Being Tough in Business

[22]

I'm not. I've not had a 'proper' PAYE job since 1997, done some pretty special things with big brands and a lot of wheeling and dealing on a big/corporate scale. Give me your money and I'm ruthless, when it's my own money I'm simply too soft. I can't quite work out why.

I run a small social enterprise providing amateur and youth theatre groups with props for shows. It just about pays the unit rent most of the time, which will do for now. I take a deposit when props are hired which is returned once the props are back safely. Got a message Sunday evening saying some hired props didn't all fit in the van to come back, some have gone, the others I'd get 'as soon as possible'. I was expecting them Sunday so that was a wasted day. Waited in Monday - no show. Fast forward to today and both vans have been and gone with the props returned. Charging extra days would eat up all the deposit even at 1/7 of a week's hire (terms say 17.5% of a week per day late). In fairness I could invoice them for more. I also need to repaint one large prop and build a new wheeled base as they've changed it (maybe 90 mins in the workshop).

Yet still, I find myself trying to find a way to do it so they get *some* or even all of the deposit back. We exist to make things affordable/easier for amateur groups than commercial hire, but I can't find the 'stick up for yourself' button when I really should.

Strange as I'm brutal with everyone else's money, just a soft touch with my own.

[Splats]

You're accountable for someone else's money whereas you feel you can be less ruthless with your own. Get a ball breaker wife and run all the finances through her... problem solved

[berlintaxi]

I'll say it before anyone else does, grow a pair.

Seriously either stick to the terms and withhold the deposit or try and have a friendly chat with someone who has a clue about the word responsibility at the hirers, I understand the temptation working for yourself is to try and keep everybody happy,and keep future business, therefore you sometimes ending up rolling over, unfortunately some people in the world see this as a license to take the piss.

[TVR MAN]

As a middle ground, can you take the deposit but offer to offset it against any orders placed in next x weeks?

[22]

We have props for very specific shows, so although one group will recommend us to another, repeat business is rare (as they wouldn't do the same show again).

I emailed to say I was charging 2/3 of the deposit as late/workshop fees - feel a bit rotten as it was all set up for social benefit, but they were a pain paying and then late back etc.

[MrJuice]

Spending time getting things right for your client is very different to your client taking the piss with your time. Do the former if you need to, don't allow the latter to happen.

[Kinkell]

Get a proper job some would say, but I used to be concerned about depriving pensioners of their weekly income with a few hours of gardening. It's only money and better in my pocket after shovelling about in a wet garden than in some finance related pen pushing in his plush office.

[andyb28]

I think you may find it comes organically over time from people taking the p!ss.

12 years I have been running my company, I have been screwed over a few times by hard-nosed corporates. It hurts your business and makes you think, I need to protect myself from this happening again.

The sad truth is, we all want to do well for our customers, we want to treat customers how we would like to be treated. Thats all well and good, but there are some real nasty folk out there that will take advantage and will call it 'business'. I am not saying thats what has happened in your case, but I would say your company needs to evolve, adapt around whats happened and make sure it doesn't happen again.

[Steve H]

22 said:

I emailed to say I was charging 2/3 of the deposit as late/workshop fees - feel a bit rotten as it was all set up for social benefit, but they were a pain paying and then late back etc.

Feeling empathy for your customers is a good thing, getting on well with them, wanting to help them, liking them; all good things.

But. They are still customers and charging them correctly isn't "being tough", it's doing what you need to so you will still be in business next time they need you.

[akirk]

It is possible to find a happy medium - you don't need to be either hard-nosed, or total walk-over...
you need to match your approach to the customer and how they react...
initially show some steel by being very professional by how you deal with them up-front - taking the deposit, walking them through what happens if returned late etc.
then be more relaxed / tougher on return depending on how they behave...