Navigating Client Disputes: A Q&A with Jim Finucan

The Dilemma: A Disputed Bill

A business owner from New Jersey writes to Jim about a predicament with a usually reliable client. The client has refused to pay a $7,500 bill, arguing that the services provided were subpar and had to be redone by another party. The business owner is torn between preserving the relationship and standing his ground.

Jim's Response: Understanding the Situation

Jim begins his response by distinguishing between a genuine dispute and a deliberate attempt to avoid payment. He emphasizes that it's crucial to recognize the difference. In this case, the client seems to be a valuable one, worth nurturing and retaining.

Jim suggests the business owner to consider several factors:

• Is the client a repeat customer?
• Have they consistently paid on time in the past?
• How long has the client been with the business?
• Have they provided any referrals?
• Can you empathize with their perspective in this dispute?
• What is the financial impact of the disputed amount?
• Is it worth losing the relationship over this amount?
• Is the client likely to provide more work in the future?
• What could the client potentially be worth to you in the future?

Resolving the Issue: Communication and Compromise

Jim advises the business owner to investigate the cause of the misunderstanding, acknowledging the possibility of an error on his part. He recommends clear, calm communication with the client, emphasizing politeness and seeking understanding rather than confrontation.

If a resolution cannot be reached, Jim suggests letting go of the disputed amount and not bringing up the issue again. If the client is seen as a significant part of the business's future, it may be worth forgiving the debt without further inquiry. As a gesture of goodwill, Jim proposes sending the client a large box of candy and a pair of theater tickets.

In conclusion, Jim's advice underscores the importance of maintaining good client relationships, even when disputes arise. By understanding the situation, communicating effectively, and being willing to compromise, businesses can navigate these tricky situations and preserve valuable client relationships.