How Many Licks Will It Take . . .?

November 2013

 

By:  Vin Ayden, Senior Risk Manager
Printing Industry Credit Bureau
[email protected]

 

In the iconic 1980’s television commercial for Tootsie Pop, a little boy asks Mr. Owl, “How many licks does it take to get to the Tootsie Roll center of a Tootsie Pop?”  Mr. Owl lands on the number “three” after biting the Tootsie Pop off its stick. 

So how many licks would it take to destroy your company?

A two-pronged strategy may make you lick-proof!

The first part of the strategy calls for due diligence on all new customers and periodic due diligence on existing customers.  Successful companies know this “cost” ultimately saves money.   For example, a recent due diligence report saved a member from doing business with a company that has a $500,000 judgment lien filed against them and numerous other judgments totaling over $500,000.  This predator’s broken promises led to the failure of three respected companies that could not survive the “licks”.  This Tootsie changed names four times to hide his past dirty deeds and continues to prey on unsuspecting companies under yet another name. 

What was the “cost” to avoid this scoundrel?  $50.

Due diligence helps avoid problems, but what if you’ve already been “licked”? 
Answer: Employ the second part of the strategy --collections. 

Successful companies engage skilled, professional collection agencies immediately to recover from financial “licks”.  They understand the critical importance of dealing swiftly and efficiently with non-paying or slow-paying customers.  They know failing to do so erodes cash flow and profits. The longer a problem lingers, the more costly it becomes.  If it becomes recurring, it can cause catastrophic, irreversible losses.

A seasoned collection professional can help solve the immediate problem of non-payment while identifying longer-term strategies to prevent future loss.  A good agency with industry knowledge and finesse in handling sensitive collection matters may help salvage relationships that can still be profitable when handled properly.  Rapid engagement is key to putting a bad experience behind you with the smallest loss. 

A perfect example of this second prong of the strategy is a recent PICB case involving the recovery of a high 5-figure debt for a local member. The member failed to perform both due diligence and an investigation of their customer by accessing Riskee Business, PICB’s free on-line database of collection claims.  Had they done so, they could have prevented 100% of their problems by insisting upon cash.  Instead, they suffered the first and second lick; PICB prevented the third and fatal lick by recovering their loss.  Their customer knew PICB’s passion for protecting members.  When confronted with the reality that they either pay or suffer further legal consequences, they RAN their full payment over to the printer. 

So don’t wait to be licked to take action; make a call to PICB today.    

 

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5250 Grand #14-122, Gurnee IL 60031-1877
Phone 847-265-0400
Fax 847-265-4377
www.picb-us.com