I own a company and one of the things we do is provide Web and email hosting (it’s not a huge part of our company, but we do it.)
We have this client that we got via some other schmuck client that we’ve had for a couple years now and we’re just tired of dealing with them. They owe us $24.95/mo and they just can’t manage to pay on time and we spend more energy and effort trying to collect from them than they’re worth.
We wouldn’t miss them if they left, and have been hinting at trying to get them to leave for the past few months. I think we’re ready to ditch them now and just tell them flat out to take a hike.
There’s no rules or laws saying we can’t do this, and it wouldn’t ruin our reputation at ALL if we “set them free.”
But, I need help composing the email we’d be sending them that tells them they’re gone as of Whenever (Feb 1 maybe).
Anyone ever had to do this? Any suggestions for how to word the email?
Due to repeated late payments for the domain deadbeat.com, your account with us will be terminated as of Whenever. In addition, if we do not receive payment for the remaining period of service we will be forced to contact a collection agency. We regret the need to take this step, but it is unavoidable.
As of XX/XX/07 we will be reorginizing our accounts. Your account does not meet the criteria nessesary for us to continue moving foward with it. We wish you luck in finding another provided.
No need to mention the required criteria is them paying their bills on time.
We don’t want you as a customer any longer. We’ll give you a few days to find another service, but we are shutting you off as of (date.)
We’re pretty busy here, and we don’t have time to chase you down every month to get our fee.
Yrs trly, etc.
Zipper JJ, if he’s doing business on his site, giving him a week or two will CYA against a damnfool lawsuit. If not, you might not want to bother with that. I wouldn’t count on getting your final payment, either way.
As of January 1st, we will no longer be servicing customers not doing a minimum business of $100. per month. As such, we will no longer be able to provide our services to you.
Thank you for your business in the past, and our sincere best wishes for the future.
The polite way to fire a customer without insulting them is to say that you feel you are unable to properly provide for their needs, and another [shop, provider, agency, whatever you are] would be a better choice for them. Followed by a friendly but firm and unyielding “I’m afraid we won’t be able to [do whatever we do for you] anymore.”
Dear Customer, We Break Thumbs collection agency has advised us that they are increasing their fees by 50%, and as we are unable to absorb this, we regretfully advise that we can no longer provide you with your internet service.
I wouldn’t lie, but I would be vague.
Dear Customer,
Thanks so much for your past patronage, but I’m afraid we won’t be able to continue our business relationship. We can give you 30 days to find a new provider, but may we suggest <competitor that you don’t like here>?
Sincerely,
The Man
Consider just shutting people right the heck down when they don’t pay on time. I know there’s at least one fulltime hosting company that, if they do not receive payment on the due date, they delete the website from their servers next day. Simple, direct, appropriate.
I work in billing for a webhost, so I know whereof I speak.
The letters above provide many useful wordings for getting rid of your deadbeat customer. I may suggest, if you haven’t done this already, reviewing your service contract with the customer, and seeing what actions were placed there regarding late/non-payment of fees. If you don’t have a section regarding this important (critical) issue, then I also advise condiering modifying your contract so that you have a “policy” in place to handle these types when they come up in the future.
If the late monthly payment is the only problem, you might offer to set them up with 6 month, or annual billing (advance payment) to simplify the logistics.
If you are set on cutting the cord, I would suggest you burn a CD with all of their website material on it, and offer this, and email forwarding for N months, IF they pay outstanding charges after termination. You might also offer to assist them in transferring their domain name if they don’t own it. (some ISPs “rent” the domain names to clients)
Sure it is some hassle, but it may save some hassle and bad mouthing of your reputation.
Starting (30 days from now) our fee structure will change. Our new fees will be as follows: (list three different combinations of services, the cheapest of which is $100.) We will also require our services to be pre-payed as of that date.
please indicate the package you wish to subscribe to. If we do not hear from you by (20 days from now), we will assume that none of the packages meets your needs, and we will de-activate the account
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In the end, though, you can choose not to provide services to anyone - and just cut him off.
That was going to be my suggestion, too: Tell him you are raising your prices and then raise them to a level where it would be worth your while to go through the hassle of getting him to pay. If you can squeeze $100 a month from him, then it’s worth the effort; if you can’t get the $100 a month, close his account for nonpayment.
Most likely, he’ll just go elsewhere, especially if your charge is too big.
My philosophy is never to send a customer away. If they aren’t a good customer at the rate they pay, then change the arrangement. If they pay up, you are ahead; if the don’t, then they quietly go away of their own accord.
In this case, as has been suggested, you could raise their prices to include a PITA (pain in the ass) surcharge. Before that, though, I’d put some teeth behind the payment policy they should be following anyway. Let them know that from now on there will be late fees and an interruption in service if they fall behind, and then follow through.
Thanks for all your suggestions. I’m actually off work this week, but I sent our secretary this thread to peruse and come up with his own email for me to approve when I get back.
I realize that it can be bad business to turn business away, but really we’re so small and they are so jerkish it’s not worth it.
We’re definitely getting rid of them. Just needed some good suggestions on how to word it. I’d tell you more details about how and why they suck but their story is so long and convoluted, it’d only be a good read if you were one of the 3 of us who worked with them.
FWIW I agree w/ Waverly, burning bridges is not smart, especially in business. You just never know when it might come back to bite you. Jack up their price, add late fees and suspend service until they get current, let them be the one to leave if that’s what they choose, but try to avoid turning away business if you can.
One thing regarding those type of letters. Be sure you are ready to follow through it with ALL your customers. if not you are
Lying
2)Providing written evidence of discriminatory treatement (Even if you are discriminating against a dead beat)
Anything you communicate with a client in a business letter should be factual, or you could find yourself in legal hot water (INAL< but it just seems to make sense)
I’ve worked in accounting for over 15 different companies and almost every one of them charged different customers different rates. Usually this is in the form of lower rates for higher volume customers, but I have seen higher rates for those customers who always seem to cause problems. If you raise the rates for one customer, using a generic sounding form letter, you’re not lying, you’re just letting them make assumptions.
And as for evidence of discriminatory treatment (assuming they talk to another client and realise they’re paying more), so what? Deadbeats, jerks, and timewasters are not protected classes, so there are not any laws against discriminating against them. The bad publicity and word of mouth from the deadbeat would worry me more. They can’t pay their bills, but they always seem to flap their gums.
I do agree with those above though that in my experience, the best way to get rid of those PITA customers is to charge them for the headaches until they go away, or you can afford to retire. Of course, sending them to your least favorite competitor is always an option too.
Well, as a rule I never write anything in a letter or email that I wouldn’t want to hear read to me in a courtroom. That said, lying isn’t a crime except in certain situations. Assuimg you don’t slander them in the letter, it isn’t even lying, never mind a crime.
