Collection Letters: One Lab's Approach
Posted Apr 28, 2011 in Management
Our collection efforts are usually conducted in three stages, with the pressure getting incrementally stronger with each letter. In addition to getting the money, we want to retain the customer's goodwill so we try to give him ample opportunity to save face. Whenever possible, we try to add a touch of creativity or humor, in hopes of attracting attention and getting immediate payment.
In our first letter, we simply inform the customer that the bill is past due, giving pertinent details on invoice dates, numbers and amounts. Next, we send a letter suggesting that the client has no doubt overlooked the payment. The third one is stronger and advances the idea that the customer should not be indifferent to his obligation.
Following are three letters that illustrate our increasing demand for payment:
Dear Dr. Smith: You will note from the attached statement that a number of charges have gone beyond our regular terms....
