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Director Navigating Payment Issues After a Party: An Unfortunate Reality

In summary, the flaw in my payment method is that there is no way to idicate who paid and who owes me money. I will begin to keep a log so that I can remember who paid and who owes me money.
Chef Kearns
Gold Member
3,323
Before I get into the problem, I'm going to outline how I handle payments at my parties. I have never had a problem doing it this way until now. I see the flaw in my method know and will begin to keep a log so I will know exactly how people pay. Okay, anyway...I do not accept checks or cash at my parties. I have the host handle that and ask them to pay me at close with a debit/credit card over the phone for their friend's payments and their host portion. They put the money in the bank after the party and it all works out...usually! The flaw, as stated above, is that there is no way to idicate in P3 that they paid if I leave the money with the host. I don't document it so that the host will get an accurate accounting of how much is due. It is easy to look at the show screen and see who has paid by care and who they should have received payment from.

So, I had a show in June that took 4 weeks to close!!! Well, they had a bunch of people over (over 40) and things got a little chaotic, but I tried my best to organize all of my material, payment and everything. Fast forward to last night. We get home and I find a message on my machine from a customer who was at that party. She's saying that the hosts are telling her they never got her payment. She said she paid cash that night. Since I don't take the cash, I cannot verify this. I'm not sure how I can help fix this situation. I know how to fix the future, but I gotta get out of THIS mess.

Any suggestion?
 
Have the host write write "received $amount on date" and then put her initials next to it on every receipt where she takes money ~ then give the customer their copy with her writing that she took money.
 
yep, write it on both copies of the reciept, you have a copy and the customer has a copy and then there is no problem
 
  • Thread starter
  • #4
Okay, that helps me going forward, but I need help with this situation!!
 
{{{HUGS}}} Unfortunately, I am of no help. Not sure how I would handle this.
 
It's between her friend and her..if she gave cash to her friend...I agree with the above posts...write it on the reciept and have the host initial it.
 
Did she give you the cash and then you gave it to the host before you left? Or did she pay the host that night? If she gave it to you then I guess I would try to fix the situation. Maybe call the host and ask her to help you remember how the order was paid? I am not sure what else you can do, was it a big order?
 
Okay, I am assuming you ordered her products and it was sent to the host. Now the host is telling this customer that she needs to pay the host to get her products. Customer is saying she paid in cash. Is this the right summary? I think the responsibility lies with who she paid. If she gave you the money then you need to fix it, either by mediating with the host and figuring out what happened to the money or replacing the customers order. If she paid the host then this is between these 2 people. You can try to help, but if the money was handed to the host then it is the host's responsibility to straighten it out with her friend.
 
I agree with Wendy.
 
  • #10
All I am good for is agreeing...and I agree! This is just me, but if I see cash, I take it, count it and mark the receipt as paid cash. I have had a host use the cash for other things and never pay me.
 
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  • #11
Okay, now here's the problem. I just don't remember!!! They had 40 people there and 2 drag queens and it was just crazy!!! She may have given me the money. That's how most of my parties go, but that night she may have handed it to the hosts. It was no small order, around $85. I do know that I put the checks all together and put them in a kitchen drawer under their silverware tray (I couldn't pin them down to talk, the drag queens were doing their thing with the crowd). I know I didn't handle it well. I wish I could remember exactly how it went down and I will definitely handle the payments better going forward. I sent an email to my hosts and now I'm just waiting to hear back from them and we'll go from there.

I honestly don't remember getting any cash that night. I told people repeatedly that credit or debit payment was recommended and got mostly checks or cc.
 
  • #12
Okay... let's see... is there any way for the host to check her deposit after the show? Can she "see" her deposit slips online to see how much cash she received and the checks? I'm guessing she would have made the deposit at one time (not doing the checks and cash separately). Would that help you to narrow it down?PS: I am like Ann... I don't let the hosts handle any of the money. I don't want them to the 'bank'. Plus, my 3rd or 4th show after I started I had everyone writing the checks to the host and her writing one check to me. She took the money and paid her rent. Before I could contact the guests to let them know what happened, she had already told all of them I stole their money. They believed their friend over me and it was U-G-L-Y!
 
  • #13
The bottom line, the way I see it is you are the one thats out of luck! The host & guest can argue till the cows come home, but you are the one that has to cover the money to PC. When I end my shows, I take everyones money, cash,check,CC. This way I know I have everything. Most of my hosts can't get their own orders straight let alone take care of other peoples money. Personally, I think you should think of a different method of paying. JMHO....
 
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  • #14
I am not willing to change the checks being written to the host. I don't know those people!! I have had too many bad check experiences (2) to make it worthwhile. However, I will make sure that this does not happen again.

I understand that there is a chance that the host could run with the money; however, going in the guests know that their money is being given to the host. So, they know if something happens she did it. Thank goodness I have never had a host do that. Also, the host knows her friends. She knows where they live, work, knows their kids and/or families. I only know what I learn about them in the few hours we spend together. If they write me a bad check and they choose not to answer my calls or emails I'm the one left with a butt-load of legal work to get my money. I don't want that hassle.

Oh, btw, PC has been paid. The host covers their friend's payment and their portion with a debit/credit card.

Colleen, THANK YOU!!! I will suggest he looks back at the deposit from that time to help narrow it down. That will help.
 
  • #15
If you were handling the cash & checks at the show, then how would the host know who paid what cash when you hand it all to them together? Are you putting it in an envelope & writing names & amounts on the outside for the host's records? If so, where's that envelope?I would agree that if the guests were paying the host directly, it's between them. But I can see why they are coming to you if there's a chance you handled the money too. Odds are, the guest has the best memory of what happened. If the guest says they handed you money, they probably did. There's always a chance they could be lying, but highly unlikely. They only had the ONE transaction at the show, so they could probably give you more detail of what happened during checkout.I always record how they paid on the order form. If they haven't paid, I hold onto their receipt until they do pay, or note it on the receipt that they've not yet paid. That way, both their copy and my copy have the same info and there's no discrepancy later. But I have to ask, what's the reasoning for making the host take the cash too? If you already have it in your hand, why not just keep it? Unless it's counterfeit (and you can buy a special pen to protect yourself from that) ... there shouldn't be an issue with the cash coming back to bite you later.
 
  • #16
I figure this is MY business, not the hosts, so I accept all payments AT the show made payable to me. However, I VERY STRONGLY urge everyone to use debit or credit and most do.I request checks made payable to the host for outside orders only. I feel very strongly that accepting payments is not the host's responsibility - I would much rather be in control of the finances. In 6.5 years I've had a handful of returned checks and everyone always repaid me PLUS the bank fee.
 
  • #17
DebbieJ said:
I figure this is MY business, not the hosts, so I accept all payments AT the show made payable to me. However, I VERY STRONGLY urge everyone to use debit or credit and most do.

I request checks made payable to the host for outside orders only.

I feel very strongly that accepting payments is not the host's responsibility - I would much rather be in control of the finances. In 6.5 years I've had a handful of returned checks and everyone always repaid me PLUS the bank fee.

Same here. In fact, of the handful of returned checks that I've had, most of them realized their error before my bank even notified me, and made good on the amount owed before my bank charged me a fee for it. (my bank automatically redeposits bounced checks a 2nd time.)
However, I did have a host who paid for over $600 in orders with a check that bounced. She didn't have the money to cover it because her husband saw the $$ in their account and used it. THAT was a mess.
 
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  • #18
DebbieJ said:
I figure this is MY business, not the hosts, so I accept all payments AT the show made payable to me. However, I VERY STRONGLY urge everyone to use debit or credit and most do.

I request checks made payable to the host for outside orders only.

I feel very strongly that accepting payments is not the host's responsibility - I would much rather be in control of the finances. In 6.5 years I've had a handful of returned checks and everyone always repaid me PLUS the bank fee.

I didn't get that lucky. I think my people with bad checks wrote them intentionally because once the mistake was caught they made no attempts to rectify the situation. And I never got the bank fees back. On one I never got the payment...ever.

Since this is MY business I choose not to accept checks. ;)
 
  • #19
I do take all payments because I don't want my hosts to have to deal with the checks and cash, BUT I know that many consultants who started with PC before I did handle the money exactly the way Chef Kearns does and that is how they were trained to handle the money when they started. Also to prove her point I just had a hunch with a recent check and I happened to ask the teller if the check was good because I realized it was written from my bank. Turns out that the check wasn't good and I have gone back twice and the money still isn't in the account for the check to go thru :( I have NEVER asked them to verify a check in almost 7 years! I got lucky because I asked, otherwise I would have paid a $35 nsf fee on top of not having a check. So there is a risk when you take checks and if you get burned enough I can understand not wanting to take them. Right now a $35 fee would put me under quite a bit. I have had 3 or 4 bad checks over the years, eventually they have all been make right but a few of them were a bit messy. I just did a training show with my NED and at the end before check out she said, "I accept cc or checks but I don't carry cash on me so if you need to pay by cash please just figure the money out ahead of time." I LOVED this, honestly I don't like trying to carry change on me. Chef Kearns I hope this gets worked out, I know how frustrating it is to not be able to remember something like this. Hopefully Colleens idea works :)
 
  • #20
Sandra, you are right. It is your business and you should handle these things the way you want to. Obviously you have learned a lesson about record keeping and I hate that you have to find a way to resolve this which sounds like it may cost you a bit.

Personally, I have them write checks to me before and at the party but to the host after so we can finish up over the phone with plastic. I would rather have a small check bounce than the whole party. In 9 years I have had maybe 6 checks bounce and all but one paid me (including any fees) with apologies. Fortunately I still had the product for the one that didn't. I held onto it too long to return it without cost but I did eventually sell it. I was stuck with the fee though. One fee in 9 years isn't bad and it is tax deductable.

I too encourage payment by plastic and if I am unsure about someone's check I will at least call the bank to make sure there are funds available. I have had people say "cash it right away" or "wait until Friday" and I listen because I want my money! I worry just as much about debit cards with this kind of people but at least I don't get a fee if it doesn't go through although that could be changing with all the new bank fees.
 
  • #21
This is a thought... AND JUST A THOUGHT... I haven't thought it through yet. At a show I did 2 weeks ago, a guest gave me her debit card.. no biggie. It took the host and I 2 full weeks to close the show. Normally I don't hold shows open that long but conflicts with both of us caused the delay. When I submitted the show, there was a declined card. I called the customer and she asked why I didn't run her card *that night* because she had the money in her account then. (Don't get me started on that part). She wasn't upset but expressed that she wished I had run it sooner and then promised me she'd put more money in her account that day and I could run her card the next morning. I did, the card went through and all was good. The show shipped that day! (Way to go HO!)So this thread got me thinking... what about using something like Square (link: https://market.android.com/details?id=com.squareup&feature=apps_topselling_free) to take the cards the night of the show and run them. I'm not sure what the fees are associated with using it (and like I said, I haven't thought this through...) and then submitting the orders via our PC Debit Cards since the $$ would be in our accounts? Then no worries about cards being on hold? The only glitch I could see is if someone wanted to return something, HO wouldn't have the cc on file to make the return (I would have to do that part I guess even though we still have to give HO a cc# for the processing). It might avoid the end-of-the-month-show-on-hold-terror....Thoughts? (Other than the obvious 'it wouldn't work if you don't have a smartphone'... I understand that).
 
  • #22
Sandra,

Unfortunately, I think you are responsible to pay for the products. It is unfortunate, but we have all made costly mistakes. I closed a show without checking the online orders and I had to pay for the additional free products and a 1/2-priced item for the host. You have 2 options: Pay the host full price for the products and give them to the customer or if you think the host has some responsibility, the cheapest option would be for you to do a personal order and have the order shipped directly to the customer. I have done this before for customers when their stone broke and it was not covered under warrenty. You can let the host keep the products that he paid for and let him do what he wants with them. It might make him mad if he doesn't want them and needs the money or he might be happy to keep them. At 30% discount it would be $59.50 for the $85 order, maybe a little more palabale for you. Plus you also made the commission on the original order, so it is not as much as you think.

Hang in there.
 
  • #23
Colleen, not sure what the delay is on that company giving us the money. If it's fast (like 24 hours), that would be cool. But if it's a 30 day processing or something, that wouldn't be feasible for most consultants. Plus we ALWAYS have complainers. So you know someone out there would complain that they paid for it 2 weeks before we placed the order. LOL
 
  • #24
finley1991 said:
This is a thought... AND JUST A THOUGHT... I haven't thought it through yet.

At a show I did 2 weeks ago, a guest gave me her debit card.. no biggie. It took the host and I 2 full weeks to close the show. Normally I don't hold shows open that long but conflicts with both of us caused the delay. When I submitted the show, there was a declined card. I called the customer and she asked why I didn't run her card *that night* because she had the money in her account then. (Don't get me started on that part). She wasn't upset but expressed that she wished I had run it sooner and then promised me she'd put more money in her account that day and I could run her card the next morning. I did, the card went through and all was good. The show shipped that day! (Way to go HO!)

I just tell everyone at checkout that their card isn't run until we submit the order, so consider the money spent. Only once or twice have I had the situation you're describing.
 
  • #25
DebbieJ said:
I just tell everyone at checkout that their card isn't run until we submit the order, so consider the money spent. Only once or twice have I had the situation you're describing.

That's what I do too. I tell them that if they write me a check it's going in the bank tomorrow and if they use a DC/CC that PC will run them when we submit the show in a few days.
 
  • #26
I deposit checks the night of or the morning after the show. I have had 1 bounced check in more than 5 years and was able to pull the order from the show before it submitted. So I was only out the bank fee.
 
  • #27
I do what Jenni and Linda do.
 
  • #28
Wouldn't you know it. Today I get notice that a check bounced (this is number 6 or 7 in 9+ years). They can't tell me which of two for the exact same amount it is until tomorrow but they did say they are now charging me $12 which I will pass on IF the customer pays me. I still don't get why banks charge their own customer when someone else's check bounces. It's not my fault they didn't have the money in there. Uggg. In this case the show is coming here so I can pull the order if I need to so then I'd be out the $12 and the $4.75 shipping. Not cool.
 
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  • #29
Beth, I feel your pain! That is one fee I don't understand either. Why does the person accepting the check take all the risks? That doesn't make any sense to me. Sorry you're dealing with this!!

Okay, now that I've gotten more information from the customers (2 friends put their orders together) I have a better recollection of the events involving their payment. They paid with a $100 bill and I didn't have change. So, the host took the cash and made change for them. So he had the cash that night since he made change. One sticking point is that they (the hosts) will not return my calls or emails. I want to resolve this and hopefully keep a working relationship with everyone. It is stressing me that they won't get back with me. It is frustrating!!
 
  • #30
bethcooks4u said:
Wouldn't you know it. Today I get notice that a check bounced (this is number 6 or 7 in 9+ years). They can't tell me which of two for the exact same amount it is until tomorrow but they did say they are now charging me $12 which I will pass on IF the customer pays me. I still don't get why banks charge their own customer when someone else's check bounces. It's not my fault they didn't have the money in there. Uggg. In this case the show is coming here so I can pull the order if I need to so then I'd be out the $12 and the $4.75 shipping. Not cool.

I agree, the first time I got charged the fee I was really surprised. It doesn't make sense at all. I think my bank charges closer to $25 too:money:
 
  • #31
Wow I had a returned cheque today too! And she has her product....I doubt I'm seeing my money too as she already stood me up for a recruiting interview and wouldn't return any of my calls. Oy.
 
  • #32
Hmmm, I wonder what kind of trouble we could get into if we posted names of the bounced checks in our monthly newsletter until they pay up? Or posted them on our PC web page? LOL
 

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