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Originally Posted by ScoMac
So they signed on for 1 year of maintenance and web hosting for 12 months, but opted to pay monthly.
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Aren't they in breach of their contract? If thats the case, and you've chased them up, just pull the plug - you'll be amazed how quick their communication problems resolve themselves.
I'm not being childish and I agree with Oranje - your terms are your terms; they agreed to them and they broke them. Whats the point of having terms and a contract if you don't uphold them?
You're not a charity, you're a business and you need to make money - it pays your bills and feeds your family. They're doing the same - they're running a business and feeding their family so why are you letting them walk over you? That's just adding insult to injury.
I have to say I'm somewhat lacking in sympathy for customers who drag out paying their bills because last year I was seriously fucked over by three customers (one large, two smaller businesses) and lost a total of £8,000.
One was a new start and we bent over backwards to help them out and then they decided once the bill was due that it would be a good idea to not answer our calls and reply to our emails. As a result they've just been landed with a £180 solicitors bill on top of their debt.
Another was a long term customer (over 4 years) who we were on good terms with - or so we thought. Payment was delayed due to various factors; change of accounting system, accounts payable on holiday and then, lo and behold, bookeeper had terminal illness and was in once a week - and always forgot to process our payment. Turns out the business was terminal and we got shafted big time when we found out that they went bust. Also turns out that the guy who ran it is still a director at the BNI of which we were a member of. How nice is that?
I've learned that you need to stick to your guns; get money up front and remainder on completion. If its a monthly or annual thing and you don't want to seem cut-throat, make out that someone else holds the lead to the server plug and you have to play by their tune and so they have to play to yours. Pull the plug and when they come running tell them straight - you've covered their costs for a month but you can't do any more until you've been paid. If they're put out then I'd have serious thoughts about whether they're a stable company.
Don't be guilt-tripped into giving them another month or so, you may as well just give them it for nothing.
After all, whats the point of having a client if they don't pay?!