Delta Recovery Systems Newsletter
Delta Recovery Systems, a Worldwide Collections Agency August 2005
In This Issue


 
CEO Moment

A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort. 

- Herm Albright 

Keep smiling and everyone will wonder what you’re up to. People are suspicious of happiness. I wonder why. Perhaps they are so wrapped up in what they hear on the Evening News that they can’t comprehend that someone can actually find happiness in this world. I believe that I view the world differently than most. I live in New Jersey. If you live in New Jersey and remain sane, that’s an accomplishment in itself, but being happy here is a full time job. Here are a couple of tips: Try not to personalize every tragedy that you hear about. Try to avoid Network News. If there was a murder in California, I don’t think I need to know about it (unless the killer’s final words were “I’m going to New Jersey!). By the way, I couldn’t find a picture of Herm Albright. That’s John Cleese! 

Everything I need to know, I learned from Noah. 

Don't miss the boat. 

Remember that we are all in the same boat. 

Plan ahead. 

It wasn't raining when Noah built the Ark. 

Stay fit. 

When you're 60 years old, someone may ask you to do something really big. 

Don't listen to critics; just get on with the job that needs to be done. 

Build your future on high ground. 

For safety's sake, travel in pairs. 

Speed isn't always an advantage. 

The snails were on board with the cheetahs. 

When you're stressed, float awhile. 

Remember, the Ark was built by amateurs; the Titanic by professionals. 

David Ward, CEO


Greetings

Welcome back for another month of industry information and other tidbits in the Delta Recovery Systems monthly newsletter. This month we'll help you determine "when it's time to say when". We'll also take a lighthearted look at how we can all benefit from a positive attitude. As always, we welcome any comments, suggestions and/or questions you may have concerning our newsletter and industry issues in general.

Comments, Suggestions and Feedback
I know this may sound crazy but if you look at some of the past due balances you are carrying this will prove true. Absolutely NOT you say? I have a few questions for you to answer. Starting with your oldest and largest outstanding receivable:
  1. How old is this account?
  2. How many letters have been sent?
  3. How many phone calls have been made?
  4. How many employees have handled this account?
  5. How many “man hours” have already gone into collection attempts?
  6. Is it cost effective for you to have your employees continue to send more letters and make more calls?

Let’s review the questions one by one:

  1. The age of the account is always the number one question. We are all aware, the ability to collect a past due account drops at the speed of sound. After one year, the chance of ever collecting your account is 29%. (See our Newsletter January 2005 “Collection Advice”)
  2. Many businesses feel that a letter is the least expensive route to follow. If you have a series of collection letters, use them. Then move on to the next step. Otherwise all you have is an endless stream of mail. Letters that go unanswered. You are a wasting your time and time is money!
  3. Phone calls are the best barometer. Use them wisely. If you’re being ignored, hung up on or consistently being put into voice mail, stop the insanity!! A new strategy is necessary.
  4. This is the most time intensive (time = money) part of this process. Every time a new person picks up that file they must read the file to acquaint themselves with the problem. More than likely they will discuss the case with the last person(s) who had the file. We haven’t even gotten to the debtor call yet! When the new person does call, the debtor will probably repeat what they have said in the past. That’s assuming that they even take the call.
  5. The amount of people handling the account whether they are salaried or paid by the hour does not matter. The amount of time they spend trying to collect the past due account is what matters.

Let’s use this “Cost of collecting an outstanding debt” equation. Just plug in a dollar amount for each category:

Age + Letters + Phone Calls + Employees Time = ????

If the sum equals 50% of the amount of the debt, you are losing money!

Delta Recovery Systems exists to help you to win this numbers game. Outsourcing is cost effective and it gives your employees the opportunity to concentrate on the newer more collectable accounts. The accounts they will succeed in collecting!
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