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?

Mates rates are fine - you'll get friends referring on to their friends etc but they need to be set so you're covering your own costs.

You could advertise mates rates for Christmas stuff in July / August only so you can plan the work and say all work Sep - Dec is at standard rates.

A friend wouldn’t do this.

If you write off the money, make sure you also write off the friendship.

I have a similar business by the sounds of it. This has also happened to me. For the sake of £10 I would take it as a lesson learned, if you want to maintain the friendship.
But in future, if she wants anything then she pays up front.
I’ll also tell you a secret, if someone else is a bit ‘tardy’ in paying then CF tax is added to their order. I’m sure you can guess what it stands for

This happened to me. I spent hours/days making the items, gave to a friend who needed it for a wedding reception. She said she would pay. I only wanted the cost of the materials. I asked and sent friendly reminders but gave up when I knew I wasn't going to receive any money. I let it go but when she asked me to make another item for her I said, sorry I haven't the time and I cant afford to give away freebies. Never make anything for your friend again. She is a cf.

1. Real friends would not expect mates rates.

1. Ask her outright for the money & don't sell anything on tick again, ever.

You say no, you can't pay me at some point pay now or pay full price in £30 days. You and your work is being disrespected. You are running a business not a charity subsidising nice holidays- you have to toughen up I'm afraid.

This time take the hit for a tenner however going forward if anyone asks say need pay before your start to make them.

Ask her for what she owes
Then never ever sell to her again,
Unless she puts the full cost of said
Item at full price into your hand

She has to pay you. And in the future I think your friends should pay the same as everybody otherwise they won’t value the product. Business is business.

You’re not asking friends for money though, you’re selling them something! I’m pretty certain they don’t expect it for free. If you do want to do ‘mates rates’ then £25 instead of £30 is reasonable, not £10! Stop being so nice.

Mates rates are fine - you'll get friends referring on to their friends etc but they need to be set so you're covering your own costs

The only problem with this, @independentfriend, is that friends can become acquaintances, which then turns into someone they met in the pub, and the producer can easily end up with everyone and their dog looking forward to a bargain

As has been said, whatever the price chosen the only real solution is to insist that work can't start until payment's received ... no exceptions, no "Oh, buts ..."

this.

I would be fuming to the point that now I would be asking for full price. I would explain that your offer was fair and reasonable based on mutual respect. As she has has showed no respect for you, your time and your business I would demand full amount. She is no friend!

Good idea. Make sure you have cake as well!

Is she really your friend if she can’t be bothered to pay you?

This.

Do not devalue your time and products by selling your products at a third of their value!

A true friend would support your small business by paying you full price, and upfront! She needs a kick in the fanny!

Absolutely don’t do this. It’s so ‘please if you don’t mind would you kindly pay’. She’ll just do as she’s been doing and ignore you.

TBH, for a tenner, I’d let it go BUT I’d also really step back from this so-called friendship.
I also think charging £10 for something that would normally cost £30 is WAY beyond mates’ rates. £25, perhaps (or maybe even £20 if you’re feeling particularly generous and it’s a REALLY good friend) — but NOT at a busy time of year when it means you’re having to say no to full-priced orders…

You dont have to domstes rates at all. You have a business to run as they do, unless its recíprocal.

Do you have a payment system in place? If not you need one for all orders. Look into Shopify and similar. Stop taking payment after production.

you also need to stop with the £1 mates rates. You are devaluing your business.

imagine one of your mates has another friend who sees the item and says ‘how lovely, can you pass the business details on?’

and your mate says ‘oh yes, it’s my friend SmallWorriers business, here you go. She only charged me £10 for it which was nice’
your product is immediately positioned in that friends mind as only worth £10.

never offer discounts or do sales, you’re telling your customer base that this is really what it’s worth. Same as when you go in a shop and think ‘I’ll just wait for the sale’.

you can’t afford to sell at a loss (to anyone) when you’re a small start up.

I would do her an invoice list the items at full price then put "less friends only discount" deduct it, the Put : amount due for immediate payment. If she then doesn't pay you, and asks for something else I'd say, well it's like this, I gave you the items Christmas, and even with just charging for materials you never paid for them, so having made a loss I've decided I will no longer give discounts and items have to be paid for when ordering.

I would stop with the mates rates, friends should want to support your business and would insist on paying full price.

Give friends 10% off if you want to. They know the cost of the items so if they order they’re clearly happy with that price. But I wouldn’t do them at cost. You should value your time.

As for this CF of a friend, I’d send a message saying you’re doing your accounts, so can she pay what she owes by the end of the week, and add your bank details.
She wouldn’t swan out of a supermarket saying “i’ll pay you at some point”.

Op just say I know it’s only 10 but I want my accounts recorded properly for the tax man then if she ever has the cheek to ask again just say sorry I have paying customers if I keep stopping them for friends I might as well call it a day as 10 quid doesn’t even cover 1 hour of my time so all orders are paid upfront like everyone else and I won’t do at cost if you have already had it once before.

My best friend makes jewellery. I have never even considered 'mates rates', I just always pay full price. Why should you lose out on money. I think in future just say to people that you are no longer able to give reductions as you would have to cancel higher paid work to take it on.