Friend ordered something from business and hasn’t paid

[SmallWorrier]

This is a really awkward situation! I recently started my own business where I sell goods that I’ve made. Im lucky it took off quickly and am managing to make it work so far. I mostly sell to strangers as I knew I’d struggle to sell and take money from friends if they ordered. These items are for children.

a couple of friends have ordered for their children and I’ve always sold them much lower than I would to strangers, not making a profit but breaking even on materials. A friend asked about ordering 3 items for her daughter for Christmas, which would usually have come to £30. I told her £10 would be ok. She took the items and her daughter got them for Christmas and has been wearing them however she didn’t pay for them. At the time I offered bank details and she said she’d pay cash. I’ve seen her a few times and last time I mentioned her daughter looked nice in what I’d made and her reply was “oh I’ll pay you at some point.” The woman is usually complaining about being skint however books nice holidays etc. I feel awkward but frustrated as I did them at a cheap price anyway and taking on her order before Christmas meant I couldn’t take on as many other ones (I only take so many a month to make sure they get done in good time and I don’t overwhelm myself). This is the reason I don’t want to take orders from friends!! I’ve asked a couple of times now with no reply. I don’t want to lose the friendship or people think ill of me by pushing it, especially in our small community. WIBU to ask again for the money or should I just let it go?

Message her. She owes you. And never sell cheaper to friends. £30 to £10 is madness

You're letting her take the piss out of you?

I mean there’s not a business model if you have to refuse customers based on who they are to you, not because you won’t have any customers if you don’t sell to friends and family.
give your F&f the same access as anyone else, and if they ask for discount then you can choose but keep it a realistic amount.

What are you making that is so popular that you’re so inundated ?
Are you charging the right price for the time and items?

just because your product is popular doesn’t automatically make you good at business

Why haven’t you messaged your friend? She needs to pay up, no excuses!

If she says she’s skint, offer payment terms of £2 a month or similar. Don’t let her get away with it, as £10 is still £10. I ran my own business for many years and very rarely had to remind people more than once to pay up. My clients all understood that they needed to pay upfront or in instalments.

Congratulations on you business success. It sounds like you’re doing great. I started a small business which is now turning over seven figures and employing seven people. I did the same as you initially.
My advice would be to set protocols for everything and stick to them. So if you want to give a friends and family discount, make a code and apply it consistently. It’s awkward for your friends if they want to support your business and you give them a huge discount. They’ll feel it’s hard to ask again in case you think they are angling for another discount.
We used to give 20% or 25% for friends. Now I just give them the best discount we offer which is currently 15%. It’s better than nothing and it is what the business can afford.
you also need clear delivery and returns policies for everyone who buys from you and they should be clear and accessible online. Ensure you have at least £1m of public liability insurance (especially if you are selling things for kids. Ensure you comply with all the legislation. (Most shows and trade fairs require this). Take all money through a website or platform upfront. You get the cash. They get a receipt which you need to provide.
Be aware that post-COVID ecommerce fraud (equivalent of online shoplifting) has gone up 20% so you will get difficult customers at some point claiming parcels haven’t been delivered when you know they have. If you know how to handle these complaints ahead of time with good clear protocols you can point them to, you won’t take it too personally.
Plan your business growth and set some goals. Remember to celebrate when you achieve them. It’s a great thing that you are doing. Enjoy the ride!

The fact is some people are very brazen about not paying- begging or pleading will not help, you have to make it clear you are serious about being paid and there will be consequences if they don't. I have run a small craft business for years, and I will not hand over any goods without payment , even to friends, if I don't have a business relationship with the buyer.
You will just be repeatedly taken advantage of if you don't approach getting paid in a professional manner.

If it makes you feel any better, I sang at a friend’s sister’s wedding. They signed a contract agreeing to pay a deposit & my mate’s rates fee remaining 24hrs prior to the wedding. I waived the deposit (my bad) and when I phoned the sister the day before, she said that she would get the money to my by close of business that day. (Pre phone banking of course) Of course it didn’t happen. She didn’t answer calls that evening or the morning of, so I phoned my friend. Her sister had raved about how generous I was, singing for free as a wedding present. Uh, no… I explained that she was taking the piss and that I wouldn’t be singing unless I was paid in full (in cash) 2hrs before the wedding. My mate was mortified and said that her sister had tried shit like this before and she was sick of picking up the pieces. It wasn’t her fault, so I told her not to rescue her sister and let her sort herself out. I sent an email to her citing breach of contract and cc’ed her parents and the groom and went out for lunch with some other friends. 20+ years later, she’s been divorced twice and is still mooching off parents and I have to see her sometimes. I’m still bitter. (So is my mate and their parents)

She is not your friend.
Do not take orders from friends going forward, simply say you are too busy.
I definitely would mention that she never paid.
She is deliberately not paying you, of that you can be sure.
Definitely not a friend.

Send her an invoice with a deadline for payment. Ask for money up front in return for a discount for friends in future

Message her again saying you're completing your Tax return & need to add all orders & payments from before Christmas to your total income for your books to balance so can she please pay no later than xxx date. Going forward I'd not be taking orders from friends & charging discounted prices. You're trying to earn money & run a business so why feel you have to do them any favours.

Ignore it but next time she asks quote her double

I used to be a business advisor - the reason she hasn't paid is because its 'only ten quid'. She sees no value in this as it is so little. Never charge mates rates, they are undervalued as ' its only a few quid'. Lesson learnt!

She still hasn’t paid or mentioned it. She has posted a lot online about bad mental health so not pushing it. Lesson learnt x

Ahh no way! Yes people saying money up front but when it’s a friend and I had no issues making it. People say charge friends same as others or your business will fail - no I don’t think I will. I still value friendship and don’t want to profit off them. I enjoy doing what I do it’s just frustrating when it leaves me out of pocket. 99% of people buying are strangers on the internet which to me is so much easier than dealing with friends 😂

If you charge mates rates and treat friends differently than normal customers then they will take advantage. You can't get frustrated at your friends for not paying you when you treat them differently.

Also, hope that none of your regular clients find out you offer mates discounts, as they would justifiably resent that.

Kindly, you're not cut out for having your own business.

I agree. I’m sure I’d be able to get that money off her very quickly!

People say charge friends same as others or your business will fail - no I don’t think I will. I still value friendship and don’t want to profit off them

How then is this a ‘lesson learnt’?

I honestly don’t know why you posted, you are naysaying every post that suggested you go about it professionally.
effective business acumen requires setting boundaries to protect your business’s long term sustainability
experts generally advise against offering discounts to friends and family, it can devalue your work and time and create unrealistic expectations from f&f with potential further awkwardness.

You keep saying how popular and sought after your product is so you clearly do not need to offer discount.

If you don’t want to profit off loved ones AND you say it an enjoyable hobby , why don’t you just give it them for free and charge the 99% of strangers the full price.

actually I don’t know why I’m wasting time and energy on this, you already know best

😂😂😂😂

You have devalued your own products by offering it cheaply.

To your “friend”, she won’t see it as a £30 product.

She’ll see it as a £10 product - at best - because that’s what you asked her for. Probably thinks it’s worth (say) around £3 to you and the rest would have been “profit”.

That’s why you shouldn’t devalue your own products or services by giving them away cheaply or free. People then think they’re not worth much / anything.

If she has MH issues, honestly @SmallWorrier , I’d do exactly what you’ve done. Life’s short. Wouldn’t let her do it again, good luck with your business.

All things considered, you're doing the right thing at this point.

But if she ever has the brass neck to ask for your services again it's either a flat 'no', or she pays full whack up front.

And if she's cheeky enough to ask why, you can tell her the simple truth: you didn't pay me last time.

You will never make business woman of the year (or a profit) with this outlook.

I would treat this as an official business. Send her an invoice with “past due”.

See if you can commence small claims proceedings and do not sell to her again.