Debt Recovery – How to Recover Account

Payments … Quickly, Efficiently and Painlessly

Michael Toddhttp://opsgl.com

2

It’s all about Planning

3

The basics

• Emails (stealth mode)

• Statements (stickers?)

• Credit Cards• A “Pay By” date on fees• Put BSB details on fees• Email SMS’s (from computer to mobile phone)

Today is about “Slow” Debt NO T “Bad Debt” PLAN AHEAD

H L Menkin (outspoken social commentator early 1900’s)

... “to anybody who might send something critical to me - this is my response. I am sitting here in the smallest room in my house with your letter of criticism before me. Soon - it will be behind me.”

no escape – capital letters

4

Sending Text Messagesfrom computer to mobile phone

http://www.smsglobal.com/en-au/

8 cents each and replies received as an email

5

Why people really DO pay(7 influencing factors)

• Need.

• Honesty, appreciation and obligation

• Conscience• Embarrassment • Fear

• Physical Safety • The “How Do I Get Rid Of You” factor

6

How NOT to get paid A True Situation

The FactsA typical School Term is 10 weeks.

Collection ProcessFees sent out during the second week of term. 8 weeks to go before end of term

Parents have 30 days to pay. 4 weeks to go before end of term

Headmasters Letter sent out requesting payment within 14 days. 2 weeks to go before end of term

Term 1 fees

Term 2 fees

7

Who will you pay - now?

A. pay St Andrew’s and St Peter’s $500 each?B. pay St Andrew’s $1,000.C. pay St Peter’s $1,000.D. pay no-one - leave the country!

8

Six reasons behind all excusesDISPUTE – unhappy – query – false.

CARELESS – forgot – didn’t understand.

DISORGANISED – their own books are in a mess.--------------------------------------------------------------------------------

NO MONEY – the intent is there but not the cash. --------------------------------------------------------------------------------

UNCONCERNED – not bothered – too busy.

DISHONEST – want to use the school’s money for something else.

3

2

1

9

The three golden rules

• Start early.

• ALWAYS be the good guy.

• Be VERY hard to ignore.

10

Rule 1. Start early

Know what you really want and will enforce.

Are payment terms as tight as they can be?

How soon do you send out the fees?

Decide WHO you want to look after the accounts.

Switch the onus from ‘Can I’ to ‘Please don’t’.

Write down your procedures.

Tell everyone – new and existing parents.

Chase overdue accounts within a few days of becoming due if not immediately.

11

Rule 2. ALWAYS be the good guy

Always blame someone/something else.

‘Thank you for telling me that.’

Write the bad news,

speak the good news.

Assume innocence.

Be surprised if payment’s not on the way.

Set up a collection hierarchy:• information gatherer. • problem solver• decision maker.

12

Rule 3. Be VERY hard to ignore

Make collections systematic

– never miss a week.

The catThe 9 year old

Anything inside one of your envelopes

Phone, Fax, Email, Letter, sms, Business Cards, Statements if you HAVE to

Phone about ANYTHING ….

Handwritten plain envelopes

Write to the home address on a Thursday

13

You’ve just got to get their attention

Use coloured stationary for Statements

Handwritten envelopes

Hi John,

Please contact me.

Cheers, Fred.

Handwrite on selected Statements

Highlight overdue amounts

14

Good morning Mrs Jones.

It’s Gwen Iveer from St Andrew’s. I’m doing the accounts today.

It looks like we haven’t got payment for this term’s fees yet. Has it already been sent or is it on the way?-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

But, if THIS is how you feel

DON’T PHONE!

The First Telephone Call

15

Telephone Skills

Core Telephone SkillsUse body language.Listen.Allowing parents to “save face”.Take Notes.Always get a ‘Here By’ date.

Core Telephone RulesNever assume a reaction Never use emotion.Never leave more than two phone messagesIf you know the outcome before you call, don't call, write.

“I know. I know!”

16

Telephone Skills

For debtors with a disputedon’t arguespeak softly‘Thank you for telling me that’'I see ...''Is there anything else'

Sneaky TricksPhone about anything else.Phone, get distracted, leave a message

Don't feel like phoning?Then don't! Write, text message or get someone else to call.

17

“I can’t afford the full amount”

If a parent tells you that they can’t afford the full amount owing, would you say or do anything different from any of the following?

• Well, how much CAN you afford?• Come in to the school and we’ll talk about it.• I need at least half. • I need the full amount now, nothing less will do. • Can we come to some sort of an arrangement?

18

How To “tidy up” the existing situation

Classify all accounts into four categories:

1. The untouchables.

2. For special consideration.

3. Just due for payment.

4. Long overdue.

19

It’s time forThe Role Play from Hell

20

More Resources

This entire PowerPoint presentation will be available on the web next week. Please email me at mlt.opsgl.com for its url.

Try a few searches here – many telephone phrases, email and letter templates can be found in the blog.

This Free Report expands on some of the points made today.

.. or revert to old technology, phone me or drop me an email!