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PRO Group, Inc.

Goodwill Debt Collection
The process can be painless with the
right approach
BY PETER RENTON

Debt collection is a good way to make friends. No, this isn't a misprint. It's a fact that more than almost any other customer interaction, the attempted collection of past-due bills can create goodwill. Or, as is too often the case, enemies can be made and bills can remain uncollected. It's all in the approach. When discussing debt payment with a customer, you enter a highly personal and vulnerable arena-in many ways as sensitive as confiding in your physician about private health matters. Sometimes, the circumstances create shame and embarrassment. Yelling at or talking down to the person can shut off communication totally. Once this happens, your chance of collecting that debt decreases substantially. Customers who are treated indifferently or rudely will most likely pay up and move on, or become totally unresponsive. Conversely, a respectful attitude-even if the message itself is unpleasant-can go a long way toward gaining the customer's trust and cooperation in bringing the account current and maintaining a timely payment record in the future.

So, when the time comes to discuss late payments with a customer, first adopt a collaborative "chairside manner" and attempt to establish a friendly dialogue. Armed with the right tone of conversation, follow these general guidelines:

1. Diagnose what's going on behind the scenes that might be contributing to the problem. Don't be rude, don't be pushy-just try to find out what's what. While you'll often get "pat" responses, e.g., "the harvest isn't in yet," there can be many other contributing factors that make a slightly difficult payment problem seem like a massive one. Listen carefully not just to what's said, but how it's said. Often, fear and anxiety about matters unrelated to your bill are contagious and have infected the entire bill payment process. By getting clued in to the "problem behind the problem," you may improve your chances of quick resolution. If it's truly a harvest-related issue, you'll at least know what your likely time frame for payment is. But, if there are complicating factors, you may be able to resolve the late-payment problem with some "creative budgeting." Work with customers to make your payment terms fit logically into their ability-to-pay plan.

2. Set up a healthy ongoing payment regimen. To help prevent recurring late-pay problems, use this opportunity to establish some type of budget financing. Lorraine Anderson at Minnesota's Southern Valley Co-op recommends payment plans for two types of customers. Agronomy clients are encouraged to seek financing through banks or government grants and assistance programs. Home heating fuel clients are offered an even payment plan from August through June. July is sign-up month and the time for reconciling existing accounts (comparing actual usage charges against the amount paid to date). All accounts are checked again in January for any necessary adjustments.

COMPLETE STORY

Battle Plan
Fleet Supply Big R has a Strategy to Succeed Against Home Center Invasion
BY ADAM KING

The construction continues unabated directly across the street from Fleet Supply Big R in Kokomo, Ind., but the familiar green and yellow Menards sign has been staring at the 39-year-old farm supply retailer for months. The store behind the sign edges ever closer to its finished form. Opening day is likely just weeks away. But as the executives of Fleet Supply Inc. gather to discuss the success of their eight-store Big R chain, there is no panic or worry in their voices when talk turns to the big box. They fully expect the home improvement giant to take its share of the market, much like Lowe's did when it opened in the southern part of town a few years back. But there is a market that the big boxes can't and won't service.

As a specialty farm retailer for close to 40 years, Fleet Supply has the knowledge and experience to keep that market its own. The company's competitive strategies provide lessons any farm supply retailer can apply to his or her market situation. Fleet Supply takes care of its customers' needs by bringing in top-quality merchandise and finding the niche areas that give its customers a true destination shopping experience.

The Big R stores also keep their competitive advantage by focusing on education at the corporate level. Buyers and managers routinely visit distributor markets and the National Hardware Show in Chicago to garner new ideas and keep up with the latest trends. By breaking down the barriers between the purchasing and operations sides of the business, Fleet Supply has become more flexible in bringing new items and ideas into fruition from both company buyer and customer viewpoints.