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How to Handle Non-Payment

Explore ways to handle non-payment for products. How does handling this situation change if you provide a service? A physically delivered product/item versus an electronically delivered item? How do payment options alter these concerns?

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Non payment for products by the customers may lead to various actions by the supplier. Supplier may demand for return of the products, file a suit, or give time to pay the price, or make a settlement for the product. Difference between service and product organization:
1. Products are tangible, Services are intangible
2. Services are typically produced and consumed simultaneously, But physical products can have inventory. Thus services are inseparable
3. Services are perishable and cannot be stored
4. Variability is much more in services as they depend on who they provide them and when and where they are provided.
(Chopra, page 45)
Thus the return of goods is possible in case of non payment, but this is not there in case of services. As ...

Solution Summary

460+ words explain methods of handing non-payment for products or services. References included.