Getting The Rest Of Your Payment In Time

Business By Cakes-and-bakes Updated 24 Jul 2011 , 3:55pm by olleharr

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Cakes-and-bakes Posted 24 Jul 2011 , 2:34am
post #1 of 7

Bruncohappens post insipred me to ask a question of my own.

Right now my policy is prepayment in full (I sell cake pops). If it is a very large order then 50% to book the date and the other 50% 3 days before the event.

Most my customers were choosing the prepayment in full option. I now have some who are choosing the 50% option.

One of them, when I emailed her to remind her that her remaining balance was due the next day, emailed me back asking if she can pay on delivery.
I have VOWED to not accept payment on delivery anymore.
I emailed her back explaining this and thankfully it wasnt a problem, and she paid the next day.

My question is, if this happens again in the future, how do you handle this if the customer isnt so understanding? If they insist on paying on delivery, or just give you the run around, etc?

I would never make the delivery if I wasnt paid in full. But I do wonder about the idea of having all your hard work and money go to waste preparing something that in the end you end up keeping because the customer didnt fulfill their end of the contract.

ALthough I do agree with "my oven doesnt get turned on until i am paid in full", with very large orders of 300 and 400 cake pops per event, I end up having to start making them waaaaaay in advance because the ones I make are very detailed and time consuming.

6 replies
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cakestyles Posted 24 Jul 2011 , 2:49am
post #2 of 7

I would change your policy from 3 days to at least 14 days.

Mine is "payment in full 30 days prior to event".

3 days doesn't give you much time to deal with issues like the one you mentioned and it's so close to the actual pickup or delivery.

If they insist on paying you at delivery, explain to them that would be a breach of contract.

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Chonte Posted 24 Jul 2011 , 3:03am
post #3 of 7

you can't go to a store, buy a turkey and pay for it the day you eat it. you have to pay before you leave no matter how much you "insist". i think as long as you have it you your contract you shouldn't have any issues. if they don't want to agree to your contract then they can order somewhere else

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scp1127 Posted 24 Jul 2011 , 5:43am
post #4 of 7

I made my site an e-commerce site. They can order from the site or I can create a custom order. Either way, I let them know that as soon as I receive payment, the site will generate an invoice. I've never had a problem. People are very used to payment-in-full with the order for almost everything they purchase. Just say that you are sorry, but that is your policy. End of conversation. I cannot imagine a customer trying to run over me or insist I change my policy. If you come across as a pushover or someone that can be manipulated, you will get some of that. You are the only one that can allow this to happen. You don't have to come across as mean, just a businesswoman who is confident in your products and your policies.

Edit: My custom orders allow for multiple payments, but I will still not consider it a sale until all is paid correctly.

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indydebi Posted 24 Jul 2011 , 12:26pm
post #5 of 7

I used to explalin as, "The down payment puts you on my calendar. The final payment actually turns on the oven."

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QTCakes1 Posted 24 Jul 2011 , 3:33pm
post #6 of 7

I would at least do 2 weeks, if not 30 days. And if they give you the run around early on, it gives you the time to tell them "HEy, I need your final payment by such and such date and if I don't recieve it, your order will be cencelled with no refund". You do have it in your contract that the deposit and all monies paid are non-refundable, right? Also, a 30 days or 2 weeks out will let you know if you'll be getting your money or not, so you won't waist your labor and all expenses should be covered by the 50%, so not much of a lost.

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olleharr Posted 24 Jul 2011 , 3:55pm
post #7 of 7

Indydebi that is the best line ever! It explains things perfectly!

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