Dealing with Hostess Payment Issues in Direct Sales - Need Advice and Venting!

[kristenskitchen]

I know I haven't been around for a while...(the usual excuses apply, work, family, holiday prep, etc) but I had to come back and get some advice and/or encouragement -- mainly to vent!

So anyway, I had a show on Oct 19th that was just super-duper. The hostess collected a TON of outside orders and it was just so great! The show went well, the orders were great, she got $140 in free stuff, etc, etc. Well anyway, I got most of the money before I left on the night of the party (the hostess lives an hour + a half away) so I'm going home all happy and excited and everything is just peachy keen right??

Well of course she still has a few orders to collect money on after the show and I'm thinking cool, no problem getting it in by the 31st. Cool beans! The hostess mails me two of the checks and a mix n scraper I left at her house, and I figure, ok, she's been on the ball this far and she's really sweet and nice so I figure on the 31st that I would go ahead and put the show in even though I still need $357.09 from her to balance out the show. So I submit the show going against my better judgement because I just KNOW I'll get her MO (she said it was in the mail) and because I need to put that show in to stay active. Another reason is because I've done shows for two of her sisters and I am really good friends with her sister's daughter in-law. (She lives on base with me)

Fast-forward to today. I STILL don't have the MO. Apparently it got "lost" in the mail even though the other package she sent got here just fine. Then she said she is getting a refund from the Post Office on her money order so she was going to just get another one and give it to my friend on Thanksgivng and she "forgot" to bring it. THEN she said she was going to over-night it to me since "she really wanted me to get that money" and hasn't done that. (Said she was going to overnight it on Friday the 24th, today is Monday the 27th, mail has run and still nothing)

So tonight I try to call her on both of her numbers. No one answers the home number either time I call (no answering machine either) so I try her cell and some guy answers and says I have the wrong number. Well, I know I do because I've called her on that number before and I called her sister (my friend's mother in law) and she said she didn't think she got a new cell phone number. Now I think its obvious she's avoiding me. I also emailed her asking (ever so nicely) if she got a chance to overnight the MO yet and no repsonse.

I am so mad! At her for not being responsible and at me for submitting the show early. I just did NOT want to go inactive and since I had done shows for practically her whole family (my friend and two of her sisters) I figured she wouldn't screw me over. I'm just kicking myself so hard over this because my husband and I are NOT in financial shape to re-coup from losing $357.09 for something we have nothing to show for. My commission is basically out the window and with Christmas coming we are royally up the creek if she doesn't send that money.

Sorry to make this sooo long. I just need to get this out! My husband, THANK HEAVENS, is not giving me a hard time about it and is being supportive but that just makes it harder for me to stomach because I know how hard he works for our income and to just lose over $300 of it like that would just make me sick. I think I would have to stop selling PC if that ends up being the case. I know it was my fault for not having the show shipped to me or getting the money ahead of time, but WOW, talk about not being able to trust anyone! I would have to run my business like a prison guard and I don't want to do that either. I like being able to trust people and I'm usually very careful, but if I can't trust her, who can I trust?!?

Anyone have any thoughts? Ideas? Suggestions?? I don't wan't this to get any worse than it already is....

TIA,
Kristen

 

[ange13]

oh, oww, yikes. that really stinks! I've had people take forever to pay me--but it's never been that much--at least not from one person! I have one lady who ordered from a party in sept ($40) that she couldn't let her hubby know she was spending any money that still owes me and will pay me at her party next weekend.

I have another lady who I know from years ago that still owes me ($42) from a party in oct.

and another lady who I should be getting money from tomorrow ($94) who wrote the check out wrong! the box and the written didn't match.

so, I feel your pain! although it'll be nice when it all comes in and my acct shows higher than it does now! and i'm not made of money either--just luckily had a really good month!

All I can say is keep after her and don't let her get away. If you need to send her official papers or something, do it. that's ALOT of money to not follow up on. and maybe since it was the holiday it truly is in the mail--but sounds like it isn't

oh, and next time, send the product to you!! (I'm sure you'll remember that one already!!!) sorry and good luck

 

[jentapp]

The only people I've had problems with had small orders ($40 or under), so I was able to cover it without too much grief. I think if it were hundreds of dollars, and the host didn't get it to me by the party close due date, I would tell her that her unpaid orders would be put on a separate catalog show in her name and that the lack of payment would decrease her benefits by however much (and then only give her what she would earn based on how many PAID orders you have in your hands). I would put her as a catalog show booking off of her own show, and it wouldn't be submitted until I had all of the money turned in.

See if your friend can do anything to collect it. Otherwise, contact a lawyer and have them draw up some scary "I'm going to sue you if you don't pay up now" papers.

((((HUGS))))

 

[The_Kitchen_Guy]

Money Order? Postal Money Order?On one hand, I hate postal money orders. They're tough to trace and there's little recourse. On the other hand, she was using the mails to commit fraud - a felony. Talk to your local postmaster and see if there's anything the Useless Postal Service can do for you.

 

[kristenskitchen]

Ange -- my new rule no matter what, I don't care if you live an hour away; all and I mean ALL shows are shipped to me. That way I have all the stuff no matter what happens!

Jennifer -- Good plan! I think I'll keep that in mind. Hopefully I wont have to deal with this again...if ever! I'm actually trying to keep my friend out of it since its ultimately my repsonsibility and I don't want to put her between me and her family (well sort of family). She IS really awesome and I would hate to lose my friendship with her over this!

Kitchen Guy -- I'm not quite understanding how she committed fraud?? I wouldn't count on the PO to help at all though...I once tried to collect insurance on some pottery I bought off eBay that came all broken up and OMG, it was a nightmare!! Don't want to go through that again...ended up writing to the Branch Manager, the Postmaster for the state and even my Senator over that one!!

 

[Nanisu]

Ok, after 7 years in this business and over 450 shows, this is what I would do. First of all, don't involve your friend at all. It's not her problem. What I would do is send the hostess a CERTIFIED letter telling her these things 1) there has been no money crossed your mailbox at all, despite repeated attempts to collect on your part. 2) If she really did send the original money order, she should have a copy of it, she needs to get that to you to show good faith. If she doesn't have it, guess what, she never did have it. 3) If you do not receive the money, either in cash or a new money order by this thursday or Friday, you will be contacting each and every person that purchased on this show to inform them that you have not received payment and will arrange to pick up their products from them. They may have paid her, but she has not paid you. If, after you have called them you still have not received payment, you will turn the entire thing over to the authorities. If she said she mailed it and she didn't and she is blaming the post office, guess what, it is fraud. Fraud is a fancy word for lying. Sorry to be so abrupt, but this is business, and you can't go there about friendship. This person is taking advantage of your friendship with her family. If she went to target they wouldn't put up with this,why should you. You don't need to be mean, but this is business.

Nancy Collins
Director
Orange, CA

 

[The_Kitchen_Guy]

EXCELLENT post. EXCELLENT suggestion. Let me add, not only a certified letter, but return receipt requested. Make her sign for it so there is no question that she received it.

 

[pampchefrhondab]

I never ship a show directly to a host if I don't have all the payments. I also don't hold checks until the show closes. If I get checks at the show, I deposit them the next day (unless asked to hold until a certain day). This way I know if any bounced before I send the show in (I had a big one last month-luckily I hadn't sent the show in yet).

I had a show almost two weeks ago. The host was supposed to call me last Wednesday to close, but didn't call until Friday (understandable w/the holiday). I had suggested she have checks made out to her for any addtional orders and then just pay w/her credit or debit card w/me so we could close sooner; however, she didn't. I told her I wouldn't send the show in until I had the payments. I know she would have liked me to send it in earlier, but I just can't afford to cover $200 out of my account. She did get the checks in the mail right away, I got them yesterday.

Good luck!

 

[jrstephens]

Make her sign for it so there is no question that she received it.

I would also do it "restricted delivery" that way ONLY she can sign for it and if someone else signs for it she cannot say she did not get it.

 

[ChefLisa]

Based on the fact she did not answer your calls, my guess is she has caller id. Maybe you should try and be a little sneaky if you want to talk directly with her. Do you know the people at your bank? Maybe you could call her from there. Maybe she would pick up that call.

However, the certified letter is a must. At this point it seems like she has stolen her friends' money that was heading to youl. Theft is a big bad word, but that is what it is.

Good luck resolving it.

Lisa

 

[kristenskitchen]

Ok, I wrote up the letter. Does anyone know how I do a link to it on here?? I am so not computer savvy.

Anyway, I am going to try and call her one more time before I send it. If I can't get a hold of her I will send it when I go to pick up my son from pre-school.


Thanks so much for all the advice. I still feel sick to my stomach over this, but having some good ideas on what to do next really helps! You guys are awesome!

Nancy -- thank you SO much for the idea to write to her. I will send it certified, return receipt and restricted delivery!!

Thanks again...

 

[klsnyder]

If you dial *67 before you dial her phone number, it will block your phone number from showing up on her caller ID..try that!!

 

[lkspeir]

Just wondering if the order has been shipped - Would calling the home office and asking them to change the address on the shipping be a possibility?? That way the host isn't getting the products that haven't been paid for. I too have the order shipped to my house if I feel "ify" about it, or if all the payments aren't in when I close the show. At least then you have the products to sell to someone else.

 

[supergirljennie]

If you dial *67 before you dial her phone number, it will block your phone number from showing up on her caller ID..try that!!

There are people whose number will not receive any blocked ID calls. My aunt's number will not allow me to call if I don't identify first. And plus, if you do do that, it will come up as Blocked, and she might not answer blocked calls anyway. But it's worth a try, but I would not be surprised if she doesn't answer still.

 

[jentapp]

Just wondering if the order has been shipped - Would calling the home office and asking them to change the address on the shipping be a possibility??

I tried that once and HO wouldn't let me change the address since the orders go straight to the warehouse. If they had, I would have had a happy customer somewhere because it was a Deep Covered Baker that the customer could not afford (by her own admission when she called AFTER I had already sent the order in).

 

[kristenskitchen]

Well guess what? I called her cell number (the same number I tried last night and got a guy who said I had the wrong number - I'm guessing that was her son) and got her voicemail. I left a message that was straight to the point. Tried her home number again (from my husband's cell phone) and nothing. So, she has until 4 pm today when my husband gets back from work or I'm sending her the following letter I typed up:

Dear Tammy,

I'm very sorry to have to write this letter to you. To date, I still have not received the remaining balance due on your show so I feel I have no choice. As of November 28th at 9:30am I have not received any form of payment in the amount of $357.09 that is still due on your show. In addition to that, I have absolutely no proof that it was ever attempted to be paid. Because of that, my personal finances have suffered and I have lost a significant amount of sleep worrying how I will recover the missing money. Because I had to use funds from my personal account to pay the balance due on your show, I am forced to take more drastic measures to recover the money now that it has been almost a month since you said you mailed it. I am running a business and since I have made every attempt to collect the amount due with no result, I simply cannot let this drag out any longer. Here is what I need from you Immediately:

1) A copy of the original money order receipt (faxed or scanned and emailed to me) This will show me that in good faith, you did in fact attempt to send the money order

2) Payment sent via Western Union to me in the amount of $357.09

You can send Western Union just about everywhere, I looked it up and the closest place for you to send it would be: The IGA at 510 North Old Route 66 there in Litchfield. If you want to call to make sure, the number is: (217) 324-5367 and they are open 6am-11pm everyday but Sunday. You can also send it online through www.westernunion.com using a credit or debit card. I'm pretty sure the fee would be about the same as it would cost you to buy a money order and overnight it to me.

Have the money sent to this Western Union location in my name:

SCOTT AFB EXCH
207 W WINTERS ST BLDG 1981  
BELLEVILLE, IL 62225
Tel: (618) 744-9830


Once I receive the money, I will let you know right away. Again, I'm very sorry it had to come to this. I realize you may still be waiting for a refund from your original money order, however, since I have not ever received proof that it ever even existed and have made repeated attempts to contact you since last Friday the 24th with no response, I have to proceed as if it never did. Please don't take this personally. Believe me, it is strictly business. Please do understand however, that I am completely serious and if this is not cleared up by December 1st, I will be contacting the authorities. I simply cannot wait any longer for that large of an amount of money.

Your prompt reply is requested and appreciated.

Sincerely,
Kristen Gill
Independent Consultant
The Pampered Chef


We'll see if I hear from her. If not, my husband said that letter will get her attention!

 

[jenniferknapp]

the letter looks great - good luck!

 

[priscilla]

I like how you spelled out how and where she can send you the funds. No excuse there for her, is there!!

However, I would take out the apologies. Start out with your second sentence and delete the first one. Also in your closing paragraph, remove the apologies. Try not to get personal by mentioning your loss of sleep and personal finance issues, simply state she still owes you money in X amount, and here is what you request she does about it. Keep it strictly business.

You should not be apologizing to her for running your business your way, and I think you lose some "Ooomph" by saying sorry.

Good luck, and please let us know how this turns out. What a crummy thing to happen...

 

[chefjeanine]

I like how you spelled out how and where she can send you the funds. No excuse there for her, is there!!

However, I would take out the apologies. Start out with your second sentence and delete the first one. Also in your closing paragraph, remove the apologies. Try not to get personal by mentioning your loss of sleep and personal finance issues, simply state she still owes you money in X amount, and here is what you request she does about it. Keep it strictly business.

You should not be apologizing to her for running your business your way, and I think you lose some "Ooomph" by saying sorry.

Good luck, and please let us know how this turns out. What a crummy thing to happen...

Agreed. Quit with the apologies. Shorter is better, get straight to the point. She's the one who screwed up.

 

[chefjeanine]

Dear Tammy,

As of November 28th at 9:30am I have not received payment in the amount of $357.09 that is still due on your show. It has been almost a month since you said you mailed your money order. I need to recieve these funds ASAP. Here is what I need from you:

1) A copy of the original money order receipt (faxed or scanned and emailed to me) This will show me that you did send the money order

2) Payment sent via Western Union to me in the amount of $357.09

You can send Western Union just about everywhere, I looked it up and the closest place for you to send it would be: The IGA at 510 North Old Route 66 there in Litchfield. If you want to call to make sure, the number is: (217) 324-5367 and they are open 6am-11pm everyday but Sunday. You can also send it online through www.westernunion.com using a credit or debit card. I'm pretty sure the fee would be about the same as it would cost you to buy a money order and overnight it to me.

Have the money sent to this Western Union location in my name:

SCOTT AFB EXCH
207 W WINTERS ST BLDG 1981 *
BELLEVILLE, IL 62225
Tel: (618) 744-9830


Once I receive the money, I will let you know right away. If this is not cleared up by December 1st, I will be contacting the authorities. I simply cannot wait any longer for this large amount of money.

Your prompt reply is requested and appreciated.

Sincerely,
Kristen Gill
Independent Consultant
The Pampered Chef

How does this look?

 

[jenniferknapp]

Are you certain that she will get the letter before Dec 1? That is only 3 days from today....maybe she is really close?

 

[kristenskitchen]

I think you're right and one of my friends said the same thing. She asked why I was apologizing to someone who is screwing ME over? I think you both have a point. ChefJeanine, I'm going to use the letter you posted. Much more to point. Thanks you guys! I feel much more in control of the situation now. Just hope she comes through so I don't have to contact a lawyer, that would be a real pain. We'll see what happens...

 

[kristenskitchen]

P.S. She lives an hour and a half away so she should. Even if she doesn't get it until the 30th, she can do a Western Union payment the same day which is the point...to get her to pay right away. Plus the store that does WU is open until 11pm every night.

 

[janel kelly]

I have been able to change the address of the products after they have been shipped. You just have to call UPS to do it. I called my local UPS and they gave me the # to do it. I think if you want to actually talk to a UPS rep you have to push the #0. I think I had to push it twice. Good luck with everything.

 

[PChefAbey]

Janel is right I have had to have a show redirected because home office messed up and sent it to the wrong place and I just called UPS, I believe it has to be done on the day it is gong out for delivery so track the package online and try giving UPS a call at least that way you can call the customers and say sorry I never recieved any payment from the host I will have to return your products unless you are going to pay me directly.

 

[cookinmama]

If you have a show going out that is the $357 or more you can have her pay you with a cc or debit # and just send that cc# in on that show and keep the money from the show. I have done that before. I have a couple of very good customers that call me and order and then they just pay me with a cc# sometimes when I deliver them the product. So, I have to put their card # in on the next show. I have never had a problem with the name on the card being different then the the customers order.

 

[jrstephens]

I have rerouted shows before too. I had to call the local UPS place the morning it was out for delivery to have it rerouted to a different address. I tried calling the main UPS number the first time and they would not reroute it for me while in transit.

 

[ChefBeckyD]

If you have a show going out that is the $357 or more you can have her pay you with a cc or debit # and just send that cc# in on that show and keep the money from the show. I have done that before. I have a couple of very good customers that call me and order and then they just pay me with a cc# sometimes when I deliver them the product. So, I have to put their card # in on the next show. I have never had a problem with the name on the card being different then the the customers order.

If I'm reading this right.....this just doesn't sound legal to me??? But maybe I'm not understanding what you are actually doing?

 

[cookinmama]

If I'm reading this right.....this just doesn't sound legal to me??? But maybe I'm not understanding what you are actually doing?

Why would it be ilegal? You are sending in a payment on a cc that needs to be charged. I know a lot of consultants that do this. I like to keep my customers and I don't mind covering the cost of the item until I deliver it. With electronic banking now days, most people do not even have checks to write and they don't carry cash because everything is direct deposited (I am one of these people).

 

[AJPratt]

Definately have the order re-routed to you and call HO and demand to talk with a supervisor. The HO service is not as consistent as it was. Different people will do different things as I found out.

And you don't need to be polite. THIS IS THEFT!!

 

[jrstephens]

If I'm reading this right.....this just doesn't sound legal to me??? But maybe I'm not understanding what you are actually doing?

I don't think it would be. It is no different than me using my CC to pay for my mom's purchase at a store when she has already given me the cash to pay for it. Or at least that is the way I see it. I have never done this b/c most of my guest/host pay with check.

I think we all have things we are comfortable with doing and not doing that others may not totally agree on.

 

[ChefBeckyD]

I don't think it would be. It is no different than me using my CC to pay for my mom's purchase at a store when she has already given me the cash to pay for it. Or at least that is the way I see it. I have never done this b/c most of my guest/host pay with check.

I think we all have things we are comfortable with doing and not doing that others may not totally agree on.

I don't think I'm reading it correctly.....It just sounded like she was charging guests CC's on one show for purchases made by others at another show and pocketing the $ actually paid for the product - I guess I'm not understanding how you would do this - just because there hasn't been a problem yet - what if the CC company does question it?

 

[kristenskitchen]

Its too late for me to re-direct the show, it has already shipped long ago. I submitted the show on Oct 31st after she told me the MO was in the mail.

Here is her latest reply to my calls and emails (I got this today after trying to reach her since last Friday):

I am sorry i didn't get back to you but i can not open my email on yahoo for some reason . I just got your message on my cell phone today . I could check in on western union . I will let you know i think they have that at radio shack but not sure . Do i need info from you to do that ? I still haven't gotten the money back off of the money order that got lost in the mail , they caneled the money oder but it could take up to 30 days to get the money back . i got money back on the one because it was under $100.00 . That's hurting me too . Thats $247.00 on that money order i am still waiting on .I will never do anything like this again unless all the money is here the day of the party i will never send a money order ever ..... Let me know what i need to send money western union . i have never done that . I will have to wait intil friday because i am short this week but i have most of it anyway . Have you still not gotten anything ? Doesn't that make you wonder where letters and packages go that get lost . I hope you don't hate me for this mess !! I will do what i can after you let me know what i need . I need to go i have to pick up my car from the shop my hub baring went bad on the front right side what ever that means $590.00 later .

Hmmm....not sure what to think. The whole thing is making me numb.

 

[Paige Dixon]

Wow, it sounds like it's a really big mess for her, too.

 

[Iluvpc]

Wow,
So sorry to hear of your horrible problem with the payment on the show. I think the certified letter is a good suggestion. I am heading in to my 6th year with PC. In my first year I was burned by two different people. A check on an outside order (she worked with my sister) and payment on an entire catalog show. The story is too long to tell, but basically on the recommendation of my national senior exec, I have all checks made out to the host and then have the host pay me and I never submit a show until I have the entire payment. Best of luck to you on collecting. For that amount of money, I would definitely pursue some legal action - small claims court if you have must.

 

[jentapp]

Did you get your money?

 

[AJPratt]

I understand things come up, but puh-lease. Yeah, did you get the $?

 

[jrstephens]

Would love to know if you got it too?

 

[DebbieSAChef]

Don't feel badDon't feel bad because you trusted someone and gave them the benefit of the doubt. From now on you will know never to do that again. A valuable lesson has been learned. I'm sorry you have to go through all this. I hope you get your money. Please let us know.
It sounds like she is making excuses. I have had things happen to me too, as far as an accident, sickness, my car being totalled and taken away, but I still do what I say I am going to do, even if it's inconvenient for me.
It's important to be a person of your word, especially in this business. She obviously is a very immature, irresponsible person.
From now on I would just make sure the host pays one big check for everyone's payment. I do that and it keeps everything the way it should be. The host then becomes the person who must hunt down these guests for money and since they are her friends or family it is easier for her than for me. Of course when I have shows with church friends, or family I take individual checks with no problems.

Debbie

 

[ChefAggi]

I like how you spelled out how and where she can send you the funds. No excuse there for her, is there!!

However, I would take out the apologies. Start out with your second sentence and delete the first one. Also in your closing paragraph, remove the apologies. Try not to get personal by mentioning your loss of sleep and personal finance issues, simply state she still owes you money in X amount, and here is what you request she does about it. Keep it strictly business.

You should not be apologizing to her for running your business your way, and I think you lose some "Ooomph" by saying sorry.

Good luck, and please let us know how this turns out. What a crummy thing to happen...

I too have to agree here. You won't see large corporations apologizing for running business or financial worries on their side, therefore nor should you. The letter is great and is very to the point! (I still have more to read from this thread, but wanted to put my 2 cents into this at this point)!!

Cheers