Is there a lawyer in the house?

WillB said:
What type of written agreement do you have? As usual, it's not until we have drama do we realize we probably should have better contracts and paper work. You might want to at least go 50% upfront and 50% on completion of a project policy which is a common approach giving both parties risk sharing and such. You could also warn him in writing that if he does not pay his bill by X date, option 3 is how you plan to recoup the loss. That way again, you have a paper trail and gave him appropriate warnings as the the outcome of not paying for work done. I don't make scabbards, but BTDT as far as your situation and learned the hard way. Now, if I know them it's the 50/50 deal, if not, 100% upfront. Don't like it, use someone else. ;)
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As you say almost no paperwork. It has worked for nearby 20 years... Until it didn't.... Just never had anyone pull this stunt before.
 
Triton said:
Do you mean ask for payment up front? I would never do that when hiring a custom knife maker... There are too many cases of good guys gone bad..
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I`m not really in the knife business so I could not tell about customs in that field. But it would be certain that the customer would have to pay at least 50% on order and the rest on delivery or it`s a no go. when I sharpen knives, I check them I make my price the customers pays then I call him back when the knives are ready, this way I don't end up with abandoned knives of all sorts because the customer realized he was paying 5$ to sharpen a 8$ knife and I was always ending forced to make a "deal" in the end loosing money each time.

Now I make them pay Upfront, my reputation is very good with kitchen and hunting knives I have less customers but I`m always payed. I do this as a hobby so the situation might not be a good comparison for you. But I think that all is based on that. Once you established your reputation people will pay you upfront with a smile on their faces. But it means honoring your engagement and face the music when you screw up. I once ended replacing a high-end chef knife because the thing slipped of my hands.

But your situation is more complicated then that. I would take the time with a lawyer and an accounting professional to establish a base contract that engage your customer and you protecting both parties in case of litigation. Just to make sure nobody could do that again.

You don't have to pull the contract on every sales, just new customers and the ones you feel it should, Known good customers don't need that.
 
I don't know - after 20 years of smooth operatin' and ALWAYS with you in possession of your client's property, the only issue I'm seeing here is one guy getting in too deep.

The only rule I think that needs to be well established is: NO KNIFE RETURN UNTIL FULL PAYMENT FOR SERVICES RENDERED. Now - this places the fair burden on you to be very clear and deliberate with your communications as regards to WIP and providing detailed finished photos at the end of the process so that your client is aware of what they are actually buying. I would - as a client - ask for and expect an accurate estimate of the completed costs.

If you have a web site or the like with a gallery of finished product and/or a price list based on basic criteria, the client knows, going in, what to expect. Sounds like you've been doing it right for a long time. I vote that you don't allow this one incident to turn you hyper vigilant. Vigilant and honest is plenty good enough. In the meantime keep talking to this one hold out and make certain that you communicate in writing. Sooner or later, one way or another you'll get your money for this project. Have fun. My 2¢ ;)

Ray
 
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Thanks guys, lots of good advice here. I will not let this one guy ruin the whole thing. Thanks for reining me in.
 
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