***PICB*** PRINTING INDUSTRY CREDIT BUREAU ***PICB***
WHERE'S THE MONEY?
PICB'S PERIODICAL DEDICATED TO MAINTAINING PROFITABILITY IN THE GRAPHIC ART INDUSTRY THROUGH GOOD CREDIT POLICIES
PRINTING INDUSTRY CREDIT BUREAU 
(847) 265-0400
ISSUE # 10
AUGUST 2012
CREDIT TIP LOGO

Did you know that business, much like war, requires strategy to be successful? One of the most celebrated books on strategy, The Art of War, was written by Sun Tzu over 2500 years ago and is still being used today. To quote Sun Tzu, "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." What was true then is still true now.  While there are a number of strategies listed in the book here are just a few steps that can be used to give your business an advantage.   

 

Step 1: "The Way." Understanding what your customer does to make a profit is crucial. What is the business plan for your potential customer? What steps has the company taken to ensure investor support?  Is the company clear on its product and distribution? By understanding your customer's path, you begin to understand the legitimacy of its product.  After working with different printers, I have noticed a trend surface within the direct mail/coupon segment of the industry. This is an advertising based industry that depends on advertisers to make a profit. If your customer says that it has a distribution network of 100,000 subscribers, but then continually only orders 20,000 copies on its work orders, something doesn't add up. While direct mail and coupon based businesses may not be the only culprit, they are an obvious source of revenue for many printers. Before agreeing to a substantial line of credit there must be an understanding of the actual revenue. Are these companies just supplying advertisers with their own advertisements, or does the company have a legitimate consumer base that allows for their advertising to be successful? By knowing "the way" your customer or potential customer obtains its revenue, your business will have a better chance at avoiding risk of loss.    

 

Step 2: "The Seasons." Is your customer's product affected during different times of the year? Will you, the potential creditor, have to be patient during the slow times, because other times of the year are more prosperous? By understanding when your client's product is sold, your company can determine the positives and negatives of dealing with a potential customer's profit, which may be erratic.  I have worked with printers that deal with pastry and baking companies specifically. When a credit manager is deciding whether or not to offer a line of credit, the business plan for the potential customer must be examined. Are the products designed for specific periods of time, like Valentines Day or Mothers Day? Does the company have a year long plan, or is it holiday specific? If your customer makes 90% of its profits between September and January how will your company get paid between February and August? Any deal between two companies should be a win-win situation. Knowing the seasons can determine whether a large line of credit can be a flop or a success.

 

Step 3: "The Terrain." Find out if your potential customer is a smaller mom and pop shop dealing locally, or a larger business with multiple locations nationally. Smaller businesses may be more susceptible to economic ups and downs, and it is important to know the local economy that the business is dealing in. Larger businesses with multiple locations require the same scrutiny, but there are more chances for revenue and for payments to be made on time if there are more markets in which your customer is operating. Obviously, regional sales limit the scope of repayment, while national sales broaden the horizon for potential profit. Knowing the scope of what your potential customer is capable of can help in determining the credit worthiness of any company. Learn about your customers clients. Who buys from them? Where are they located? Are there regional disturbances that may affect the proposed profit? Remember any business endeavor should be mutually beneficial. A big fish in a big pond will always mean more revenue than a small fish in a small pond.

 

Step 4: "The Leadership/Management." Who is responsible for dictating the company's agenda? What roles are the management responsible for? How is the leadership set up to ensure a profit? Enron, by all means was a successful business plan. The investors were there to set up an energy based business. Commodities will almost always be a successful enterprise if the investment capital is there, and the management team is trustworthy. Unfortunately, the management team for Enron was not trustworthy. The investors and employees lost millions of dollars in investments and income by the time the company folded in disgrace. By understanding the history of a potential customer's management, your credit team can more properly assess the chances for a successful partnership. It is important to look into the history of any management team. Most people will have had previous experience that is public information. By knowing who has done what within the business community your credit team will be equipped to make good decisions with your company's resources.

 

Sun Tzu may have written the Art of War more than 2500 years ago, but top military officials are, to this day, still employing these strategies. Protecting a nation is no more important than protecting your personal livelihood. Each and every business owner puts their blood, sweat, and tears into every financial endeavor. "We cannot enter into alliances until we are acquainted with the designs of our neighbors."   

 

Let PICB show you how to implement the elements of The Art of War and ensure the future success of your business.  

 

RESOURCES: PICB's web portal to government websites that provide real-time, free information such as business registrations, civil records, lien information and much more.

 

DUE DILIGENCE REPORTS: When you don't have the time to review the information provided by the customer PICB will do it for you. Our reports are done the old fashion way of 'hands on' extensive research while using the 21st century tools to maximize results.

 

RISKEE BUSINESS: PICB's free tool that allows our clients and members of the PIA family unlimited 24/7 access into our database to determine if a potential customer was ever placed for collection with our firm.

 

COLLECTION SERVICES: PICB provides quality collection services at affordable rates and is dedicated to the Graphic Art Industry.

 

For more information visit us on the web at www.picb-us.com or contact us at (847)265-0400

 

 DEWEY CHI'TING
LARSON  NY  August Dewey
ORIGINAL ARTWORK BY MARC.ART, INC.
mob5948@aol.com 
 
ASK AN ATTORNEY

 

Q:  What are the most common signs that a customer is not going to pay the bill voluntarily?
 
 
A: The customer has a spike in goods ordered well above what they usually get and no information as to why. People usually share good news.

 

The customer complains about something small, and usually petty and refuses to pay for the whole bill until that part is resolved.

 
Craig La Bree
Hobbs, NM
 
A: 1.  Your mail is returned.

 2.      Your phone messages are ignored.

 3.      Phone is disconnected.

 4.      Bounced checks.

 5.      Continuous turnover of personnel in the debtor's accounting

          department.

 6.      All creditors' calls are being referred to the debtor's attorney.

 7.      Mail is being forwarded to an address in Costa Rica.

 

Jay Umansky

St. Louis, MO

 

A: When the Debtor responds with a bankruptcy notice. When the Debtor sends a handwritten response claiming poverty. When the Debtor sends a validation request under the FDCPA, even though it might not be a consumer debt.

  

Douglas L. Brooks, P.C.

Atlanta, GA

  

A: 1) The phone is NEVER answered.

2) A dispute appears out of nowhere once the attorney gets the file.

3) A letter from a bank's attorney is received in response to your 

    demand letter. 

    These last three are not common, but a SURE sign.

4) You receive a check in response to your demand letter from a 

     closed account! 

5) You know from reading the paper charges have been filed 

     against your debtor.

6) You are the third attorney to handle the case.

     In lieu of an original signature, if that was the regular and usual 
     business practice between the parties.

  

Charlie Litow
Cedar Rapids, IA
 
A: Five Clues That Your Customer Is Not Going To Pay You

Most business people don't recognize the moment that an account they are selling to goes bad. Frankly, most business people don't know what to look for, even when the clues are right there, staring them in the face. The following list isn't meant to be the only red flags to watch for, just some of the most common ones:

  

1. Suddenly, no communication from your customer. After having 

   had a wonderful business and personal relationship for a long 

   time, with the customer regularly paying you find the customer 

   suddenly stops returning telephone calls and/or de-friends you 

   on Facebook/Twitter.

  

2. The new dispute on old invoices. When you approach your 

   customer on the overdue invoice(s), the customer now has 

   quality issues with the product sold, the price charged and/or 

   makes new claims of shortages.  If there has been no claim of any 

   of those made by the customer within a reasonable time after 

   delivery, what does that indicate?  The answer is; an 

   unwillingness or inability to pay.

  

3. Broken promises of payment. Often the creditor will approach 

   the customer to discuss the issues of non-payment.  One of the 

   ways the customer can further extend terms is to promise 

   payment "next week", "after a receivable clears" or a "payment to 

   coincide with the next shipment."  Broken promises can also take 

   the form of "I forgot to mail that" or "my Accounts Payable  

   person is/was on vacation".  A wary businessman will look at 

   these empty promises of payment as nothing more than smoke 

   screen to mask a cash crunch at the customer's place of business.

  

4. The C.O.D. check has been dishonored. Despite a Credit Hold 

    because of non-payment of older invoices, the Credit 

    Department might make the business decision to continue to 

    sell to the delinquent customer.  Arguably the parties need each 

    other, badly.  In an effort to get a large client back on its feet with 

    the prospect of future profit, the creditor might agree to new 

    sales, but only on a C.O.D. basis.   If that C.O.D. check bounces, 

    that should be the last business the parties do, ever.

  

5. The phone is disconnected and mail is returned. Although this 

    might seem more like common sense than a clue, even if you are 

    unable to establish any form of contact with the delinquent 

    customer, it might not be too late to collect from them.  

    Businesses might close but they don't disappear that easily.  

    Don't walk away from bad debt, try to collect on it.  Sue in Small 

    Claims Court if you don't want to engage a professional to 

    collect the debt for you.  You never know what might happen if 

    you take affirmative action.

 

 

Elliot M. Portman
R.T.T. & Portman LLP
Bohemia, NY

 

A: 1.   Failure to return calls or correspondence, which goes 

           along with the claim that the person you need to talk to is 

           not  in and will have to call you back.

2.       Any unkept promises regarding payment of meeting 

          time limits of providing any type of information.

3.       Claims that the check is in the mail, but it never arrives.

4.       Check finally arrives, but it is not signed or the amount 

          is wrong.

5.       You receive a check that is returned NSF. When you advise 

          the debtor they claim that there is a problem with their bank 

          and they are going to replace the check but never do.

6.       Continuing to ask for additional time because they are in the 

          process of obtaining a loan or they have a "new investor" 

          coming in shortly, which will take care of all of the debt.

7.       Multiple requests for the same documents to be provided 

         to prove what the balance due is.

8.      Other lawsuits are being filed against the customer.

9.      Suddenly, the customer begins raising problems and 

         objections to the job completed even though a substantial 

         amount of time has passed and only after you begin 

         pushing for payment.

 

Although this list is not all inclusive, it certainly does raise substantial red flags and should prompt immediate action in reference to collection.

 

William A. Rinehart

Rinehart, Scaffidi & Mathews

Milwaukee, WI 

 

 

 

 

THE GEEK SPEAKS: 

 

 

 

 MONEY TALKS. . . 

MAKE SURE YOURS ISN'T SAYING GOODBYE!

 

 

 

 

 

 

In This Issue
CREDIT TIPS
DEWEY CHI'TING
ASK AN ATTORNEY
KREDIT KARMA
Quick Links  



PRINTING INDUSTRY CREDIT BUREAU CONTACT INFO: 



ANDREA SCHLACK
PRESIDENT
andreas@picb-us.com

 

 

DENNIS ADAMS
VICE-PRESIDENT
COLLECTIONS MANAGER
dennisa@picb-us.com

 

 

RICK CRUZ
CHIEF RESEARCH 
OFFICER
rickc@picb-us.com


JANET DIENES
GENERAL MANAGER
janetd@picb-us.com

 

 

ROBBIE BURCH

DIRECTOR OF SALES AND SERVICE

robbieb@picb-us.com

 

 

 

   

KREDITKARMA

DON'T GET BITTEN TWICE

 ******************

UNCOLLECTED

JUDGMENTS AUGUST 2012

FOR A COMPLETE LIST

GO TO 

www.picb-us.com

  

 

  

ANDREW EPERI, INDIVIDUALLY AND D/B/A AFRIQUE IL

  

ALEX FINO D/B/ASF TRANSPORT SERVICES PA

 

ASSOCIATED AIR PRODUCTS

 FL

 

BERG PRINTING ENTERPRISES, LLC D/B/A MASTERPRINT

WI  

  

BLUE INK

 IL

 

CCMP D/B/A BERYLMARTIN
IN

 

CMY&K ADVERTISING

 NY

 

CMY&K PUBLISHING

 NY

 

DALE JASLOVE IND D/B/A HEALTHCARE CONSTRUCTION

 MI

  

FRANK FINOCCHIARO INDIVIDUALLY & T/A LBT SYSTEMS & LBT SYSTEMS INC.

 NJ

 

HI INDIA, INC.,

 IL

 

HIGHER STANDARD ENTERPRISES INC D/B/A I TOUCH PUBLIISHERS.COM
NC

 

HIP HOP WEEKLY
ENTERTAINMENT, INC
FL

 

HOME VIDEO STUDIO INC IN

 

HOMETOWN HEATING & COOLING INC AND RICHARD E FOX INDIVIDUALLY

 NY

 

INDIAN HILL SYSTEM INC AN IL CORP AND ROBERT KELLY D/B/A
IL

 

JILL MORGENTHALER FOR CONGRESS
IL

 

JIM WEEMS D/B/A
J PRINT SERVICES
ID

JOSEPH D RINDER INDIVIDUALLY AND D/B/A BELTONE HEARING AID CENTER

 NJ

 

KARRY MATHESON INDIVIDUALLY AND D/B/A MATHESON CUSTOM PRINT

UT

 

KENMAR STATIONARY

 NY

 

KRISTYS MOORE A/K/A KRISTYS WAGGONER D/B/A ORION PUBLISHING
CA

 

LESTER BAFIA INDIVIDUALLY AND D MEGA FORCE PRODUCTIONS, INC

 IL

 

LISA DOTE INDIVIDUALLY AND D/B/A G GRAPHICS AND D/B/A PRINT THIS

 IL

 

NORTHWEST 

BINDERY INC
MN

 

NEW YORK FURNITURE GALLERY, INC.

NY

 

PET ENTHUSIAST PUBLICATIONS INC
NE

 

PHILIP D CHRIST D/B/A GREAT IDEAS
NY

 

PHILIP BASILE D/B/A P&M GRAPHICS
NJ

 

PHILIP BASILE D/B/A MINK INC
NJ

 

PINATA GRAPHICS

 IL

 

POWER SPORTS

FACTORY

NJ

  

PREMIER PRINTING

IL

 

PRINT PARTNERS LTD

IL

 

REACH MARKETING

SOLUTIONS LLC

GA

 

RICK VETKOS DBA

BELTONE OREGON

OR

  

RODD MURPHY DBA

RODD MURPHY &

ASSOCIATES

NY

  

RON CARTER INDIVIDUALLY AND DBA SOUTH STREET JOURNAL

IL

 

RUMORS ON GRAND INC

A DISSOLVED CORP & KATHLEEN M VOGT AKA KATHLEEN TEWS

IL

  

SANDESH PUBLICATIONS, INC

IL

 

SANDESH PUBLICATIONS, INC. & HEMANT BRAHMBHATT AS GUARANTOR

IL

  

SEARCH 1 AMERICA F/K/A/ LUX  PREMIER, LUX PUBLICATIONS LLC DBA LUX PREMIER

IN

 

SHE SKIN LLC

IL

 

SLICK ROCK PUBLISHING

NM

 

STEVE BONICA DBA ROMANIAN TRIBUNE

IL

  

SY LENG AKA LENG SY DBA ECO SYSTEMS AQUARIUM

CA

 

THE WATER PEOPLE.NET

CT

  

THREE ANGELS PRINTING 

SERVICES, INC.

IL

 

TUMBLEWEED

POTTERY

NC

  

VILLAGE FARM STAND, INC DBA VILLAGE MARKET OF CALUMET CITY

IL

 

VINCENT

ALEXANDRIA

PARTNER OF

WE MUST XL

MO

 

VOYAGER

ENTERPRISE, INC.

IL

 

 

WINDY CITY

BUILDING 

MATERIAL, INC

IL

  

ZOOM GRAPHICS,

INC.

IL

 

 

 

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