DealersEdge Professional Forums

I AM LOOKING FOR SOME INPUT REGARDING WHOLESALE ACCOUNT PAYMENT. IF AN ACCOUNT IS PAST DUE DOES THE PARTS MGR MAKE THE CALL OR DOES THE RESPONSIBILTY LIE WITH THE ACCOUNTING OFFICE.
MY PARTS MGR THINKS THAT ACCOUNTING SHOULD DO IT.
MY OPINION IS THAT THE PARTS DEPT SHOULD DO IT IN CASE LACK OF PAYMENT IS DUE TO RETURNS OR SOME OTHER KIND OF PROBLEM.

THANKS

I believe the parts manager should call even though I find it very uncomfortable. Fortunately our accounts receiveble lady seems to love collecting money so she makes the calls here. And she is very good at it.
If there are any return concerns she contacts me and I check them out.

Joe R

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Accounting office should make initial call or calls, then turn it over to the PM if needed.

Often times smaller accounts have a cash flow problem and need some special handling to help things along. The accounting office staffers often lack the finesse for this kind of thing.

There's a big difference between a "slow pay" and a "no pay". These situations require dfferent handling, and sometimes swinging the axe is not the answer.

Anyhow, what with some of these outside shops anyway? Sheeesh....in most cases, if they'd just send a *partial payment* on a *regular* basis, there would seldom be any ill will.

Cheers,
Doug

RECEIVABLES CAN TURN INTO A BIG PROBLEM IF YOU DONT STAY ON TOP OF THEM.I USE THE GOOD GUY(PARTS MANAGER)MAKING THE FIRST CALL, BAD GUY(ACCOUNTING) APPROACH.I USUALLY LEAD IN WITH "YOUR ACCOUNT WAS MENTIONED IN OUR RECEIVABLE MEETING THIS MORNING AND I JUST WANTED TO BRING IT TO YOUR ATTENTION,ASK IF THE PAYMENT HAS BEEN MAILED AND IF NOT, WHEN WE CAN EXPECT IT.IF IT'S A BODY SHOP, WHICH IS USUALLY THE CASE I TRY TO CONVEY TO THEM THAT AS A PARTS MANAGER I UNDERSTAND ABOUT INSURANCE DRAFTS AND WORK IN PROCESS BUT MY ACCOUNTING DEPT IS NOT SO UNDERSTANDING.IF I FEEL LIKE I'M GETTING THE RUN AROUND I PLAY THE ACCOUNTING CARD AND MENTION TO THEM THAT THEY(ACCOUNTING) HOLD THE SWITCH TO THEIR ACCOUNT AND I WOULD'NT WANT THEM TO BE PLACED ON CREDIT HOLD. THIS USUALLY WORKS BUT IF NOT MY A/R MANAGER TURNS UP THE HEAT.

WHOLESALE IS BUILT ON RELATIONSHIPS AND THIS IS YOUR PARTS MANAGERS CUSTOMER,THEY ARE IN A BETTER POSITION TO DEAL WITH THEM.

I have always handled my Wholesale accounts from beginning to end.Run the receivables schedule every Monday morning, review over coffee and start making those phone calls.

One key is to make solid initial calls to screen your customers. A good ear to the ground in your local community can save you a lot of grief when payments come due. Even in the largest of metro areas, if you make enough initial calls someone will let you know rapidly if this customer is inclined to go through slow payment periods, or even worse..if independant body shop has habit of storing up parts to attempt to dump back a couple of months later.

As a manager, I feel it is your responsibility to manage your entire business. As if your independant. I source customers, heavily screen their references, give copious notes to the front office to set up account..weekly run the schedules and personally chase the slow pays. By doing so..I have saved some wonderful customers who sincerely had some legitimate problems . I have also lost good customers in the past at the hand of a $7.50 an hour office person sans customer relations polish and the personality of a pit bull. Lesson learned. This type of personal contact enables me to keep in touch with my customers on a personal level and to know when a pit stop with lunch and conversation can provoke a payment with no hard feelings.
All dealerships operate somewhat differently in this vein..but I have never subscribed to dumping on the office what I create as potential liability.