Ed Gegen
President, Mount Vernon Building Center, Mount Vernon, Wash.
“Customers who don’t pay are always a touchy situation. It really depends on who the customer is and our relationship,” says Ed Gegen.
According to Gegen, any customer who is 30 days past due typically receives a “friendly” phone call. “That usually does the trick,” he says.
But if you are talking about run-of-the-mill non-paying, and ignoring every late notice stamp, then Mount Vernon Building Center turns up the heat.
Once an account has gone 60 days past due, a letter is sent out restating Mount Vernon’s credit policy, accompanied with copy of the credit application that was signed and agreed to by the contractor or builder. The customer is then given five days to respond to the letter by payment, a return phone call, or an in-person visit, Gegen says.
If no response is received, a second certified letter is sent stating that the amount owed will be pursued for collection via small claims court. “Usually this is the only action we need to take; the money appears,” says Gegen.
When the contractor continues to avoid Mount Vernon and the letter, the company goes after the contractor’s bond or moves ahead by scheduling a court appearance.
Gegen says Mount Vernon’s track record for getting its money back is better than 90%. “I live on the premise that the squeaky wheel gets the grease,” says Gegen. “If nothing is said, then the creditors who are also owed money get paid first, especially if we don’t stay on top of the client.”
