Ajoy K Guha - Associates - Corporate Consulting & Training Ajoy K Guha - Associates - Corporate Consulting & Training Ajoy K Guha - Associates - Corporate Consulting & Training
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Principals of Receivable Management - Ajoy K Guha
   
A Sale is complete only when the last paisa is collected on agreed time. (That includes Sales-Tax concession forms, bank guarantees, tax-deducted-at-source certificate etc.)
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Money due from customers, if you don’t ask, you don’t get.
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You should be able to collect your money and retain the customer as well. And that is not difficult.
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Debtor – the older it gets the more difficult it is to collect, and we have less energy to follow-up for its recovery.
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Don’t over commit. Deliver what you promised – which means delivering every clauses in the acknowledged-order.
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In an organization collecting money is everybody’s business. Let all work be client-centered.
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Get rid of the dead beat customers. In this era of paper thin margin, you can’t build a healthy organization on sick, weak & indifferent customers.
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Focus on Customer Complaints and Sundry debtors.
 
Delight the customers. Consistently give excellent service & become their weakness. Make him need you. Interest him to do business with you always. Interest and fear of losing you will keep you together.
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Compete on benefits, advantages, features, service, value proposition, price, discount, market share, uniqueness, technology, innovation…….. etc. but, don’t compete on credit. Chances are it may make your business very weak.
   
  Five Main Reasons Why Customers Don’t Pay (My survey & 28 years working experience)
   
 
  Reasons % of Customers % of Over-due Amount
1 Inefficiency in our office 70% 65% to 75 %
2 Inefficiency in customer’s office   10% to 15%
3 Customers facing fund problem 30% 2% to 5%
4 Customers purposely delay our payment   2% to 10%
5 Complaints (It could be genuine or it could be a ploy)   5% to 10%
 
  Collection is the last activity in a transaction and therefore there is no shortcuts.
Read “CASH before you CRASH”. Doing business will be more enjoying after you read this book. Authors
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