Yesterday, I promised to explain how I handled those three difficult payment situations. So, here’s what I did:
In the first situation, everything came to a head the day before the event. My client was simply unable to come up with the money he owed me. I was angry. I was also disappointed in myself for ignoring quite a few warning signs. I wasn’t sure what to do, but eventually I decided to talk to my client; I knew I wouldn’t get paid until I opened up the lines of communication between us. At the time, my company was very much a small business. I realized that I wouldn’t be able to write paychecks for my employees if my client didn’t pay me first. When I explained this to my client, he felt terrible. I did do his event the next day, but we also set up a payment plan. Over the course of six months, I got every single dollar I was owed plus interest.
In the second case, I really believed I had done a great job. But, unfortunately, my client did not feel the same way and wanted some of her money back. This was a very difficult situation. I met my client at her home and let her vent for nearly an hour. Finally, she ran out of steam and couldn’t think of any more complaints. I told her that I was very sorry she wasn’t pleased with my work. I then went onto explain that while I couldn’t reimburse her, I did want to make it up to her. I told her that I wanted to send her flowers once a month for the next six months. Not only was she very happy with this solution, but she also continued to use my services for many years there after. Sometimes, clients just need to get their frustrations and disappointments off their chests, and it’s our job to let them do so without getting defensive. The best thing I did in this situation was to just listen.
In this last situation, a vendor I had hired did not meet my client’s expectations. My client wanted his money back, but my vendor refused to even listen to my client’s complaints. Unsurprisingly, client held me responsible and was even threatening to sue me. This situation cost me quite a bit of money. I had to reimburse my client, and, in the process, I learned how important it is to hire vendors I know well and trust implicitly. Also, I now make sure any vendor I hire for a client has his own contract with the client; that way, if something goes wrong, it’s between the two of them.
Questions for you: Have you experienced any similar situations? How have you handled them? Personally, I think that lawsuits are almost always a waste of time and money. If you’re a wedding and event planner, do you have clients pay vendors directly or through you?
After many years of trial and errors, I finally established a payment plan for all clients, and, most of the time, it works extremely well. Later this afternoon, I’ll post the details of my plan. Please check back!
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George Bernard Shaw once said: “You see things and say, ‘Why?’ But I dream things that never were and say, ‘Why not?’” That quote embodies how Preston Bailey approaches every event.
Heather
May 19, 2011
I love how you handled the client that was unhappy with the event. Listening is so important to handling client relationships.
warren
May 19, 2011
Thanks for posting this. I think that one lesson implicit in your article is that good, honest two way communication or, sometimes, just listening with a truly open mind are key to gaining trust (and, of course, payments and/or resolving issues and healing bad feelings).
Additionally we do have to take responsibility when we’re the captain of the ship and it springs a leak somewhere because one of our vendors screwed up. It’s our crew. We do need to protect ourselves through having clients sign individual contracts with different vendors; still, when we bring in an incompetent vendor we bear some responsibility.
Fundmentally I sense that the real issue is one of respect for and caring about our clients, even when we’re convinced that we’re blameless and the client is totally wrong about everything; we still need to respect them as a human being, and because our very career is predicated on serving others—on bringing them a few hours of happiness in a world where happiness can be very elusive. If we fail in this regard it doesn’t really matter much if the event was featured in all the right blogs. Yes, we need to get paid and clients have an absolute duty to honor their contracts; and…yes, we need to remember that actually caring about these same clients, rather than seeing them primarily as an income stream, is paramount to our own happiness. We flourish when we make others truly happy, in business, and in life.
Victoria
May 19, 2011
Thanks, I appreciate hearing these stories and resolutions.
Meliana
May 19, 2011
Hi Preston, thanks so much for sharing this matter…
I just had a bad situation, but not in big scale like yours. I’m florist and I just have complained of my flowers, since the color they requested is not available on the day but i forgot to inform this issue before delivery.
So the next day, they complained why the flowers are different. Im very sorry to have those missed things. Sending flowers as an apologize would be a great idea.., will try to do that.
And usually, clients pay vendors through me, but sometimes if the vendors are my client’s friend they will have their own contract between them..:)
angela
May 19, 2011
Bravo for this topic! I have been thru similar situations and the subject of money is always tough! I love your solutions.
Thank you for your keen and expert advice!
Signed,
A wedding planner who has seen it all!
design elements
May 19, 2011
great, Preston!
Michelle Dunn
May 19, 2011
I agree, listening, communicating and offering a solution can go a long way with someone who owes you money. Many times they avoid you because they don’t know what their options are such as making payments rather than having to pay the whole balance. It has been my experience that if they don’t have all of the money, they avoid you. Once you let them know you will work with them, they are fine and normally make the payments.
Shari Green
May 19, 2011
Wonderful post. Interested to see the payment plan..Informative blog! ( as usual)
YOUR NAME
May 19, 2011
love your beautiful heart
Michele Birkner
May 19, 2011
YES … my first real year going solo and it was for a friend, she didnt do her part with paying the vendor and b/c I was the planner they came after me. That taught me going fwd 1) all vendor contracts are held directly b/w the client and the vendor 2) any final payments are to be handled directly b/w the client and the vendor – the only thing I will do is pass out thank you cards (tips) the day of the event. I love how you handled each case here, especially with you sitting down and just listening. Ive been in customer services since ’94 and just the thought of having someone belt out on you can hurt but to just allow them to say whats on their mind is actually better in the end a soft answer will take the wrath away =:)
Atosha Barboza
May 19, 2011
In situation #1 right now! I know the only resolution is communication. Will let you know of the outcome on Monday.
Angela
May 20, 2011
Found this article very useful. All advise given were accurate and the best. I learn so much each time. Thanks
Kieffer
May 20, 2011
Wow I wish this would have been up last week, word for word the last situation described something we went through recently, we suggested a vendor and ended up having to refund every single penny to our client as she was unhappy. The vendor quickly denied any wrongdoing and would not even respond to the client. Very good suggestions for handling vendors.
Savannah (Pearls and Pages)
May 20, 2011
Excellent advice and personal experience, Preston. Thank you so much for sharing. I was bursting with curiosity!
Have a lovely weekend and take care!
Hugs from Berlin,
Savannah
The French Bouquet Blog: http://www.thefrenchbouquettulsa.com/blog
Nishaka
May 22, 2011
Great Blog. I have experienced a negative situation with a vendor that I no longer use. Professionalism and doing the right thing is very important to me. This particular vendor had done well in the past, but due to their continued growth as a business it seemed that they could not handle the demand and the quality of service diminished. Three situations happened and I said no more. Two out of the three I felt like I was able resolve the issues for my clients really well.
I do have my clients sign contracts directly with vendor and pay them directly. I gather the contracts for them, review them in detail with highlights of things to be aware of, and then have then sign them. I keep copies of them in the file for the client and make sure they get a copy. I do not sign any vendor contracts.
Cathy
May 23, 2011
Hi Preston,
Thank you for this post, it confirms my recent practice of asking for 50% of the estimated total when I hand the contract to my client. I have met very little resistance and will continue to make this request part of my consultation.
I am new to reading your blog and must say I have learned so much both creatively and educationally from someone I’ve admired for a long time.
Coretta's Elegant Events
May 26, 2011
Great insights! I appreciate you sharing them. I definitely have my clients sign individual contracts with vendors and pay them directly.
CANDY
May 31, 2011
I definitely have all of my clients sign individual contracts with each vendor. Life as an event planner is much easier this way. What I have been running into a bit of trouble with is payment. So grateful you are touching on this sensative subjec. I’ve been planning events as a hobby for 10 years and about 2 years ago decided to turn it into a business. I would like to have a payment plan (can’t wait to see your next post) but I’ve been charging by a percentage of total cost and sometimes, in the end, clients will go over/under their budget. How do I work around that? smh
mia
July 26, 2011
Your blog is awsome, thank you for your generous advice and guidance.