Sales Tip: What to do if your customer has missed multiple payments

Nov. 10, 2021
Once your customer has missed three or four weekly payments, it is time for additional action.

Once your customer has missed three or four weekly payments, it is time for additional action. Three to four weeks may not seem like a lot but if you miss three or four car payments, the repo-man will be knocking soon. For each month that passes, your chances of collecting are reduced by at least 10 percent.

In jobber training, companies will say to not throw good money after bad focusing more on your selling. This seems very one-sided since your suppliers always get paid by you and skippers don’t really hurt them.

The court system is one alternative but depending on your state laws this could take years and keep you significantly away from your selling time.

Collection agencies are a possible alternative, but they can be so expensive that they may also not be worth your time. Additionally, some collection agencies will want you to sign the debt over to them. This is risky as the debt is now theirs so you may not ever get repaid and if they own the debt, they are not subject to any fair collection practices laws. In my opinion, Tool Dealer Network may be an option for you. It is a mobile jobber only collection service that has reasonable collection rates and follows the collection regulations.

If you are thinking that you don’t want to be known as a hard-ass by your customers that is the wrong thinking. A strong reputation in the industry for wanting your money is perfect. 

About the Author

Alan Sipe | President, Toolbox Sales and Consulting

Alan W. Sipe has spent the last 42 years in the basic hand tool industry including positions as President of KNIPEX Tools North America, Sr. VP Sales and Marketing at Klein Tools, Manager Special Markets at Stanley Tools and sales management at toolbox manufacturer Waterloo Industries. Currently Sipe is the owner of Toolbox Sales and Consulting specializing in sales strategy, structure, development and training. Sipe can be reached at [email protected] or 847-910-1063. Connect with Sipe on LinkedIn.

Sponsored Recommendations

Gain expert insight into today’s evaporative emission systems and why OE-matched EVAP components are crucial for performance and compliance. See how Standard® delivers precision...
There is a difference in gas fuel injectors. Learn why Under the Hood’s Russ Evans uses Standard Fuel Injectors on his customer’s vehicles.
Just following a few simple tips can improve your pneumatic tool's performance and provide years of safe, maintenance-free service. Dive in to see what you could apply to your...
Hear what senior autotechs have to say about the AIRCAT Nitrocat 1056-XL compact impact wrench. They’ll provide their reviews on tools they own and have been using every day on...

Voice Your Opinion!

To join the conversation, and become an exclusive member of Vehicle Service Pros, create an account today!