone has recently died or is in hospital, emigrated or even the subject of a custodial sentence. Other factors effecting if someone can be traced include that they have never been shown on the electoral roll or applied for any form of credit then the likelihood is they will not be found. However, if someone has any form of electronic identification or been shown on the electoral roll, their current location could be identified.
What cannot be guaranteed is that your debtor when found, will want to settle their debt. Before I explain how an agency carries out a trace, you will need to check that the agency data protection licence allows them to receive your information and that they can carry out a trace.
The first thing a tracing agent will do is to log on to one of the three main data providers. These are Experian, Equifax or First Credit and if sensible they will also log on to a secondary provider such as Checkit, Creditsafe or Tracesmart. Another useful tool is the UK Birth Marriage & Death register which is used to confirm a subjects’ full name, date of birth and where the birth was registered. However, due to Government changes to the register since 2006 there is now no central birth, marriage or death register.
If you can provide your debtor’s full details (first & last names) the first action will be to input the debtors’ name and last known address. Some sites will require more information than others, for example while Experian only requires the debtors first and last name and full address. If they are using Checkit they will also need the debtors’ title but only the house number and post code. The reason that the agency will use both a main & secondary data source is that the information contained within various reports will often differ between data providers. For example Experian may not provide much information on your debtor other than confirming a link between the debtor and their address, but Checkit may give previous addresses.
If you can only provide limited information such as an initial and surname as well as the address, the agency will utilise a data base such as Tracesmart. While Tracesmart does not provide credit information they can look at the details of people who were shown on the electoral roll and with luck the subjects’ first name will be provided.
What a tracing agent will be looking for apart from a current address will be if they made any credit applications thus confirming the new address or adverse information such as County Court Judgments or bankruptcies etc. This information is vital as it provides an insight in to whether the debtor will want to, or has the desire to settle their debts. If the debtor has no adverse information, then they are more likely to settle than a person who has one, two or more County Court Judgments.
As I stated at the start of this article, finding a debtor does not guarantee that your debtor will want to settle their indebtedness.
Useful contact details:
To check if a company is registered to provide credit information visit http://www.ico.gov.uk/tools_and_resources/register_of_datacontrollers.aspx
If you would like to know more about David or the services offered please visit our website www.deanemcollections.co.uk
First thing that has to be recognised, is that not everyone can be traced. If someone has recently died or is in hospital, emigrated or even the subject of a custodial sentence. Other factors effecting if someone can be traced include that they have never been shown on the electoral roll or applied for any form of credit then the likelihood is they will not be found. However, if someone has any form of electronic identification or been shown on the electoral roll, their current location could be identified.
What cannot be guaranteed is that your debtor when found, will want to settle their debt. Before I explain how an agency carries out a trace, you will need to check that the agency data protection licence allows them to receive your information and that they can carry out a trace.
The first thing a tracing agent will do is to log on to one of the three main data providers. These are Experian, Equifax or First Credit and if sensible they will also log on to a secondary provider such as Checkit, Creditsafe or Tracesmart. Another useful tool is the UK Birth Marriage & Death register which is used to confirm a subjects’ full name, date of birth and where the birth was registered. However, due to Government changes to the register since 2006 there is now no central birth, marriage or death register.
If you can provide your debtor’s full details (first & last names) the first action will be to input the debtors’ name and last known address. Some sites will require more information than others, for example while Experian only requires the debtors first and last name and full address. If they are using Checkit they will also need the debtors’ title but only the house number and post code. The reason that the agency will use both a main & secondary data source is that the information contained within various reports will often differ between data providers. For example Experian may not provide much information on your debtor other than confirming a link between the debtor and their address, but Checkit may give previous addresses.
If you can only provide limited information such as an initial and surname as well as the address, the agency will utilise a data base such as Tracesmart. While Tracesmart does not provide credit information they can look at the details of people who were shown on the electoral roll and with luck the subjects’ first name will be provided.
What a tracing agent will be looking for apart from a current address will be if they made any credit applications thus confirming the new address or adverse information such as County Court Judgments or bankruptcies etc. This information is vital as it provides an insight in to whether the debtor will want to, or has the desire to settle their debts. If the debtor has no adverse information, then they are more likely to settle than a person who has one, two or more County Court Judgments.
As I stated at the start of this article, finding a debtor does not guarantee that your debtor will want to settle their indebtedness.
Useful contact details:
To check if a company is registered to provide credit information visit http://www.ico.gov.uk/tools_and_resources/register_of_datacontrollers.aspx
If you would like to know more about David or the services offered please visit our website www.deanemcollections.co.uk
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