THREE STRIKES AND YOU’RE OUT STRATEGY
Here’s a secret — slow-paying customers rarely make their best offer first, and collectors who negotiate generally reap more net dollars on those unpaid invoices than those who don’t.
Developing a more focused debt collection strategy and out-of-the box thinking can help you and your organization reduce costs, save time and maximize your resources.
One very effective strategy Dynamic Legal Recovery collectors use is the “Three Strikes and You’re Out” technique.
Strike 1: Ask for entire balance now!
“No! I can only get you half!”
Acknowledge their effort in getting half, but refuse it, send the customer back for more.
“No! I can’t get more!”
Strike 2: Politely refuse and request the entire balance again! Never say yes right away, even if you like their offer.
(You can always back down to a previous offer!)
Strike 3: Make the final demand. Full balance or give them an 80% number.
Wait for the “Swing”.
Remember, the worst you can do is take the 50% offer made.
The secret to being successful with the three strikes method is knowing as much about your customer as you can going in. Utilize credit reports, D & B reports, property files, Private Investigators, etc. This will provide you with lots of ammunition for alternatives when your customer runs out of ideas for where to get the money!
By consistently applying the “Three Strikes” technique in your collection efforts, you will noticeably increase the amount of money you recover per file.
Please visit Dynamic Legal Recovery’s website or call us at 877-777-7564 for your complimentary evaluation.