1.

The policy of letting people pay whenever they feel like it has not worked.

The policy is the problem, and a new one is needed.

For example, with TCs, 90% of all clients pay after their self-assigned payment date.  In other words, they get to pick the date, and then miss it !!

...Whenever there is a failure rate this large, the population is excused.  The policy itself becomes the culprit.

It seems we are not doing anyone any favors by being this liberal.

2.

We cannot write off bad debt.

Our method of accounting does not allow for bad-debt write-offs.

We use this method of accounting because we had been assured timely payments would never be a problem, and for other reasons as well.

However, you have a budget – that is, money that comes to you automatically, and indeed, needs to be spent, one could say.

And while there are circumstances where this money might come out of your pocket, every time we waive a fee (or are stiffed), it always comes directly out of our pockets – and this is for a service that we have provided, and, on a timely basis, upon request, with the price having been settled.

While many support us by saying "It is not their money, what is their problem," and others say "They should understand that you are in business to make money,"  this is not the real issue for us...

Pride.

We have worked very hard to write and deliver this program, and it shows.

Almost all TCs are provided within minutes of being requested.

We have automated virtually all of our back office functions to maximize the time we spend developing the program and servicing our clients.

No one who is ever late in paying – or refuses to pay – expresses reluctance because of a failure in service, or because of a deficiency in the product.

If someone wants our product, at the price listed, requests it, and gets it, why should we have to argue about getting paid for it?

Furthermore, what we encounter with non-paying clients is either forgetfulness (not so bad), or contempt and/or rudeness.  Why?

If one doesn't want WinPower, one shouldn't get it.  If one does wants WinPower (or a TC), one should pay for it.

Wasted Lives.

As of 2008, we are owed in the mid 5 figures.

•••

We are spending way too much of our time in collections.  This is not our main skill, yet we are spending more time calling for money, faxing new invoices, and emailing for money than anything else.

And we don't enjoy asking people for money.  If someone can't afford it, we don't want to add to the pressure.  If they can, we don't like being treated like beggars after having maintained our side of the bargain.

We think programming and tech support are infinitely better ways to spend one's professional life than hassling people for money, and we thought we have made our choice.

Finally, on this point, every minute we spend in collections is a minute spent away from developing WinPower, or supporting our clients in good standing.  Why should the conscientious clients pay, in terms of service, and at the expense of the inconsiderate?

5.

Reality.

Family, mortgage, health insurance...  Need we say more?

If there was no problem, we would not be instituting this policy.

We started out not charging for TCs or Widow's Cares or new assignments (our first 2 years), nor for tech support, either (our first 4 years).  We started out allowing people to pay whenever they wanted for WinPower, and went 6 years without demanding payment for new buildings, right up until now.

Yet we have had a good experience with nearly every client we have.

It's the policy that is bad.  And according to quite a few of our long-term clients, it is about time that we recognize it...