A not-so-brief opinion on this thread:
Gerry, Rex, and others who have advocated “taking the lumps”, your
point is well made and should be taken as experience talking.
However, I’ve lost thousands of dollars in the past because a few
well-known dealers or merchants decided they were above acceptable
business practices- namely, honoring their agreements and paying
their bills. I worked for one diamond broker/retail jeweler who
delighted in ordering from small local suppliers and artisans, then
"losing" their invoices for months at a time. This man was actually
proud of his ability to thwart his creditors! He tried the same
tactic with me as a supplier after I ceased working for him, and
then told me that he would “write me off” as a disgruntled former
employee. I referred him to a collection agency with a copy of my
invoices, and they collected 60% after a few months; the matter was
never “taken public”, but the agency DID report to the major credit
reporting agencies. This same jeweler was later exposed by an
undercover news reporter for all sorts of rotten business dealings
with his retail customers. Now here’s the rub: This business had been
founded in the 1920’s, and this man, his father before him and his
son were well-known in local circles for their history of screwing
over everyone in their path. He also had a chain of stores, and
advertised heavily on the local major twenty-something radio
stations, so his business was constantly gaining new customers and
therefore his main suppliers couldn’t afford to ignore him-
regardless of how badly he treated his other creditors (namely,
smaller and more specialized vendors who sold one-of-a-kind pieces or
custom casting/lapidary services). He rarely messed about with his
larger suppliers such as Stuller, Southeastern, Swest, Seiko, Rolex,
etc., but then again he knew that they wouldn’t restrict his trade
credit because he had late invoices with other suppliers who didn’t
have the ability to report him.
The very sad part of this whole story is that they made a very good
living for multiple generations on the backs of their smaller vendors
who made up approximately 35% of their sales, and there was our
industry’s unspoken rule of "maintaining decorum " that they used
very much to their advantage. Eventually their greed brought them
down when they began openly ripping off their retail customers, and
they had become so slippery and arrogant in their dealings with
everyone that it did indeed take a public exposure to finally get
this man out of the business. The only way his son stayed in business
was to publicly distance himself from his father’s former business-
and he had a major hurdle to overcome due to his past associations.
Only I and a few other local artisans ever collected on money owed to
us, and only because we used the same tactics that the big guys use:
charge interest on unpaid balances and get a professional collection
agency after them- it’s hard to get new credit when you’re being
reported to the Big Three as well as JBT by a legitimate and
reputable collector. These days, most companies that extend terms to
their customers review their credit files periodically and just might
revise their terms if they see negative activity on that report.
There’s nothing wrong or unethical about it- it is a right and a mark
of a responsible businessperson who takes care of their bills and
makes sure the money they are owed is collected.
Yes, it’s a hallmark of good faith to be understanding when there
are the very occasional tough times but many times there is a pattern
with these folks- it’s very similar to the thread of galleries
closing without returning or paying for their consignment
merchandise. If you couldn’t pay your power or phone bill, then it’s
possible to arrange for a payment plan, but if you accept the service
and then claim you never received it and refuse to pay (which is as
ridiculous as some of the claims which are presented to us as
artisans sometimes), you’ll soon be without that which must have to
conduct your business. Public exposure is best left up to those who
have very little invested in the situation (ie: a reporter or an
investigator), but if you are owed money you have the right to
persue every reasonable method at your disposal to recover it. Your
creditors would do the same thing, and it would be an emotionless
part of doing business- an unpleasant one to be sure, but still very
necessary.
Notice that I’ve named no names- this happened a long time ago, I
got paid because I wouldn’t roll over and take the loss. and their
"karma" nailed their patoots to the proverbial barn door several
years later anyway- but I made sure I got paid for my goods via
acceptable methods available to us all.
Cheers
Clyde