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Receivables will be extraordinarily high for many of you. Don't wait for customers to be in arrears before you act. Deterrence is your best friend. The easiest group to work this with are your customers on either a cap or fixed rate plan, because they have the most to lose. What's more, many of them don't even realize how much they're saving. They know they're doing better, but not necessarily how much better.
So kill two birds with one stone. Send them a letter which tells them how happy you are that they enrolled in your program, because the average street price in your area has gotten as high as XX, and your average customer is saving $SSS. (They can compare the street price to their own number, and this helps you if you have more than one program price out there.) Then segue into your pitch. "Please remember that your cap rate is only valid if you pay according to credit terms of xxx. If you are late in your payment, we will be forced to REBILL you for the delivery at the regular price, which is 42 cents higher right now. So if you're having any difficulties, please contact us immediately.
The key is to make sure they understand that they will not pay more for their next delivery, but for the one they already received which has not been paid for. Also, you don't need to go hardcore with the letter, since it's addressed to all your program customers as a deterrent. We did one with the title "We're protecting you from the highest oil prices in history. Now there's something we need you to do-pay your bills on time. We acknowledged that even with the price protection, their bills are still high. However, we explained how we must pay for the oil within 10 days of receiving it. We even asked customers to go from paying in 30 days to paying in 20. And you know what, many of them did it. Not everyone, of course, But it's amazing what your customers will do if they feel you are really on their side.
Have a similar letter that your customer service people can send out after a conversation with a customer about bills. Again, don't make it hard core, but be direct. It can make up for some of the incomplete communications that happens between your credit people or CSR's and customers.
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