collecting payment - some questions

dogwood

So just curious-- how do folks here handle payments for shoots? And I'm talking small, one-on-one portrait type shoots, not commercial clients.

I require a deposit paid through my website to reserve a shoot date. So far, that's worked fine.

Then right after the shoot is done, I have the client pay the balance due before they leave. So far, that's worked fine too.

But last week, I had a client who told me (after the shoot, of course) that she didn't have cash or checks with her. Can you imagine if you pulled this at a restaurant after eating your meal? Okay, so being a nice guy, I offered to bill her on-line. But her credit card was declined.

She told me she wasn't computer literate and couldn't figure out the billing (even though she paid the deposit through this same method). Okay, so I asked her to mail a check or drop off the payment. A week later, she still hasn't paid. I just called her and she said she's having a family crisis and hasn't had time to pay.

Now of course I haven't given her the proofs or files from the shoot, but all that aside, how in the world do you collect from someone like this without resorting to legal threats?

What do others do in terms of collecting payment? Make the client pay in full BEFORE the shoot? So in this case, I should have said, "Sorry, no checks, no cash, we're not shooting until you pay in full."

Any comments appreciated.

ChatKat

Not too hard
I require a 50% deposit for reserving a date paid in advance that is non refundable and allows for one time transfer with 48 hours notice with the balance due at the time of the appointment; I am thinking of upping it to 100% payable up front.

dogwood wrote:

So just curious-- how do folks here handle payments for shoots? And I'm talking small, one-on-one portrait type shoots, not commercial clients.

I require a deposit paid through my website to reserve a shoot date. So far, that's worked fine.

Then right after the shoot is done, I have the client pay the balance due before they leave. So far, that's worked fine too.

But last week, I had a client who told me (after the shoot, of course) that she didn't have cash or checks with her. Can you imagine if you pulled this at a restaurant after eating your meal? Okay, so being a nice guy, I offered to bill her on-line. But her credit card was declined.

She told me she wasn't computer literate and couldn't figure out the billing (even though she paid the deposit through this same method). Okay, so I asked her to mail a check or drop off the payment. A week later, she still hasn't paid. I just called her and she said she's having a family crisis and hasn't had time to pay.

Now of course I haven't given her the proofs or files from the shoot, but all that aside, how in the world do you collect from someone like this without resorting to legal threats?

What do others do in terms of collecting payment? Make the client pay in full BEFORE the shoot? So in this case, I should have said, "Sorry, no checks, no cash, we're not shooting until you pay in full."

Any comments appreciated.

dogwood

ChatKat wrote:

I require a 50% deposit for reserving a date paid in advance that is non refundable and allows for one time transfer with 48 hours notice with the balance due at the time of the appointment; I am thinking of upping it to 100% payable up front.

Okay, but a deposit doesn't prevent a customer from not paying the balance at the end of the shoot. That's the main issue I'm having with this client.

jdryan3

Not to minimize this issue and the pain it is causing you, but deadbeats are a fact of life. The reason they don't pay doesn't matter. Make sure that the rates you charge include some percentage (2, 3, 5%) to cover doubtful accounts. Even better, take that percentage from those that do apy and set it asdie, maybe in a special savings account if you aren't into keeping accrual based accounting books.

On the front end, you can include some sort of payment requirements for services where you don't give them the actual product. That way they know they owe you something for your time no matter what, plus you have something to stand on if you desire civil action.

ChatKat

Spoken like a ral accountant..
Dave,

Well said - I charge 50% for the appointment time up front...no show..no loss to me really. If they came to the session and I shot it but didn't collect the payment then, they wouldn't see any photos until payment was received which is why the 50%. My time is paid for before any shooting takes place. The other 50% is my profit and cost of processing time and product. That's for portraits. For weddings, it's all up front or no shooting.

Yes, there are always deadbeats and those who think they are getting away with something. The key is not to let them. Unlike working in accounting (my other business) where by law I can't hold back a client's records, only the finished product, because of payment. In photography, they can't see or have anything until they've paid in full. I do chimp with them a little (not all images - only one or two of the best)at the end of the session so that they have an idea of what's to come. I have a unique set up anyway - my studio is next door to my accounting practice.

uote=jdryan3]Not to minimize this issue and the pain it is causing you, but deadbeats are a fact of life. The reason they don't pay doesn't matter. Make sure that the rates you charge include some percentage (2, 3, 5%) to cover doubtful accounts. Even better, take that percentage from those that do apy and set it asdie, maybe in a special savings account if you aren't into keeping accrual based accounting books.

On the front end, you can include some sort of payment requirements for services where you don't give them the actual product. That way they know they owe you something for your time no matter what, plus you have something to stand on if you desire civil action.[/quote]

dogwood

Thanks for the responses. This is useful information.

I always get model releases signed before I start shooting and I'm actually thinking of asking for payment of the balance at that time too. That way, if someone doesn't have the money, the shoot is canceled and they pretty much can't complain since it appears they weren't going to pay anyway.

Of course, I'll make this policy clear when booking a shoot. My payment policy will go from the restaurant model where someone pays after eating to the buffet model where you pay before eating.

urbanaries

dogwood wrote:

Thanks for the responses. This is useful information.

I always get model releases signed before I start shooting and I'm actually thinking of asking for payment of the balance at that time too. That way, if someone doesn't have the money, the shoot is canceled and they pretty much can't complain since it appears they weren't going to pay anyway.

Of course, I'll make this policy clear when booking a shoot. My payment policy will go from the restaurant model where someone pays after eating to the buffet model where you pay before eating.

I've had clients balk at the thought of paying me the entire balance (weddings) before I've even shown up to do any work. In this day and age, people do still get stiffed by "freelancers" and one has to be sensitive to that. In most other industries it's half down for upfront materials, and half upon deliverables. In our case, deliverables would be proofs and/or albums, so I can see their point...showing up to the shoot is at the beginning of the project cycle, not the end.

That said, I've had some issues with payment lately. One in particular didn't pay the balance before the wedding, and I don't bother the bride with money issues on her big day. expecting to get a check as I pack up. Didn't get it until 3 weeks later, after I made it clear I wasn't starting on the edits until the balance cleared. I think a friendly reminder of the terms/balance due a day or so before the shoot would help, with spelling out of what happens should the client not remit when they are expected to. Good luck!

samc

pay now
Payment is due in full before I take any pictures. No money, no photo shoot. For smaller shoots, it's usually done when I arrive at the time agreed upon.

ziggy53

dogwood wrote:

...

I require a deposit paid through my website to reserve a shoot date. So far, that's worked fine.

...

The first thing to mention is that instead of a "deposit" beforehand, you should collect a "retainer" that is explicitly mentioned in the contract as "non-refundable". A deposit, by legal definition, is a refundable entity. If you try to make a deposit non-refundable that is a legal non sequitur. A court may rule in the client's favor just for the confusion.

I agree with what has been said about some clients just trying to take you for whatever they can. The whole reason for the 50% retainer is to make sure that you don't wind up empty handed.

If you know that the customer has means and assets, you can attempt recovery against the satisfaction of the contract. If the client can prove exceptional circumstances you probably won't win, especially if you have not delivered final goods and/or services.

Best strategy is just to move on and don't spend any more time on this customer.

sweet caroline

Mail an invoice with a due date. Politely state in your invoice that you can begin processing photos upon receipt of payment.

Caroline

quark

Most people are honest, I run into this rarely. Maybe you could gently offer to let her pay you in a few installments, but make it clear your processing will start when the full balance is paid. My guess is she would be so embarrassed that you think she is tight on cash that the money will show up soon.