Guaranteed payment on mailing?

[jdr999]

Hi all,

I had a new customer stop in yesterday who is liquidating & closing his retail business and wants to do a large EDDM run to the tune of $10,000. He said he could use vista but would rather support a local business even if it costs a little more. (His business is a few towns away?)

I'm toying with the idea that this job may be legitimate, but I'm having doubts.

Is there a way that I can guarantee I'm paid for this job? Postage is expensive and I can not afford to fund his endeavor.

Thoughts? (And what's the most graceful way to turn this job down if necessary?)

Thanks,
Joe

 

[AP90]

Cant you just do the printing for the EDDM and he can take them to the post office himself and pay for the postage? That way you are only out the printing and not both?

 

[OffsetStorefront]

Cite his closing business and ask him to pay up front?

 

[jdr999]

Being a digital shop it wouldn't make sense to print this in-house. I usually farm jobs like this out to a trade printer who does the printing and mailing. So my cost would be higher than printing in-house. But it is another option..

I'm more concerned about the validity of payment. Checks can bounce, credit cards can be reversed (or stolen), etc. I have a feeling a large suitcase full of cash is not going to happen :-D

 

[MailGuru]

MMmmmmmmmm.......................

New customer stops in (you've never done business with him before).

Tells you he's going out of business (hard times, liquidating stock, etc.)

Wants you to extend him credit to the tune of $10,000 for a mail job with postage.


Mmmmmmmmm..........Let me think here.................

NO!

H-LL NO!

 

[PricelineNegotiator]

Being a digital shop it wouldn't make sense to print this in-house. I usually farm jobs like this out to a trade printer who does the printing and mailing. So my cost would be higher than printing in-house. But it is another option..

I'm more concerned about the validity of payment. Checks can bounce, credit cards can be reversed (or stolen), etc. I have a feeling a large suitcase full of cash is not going to happen :-D

$10,000 is only a small stack of $100 bills. Less than a ream of paper.

In any case, I would do exactly what Offsetstorefront says. "Hey dude, you're going to be closing your shop. I need you to pay up front because of obvious reasons."

 

[MailGuru]

$10,000 is only a small stack of $100 bills. Less than a ream of paper.

In any case, I would do exactly what Offsetstorefront says. "Hey dude, you're going to be closing your shop. I need you to pay up front because of obvious reasons."

That's not safe either.

What many businesses don't know is, if that new customer decides to file corporate bankruptcy, the court appointed bankruptcy trustee has the right to go back 3 months and demand that any vendors that were paid, refund that money in it's entirety. The trustee's main duty is to equally distribute whatever assets there are to the creditors. This eliminates "preferred vendors" from being paid their bills just prior to filing bankruptcy. The trustee will want that money back to be equally distributed among all remaining creditors.

If it were me, I would just walk away from the job

 

[PricelineNegotiator]

That's not safe either.

What many businesses don't know is, if that new customer decides to file corporate bankruptcy, the court appointed bankruptcy trustee has the right to go back 3 months and demand that any vendors that were paid, refund that money in it's entirety. The trustee's main duty is to equally distribute whatever assets there are to the creditors. This eliminates "preferred vendors" from being paid their bills just prior to filing bankruptcy. The trustee will want that money back to be equally distributed among all remaining creditors.

If it were me, I would just walk away from the job

Well maybe you can demand cash and that you will provide no receipt or invoice for said job.

 

[OffsetStorefront]

That's not safe either.

What many businesses don't know is, if that new customer decides to file corporate bankruptcy, the court appointed bankruptcy trustee has the right to go back 3 months and demand that any vendors that were paid, refund that money in it's entirety. The trustee's main duty is to equally distribute whatever assets there are to the creditors. This eliminates "preferred vendors" from being paid their bills just prior to filing bankruptcy. The trustee will want that money back to be equally distributed among all remaining creditors.

If it were me, I would just walk away from the job

Yikes.

 

[PricelineNegotiator]

Ask him for his personal cell phone and home address. You know, in case you need to pay him a visit.

 

[Santa]

I'd run not walk. We had a client who we had done business with for years. They owed us $18,000 and needed a $2,000 job done. We asked for payment of past due invoices as well as the $2,000 up front. Had no idea they were going bankrupt. They did a Chapter 11 reorganization 30 days later. The trustee clawed back the $20,000 that we did the legitimate work for. It was a big ad agency who to this day is still in business under a different name. Needless to say we got royally screwed as there was nothing left for the unsecured creditors.

Bankruptcy laws in this country are insanely unfair so run.

 

[jdr999]

Wow, that's some great information -- thanks all.

I would never have imagined that money would have to be returned in cases of bankruptcy. That's a deal-breaker right there -- not worth the risk.

The client hasn't followed up which is a good thing. If he ever does show what's the most professional / polite way to turn down the job?

 

[BigSi]

Print out this forum. Just hand it to him with an apology. He probably wont take the time to read it but if he does it's just all there in B&W.
ta Simon