Here's Another Idea For Bad Times

Some years ago....I was talking to my Veterinarian as he was checking over my dog. He asked me what I did. I told him I was an "Idea Guy" where I helped businesses "increase their business or their profits".

He told me he had a LOT of delinquent accounts and didn't want to turn them over to a Collection Agency because they charged 50% of the bill.

I told him I'd get back to him.

This was Pre-Google days, however...in my local phonebook was a Category of "Collection Agencies".

I found a small biz listed and went to their office. Found a 1-owner biz with 2secretary/assistants. It happened I knew the owner from our church. I told him my Vet was having a problem collecting from some of his accounts and I was doing some research for him.

He told me that he normally charges a percentage of each account HOWEVER, he said that most of the time all he does is send out 1 to 3 letters with his Letterhead....and that the very fact that a "3rd Party KNOWS" the person is not paying...is a "Powerful, Psychological" tool.

He called it "3rd Party Influence"....and his "3-Letter" series were "Pre-Collection" letters.

And...he told me he'd be willing to sell me his "Pre-Collection Package" for $500 because he was going into "Hospital Collections".

So...I started up a "Pre-Collection Agency" where I put together a 3-ring Binder with 100 "Start" Cards for which I charged $1495. My clients I sold the "Pre-Collection" progam to would tear out a "Start Card", fill in the delinquent account's info and mail to me.

When I received a "Start Card" I would mail the 1st Letter....and the other 2 in 10 day increments. My client would call me when payment was received so I wouldn't have to send the other letters.

Over half of those receiving the 1st Letter....would pay. Again, because a "3rd Party KNEW of their delinquent bill".

Because payments went directly to my clients (I provided envelopes addressed to my clients with each letter)....I wasn't actually collecting any monies.

The same program could probably be sold today. MANY businesses and professionals have delinquent accounts.

Don Alm.......former owner of "Accounts Control Service" in Northbrook, IL