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W&D Weekly
September 30, 2015
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The Latest
Tips for Working with Window Lawyers

To who manage the risk for product manufacturers and resellers, lawyers should not only have knowledge of the law, but make connections between established legal issues and the nuances of the fenestration business. To be sure, there are a few areas you might want to review with the lawyer representing your window and door company. Read More 

 
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Product Spotlight
Pull Handle Casement Window from Skyline Windows

Skyline Windows’ new ADA-compliant pull handle casement window can reach 34 inches in width and 103 pounds and can be customized in these ranges. The multipoint hardware is available in finishes including oil rubbed bronze, natural nickel, brush finish and satin nickel. The standard ADA-complaint pull handle casement window comes with a multi lock system that eliminates the need for a top handle.

 
The Talk

By Vince DiCecco

Cash is your company’s lifeblood. Without it, the business cannot function and grow properly. While sales are important, cash is still king. Failure to have a system to effectuate collections is a plan for eventual failure.

The first step is to put some past-due prevention measures in place. Some proven strategies are to develop a credit approval process for new clients, collect a 50 percent deposit on all orders, and/or maintain an Accounts Receivables Aging Report to track the payment status of all of your customers.

After making efforts to prevent past-due accounts, the next step is to accept the fact that some customers are slow payers and will take as much latitude as they perceive you will allow. Studies reveal that the likelihood of collecting receivables drops significantly as time goes on—from more than 90 percent after 30 days past-due to 74 percent after 90 days, and to just 50 percent after six months.

So, don’t put off a collection attempt with the hope that a check will miraculously arrive in the mail. Build into your system no more than two business days grace period and never wait more than three days past the due date to contact the customer.

A friendly email reminder may work but keep in mind that only about 25 to 30 percent of emails ever get opened. Phone contact is proven to work best. Create a script from effective calls you’ve made in the past and/or have templates for any written communications. This practice helps to ensure consistency and saves time.

Having to ask good people to “pay up” is frustrating, time-consuming and uncomfortable. While collection efforts are not the most enjoyable function of running a healthy business, they are one of the most important. Implementing some of these practices will keep your customers out of collections and the cash flowing through your business.

How does your business make collections? Do you find yourself 'chasing the money' more often than not? Weigh in on this week’s poll, post a comment to share your experiences and/or email your thoughts on the subject.

In general, do most of your customers pay their invoice on time? How late are those that are late?
Most clients pay on or before their due date.
Most clients wait until I call them to make a payment.
Most clients avoid my calls and pay 30 or more days late.
My company collects a deposit and insists on collecting payment the day products are installed.
My company insists on collecting the entire payment before or on the day the service is rendered.
 

Do You Anticipate a Strong 2016?
Seventy percent of poll respondents say "yes."  Read the Full Results

 
 
The Outside View
The Politics of Overtime
From Hardware & Building Supply Dealer
Worker Shortage Hinders Construction Employment Growth in August
From Glass Magazine
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