I'm a self employed heraldic genealogist and artist. For a fee I research familial coats of arms, and present my findings to my client in a plain English report.
If the client then decides he would like that coat of arms painting, I ask a 50% non refundable deposit. If the client for any reason fails to pay me within 28 days of payment first becoming due then he looses his deposit and his painting. I'm then left with a painting that I can't sell on - would you buy the coat of arms of a family you have nothing to do with?
It's not so bad on wood, I can sand it down and use it for someone else. But on canvass it's not so easy to obliterate a painting.
I realize I'm producing a luxury product and people are more concerned with essentials than a coat of arms hanging in the hall way but I have to live too and I'm fed up with bad payers.
I've just checked my business account this morning to find that a particularly large commission which was due 27 days ago has not been paid for. I could and have in the past resorted to the Small Claims Track of the County Court but it's so laden with paper work (everything has to be filled out in triplicate) then depending on the amount of the claim I have to pay a fee to register the claim, although I always ask for costs and I'm also permitted to add interest.
Once or twice, the defendant has pleaded financial hardship (Yet ordered a hand made luxury product!) and the judge has ordered him to pay something like £2 a week.
I'm now trying to think of tactics to off set this sort of thing without making me unapproachable. I'm lost for now.
Guess I'll just have to kick the cat - again!
Any suggestions?
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I have to wonder how costly canvasses really are. If your 50% is not covering the cost of materials then you most likely are charging way too little.
In construction at least half of the costs are for materials. In many cases like drywall, the cost of materials is more on the order of 1/4 to 1/3rd the total cost of the job, the remainder is paying for the skill of the laborer(s). And that is the cheapest drywall job where sprayers of texture are used to hide imperfections. If you are getting a smooth plaster finish (a hand job) the cost of materials is closer to 10% of the total job, the other 90% is paying for the labor/skills.
Why 28 days? A business month is 30 days. At least here in the states.
Are payment plans an option, do you try to work with your clients?
In consruction its done by thirds. 1/3rd the cost up front, 1/3rd halfway through and the last third on completion. In most cases that 1/3rd covers the cost of the majority of the materials, the second third covers the remainder of the materials and payments to the crew (employees) The remainder covers the costs of labor for the end half of the job.
Since this is a luxury item and highly specialized skills are in play, why not raise the upfront cost to 66% (2/3rds) as sort of 'insurance' against non-payment? Surely that high of an investment on the part of the client will weed out more dead-beats, and then the loss should only be your time and nothing of the materials.
I lived and worked my general rules:
1. Never spend money you don't have in hand. any prospective client was 'extra' money - I didn't count on that cash as being already there.
2. Squirrel away 1-3 average size jobs of funds for materials and additional labor - This way I had the cash to cover the materials and labor of other people. Yes I took a personal loss, but it kept my head above water.
I understand that people can sell anything through ebay - even useless junk finds a home... Perhaps these unwanted coat of arms are wanted by someone - somewhere? Surely there are other people who share the surname of your clients thus would want to buy a coat of arms?
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Again, some useful thoughts to ponder on.
Thanks!
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if a client looks like they might not go through with it i would have them front the initial costs or more.
Always have them sign a agreement before starting a project. Just a thought how good it would be to sit across their sad face in court.
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Don't think I haven't already thought of these things.
I have all the necessary paperwork and everything is worked out in advance with the client signing his copy of the paperwork containing my instructions from him.
I need to stay competitive though. I'm up against franchises that can churn these things out from a factory somewhere. I use hand tools and power tools, artists brushes, paints and varnish. I back my wooden products with baize and a brass plate over the drilled hole to hang it from, I even include a good quality picture nail. Nothing leaves my workshop until I'm personally satisfied with it.
My research is professionally undertaken and I'm careful to point out that although the Heraldic Achievement is one first registered to a family with whom the client shares a surname, it should not be displayed as his own and there there is no such thing as a Family Coat of Arms (But I'm getting technical and off topic!).
The County Court system in England and Wales is a dog with no teeth to the small business.
I can pay my fee to register the claim and the defendant may or may not turn up. If judgement is awarded in my favour the court must then consider the defendants financial circumstances. I was once in the position of having to accept outstanding payment of £200 at £8 a month!
If the defendant fails to pay after judgement I have to go back to court to apply for a bailiffs warrant. More time, more money.
Bailiffs in England and Wales cannot force an entry to anyone's home. They may only enter with the permission of an adult on the property (Not children). You don't have to answer the door to bailiffs and if you do you don't have to let them in. They will probably ask the person being visted to sign a document - "Agreement for Walking Possession" which basically means the debtor may keep their property in their home provided they agree to and keep to an arrangement to pay by instalments. That usually includes the bailiffs fee.
If they gain lawful entry they can come back again within "reasonable hours" and THEN force an entry or even gain access through an unlocked window or door.
So you see what a drawn out long-winded process it is.
Think I'm going to have to insist on payment up front in future.
The buggers!
Thanks again peeps!
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I should add, that bailiffs acting for the Inland Revenue and in some cases the local authority CAN force an entry and may turn up with the police to prevent a breech of the peace.
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Self Employed - Bad Payers
