Title: Avoiding Business Pitfalls: Lessons from a Stiffed Client
Written on
Chapter 1: The Unexpected Client Crisis
Have you ever found yourself in a situation where you felt abandoned, left to deal with the repercussions alone? This scenario can easily fall under the category of "what not to do in business."
For over three decades, my wife has specialized in translating complex technical documents, specifically Japanese patents, into English for various corporate clients, including many Fortune 500 firms. She began her career in an era before the internet, relying on physical documents to conduct her work.
Initially, communication was conducted through hardcopy deliveries, even as faxes emerged. However, both we and our clients preferred the clarity of printed documents over the often poor quality of faxed copies. Correspondence remained primarily through mail or courier services.
Eventually, the advent of the internet and the World Wide Web transformed the landscape, allowing for a more efficient means of sharing documents, conducting research, and accessing dictionaries.
We had a number of clients who worked as translation agencies themselves, effectively making us the "translators' translators." I often refer to "we" because for two decades, I collaborated closely with my wife. She would handle the initial translations, while I focused on proofreading and light editing, incorporating graphics, and preparing the final output for clients. Additionally, I managed distribution and accounts receivable.
One client was particularly enigmatic. We had no physical address for him, as our interactions were solely through email. However, the postmarks on his checks indicated he was based in the Boston area, and interestingly, he had no website.
At first, we approached this client with caution. Nevertheless, he consistently paid on time, never bounced a check, and provided us with a steady flow of work that aligned with our skills and had reasonable deadlines. We maintained this working relationship for several years.
Then, without warning, the work ceased. When we tried to reach out, our calls went unanswered. His fax line appeared to be disconnected. By the time we sensed something was wrong, several invoices had become overdue.
Despite repeated attempts to contact him through phone calls, emails, and mailed requests, we received no response. The outstanding amount was around $2500—an amount that wasn't exorbitant, but represented several days of labor.
After much contemplation, we ultimately decided to let it go. It was difficult to do so; it felt unjust. However, pursuing payment would have incurred more costs than the unpaid balance, and we lacked the time and resources to follow through.
Even though this incident transpired nearly twenty years ago, it lingers in my mind. I often wonder what really happened. Did he intentionally leave us in the lurch, or did unforeseen circumstances befall him? As we had no contact with anyone else in his organization, it seemed he operated alone. Perhaps he experienced a health crisis or had passed away.
This situation remains an unsolved puzzle that crosses my mind from time to time. Have you ever faced a similar predicament? Reflecting on this now, I recognize how fortunate we have been throughout our 30-plus years in business, having been stiffed so infrequently.
The first video, "Stiffed - Run," explores the emotional impact of being let down by clients and the lessons learned from such experiences.
The second video, "Stiffed - Hold Tight," discusses strategies for managing client relationships and the importance of clear communication to prevent misunderstandings.