For the guys running rug shops

KevinL

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Jan 5, 2007
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2,928
Location
East Peoria Illinois
Name
Kevin Leach
Do you have a number of customers that don't ever come back to pick up their rugs? What do you do about them? Do you have policies in place to get paid or do you sell their rugs after awhile? How long?
 

Brian H

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Dec 14, 2006
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3,722
Location
Detroit Michigan area
Name
Brian H
We have a policy set up to take care of that very thing. According to a set of public act in Michigan you can dispose of items left for processing after 180 days. We have that statement posted in all our rug drop off locations.

When an order is complete, we will call the customer to let them know it is complete and ready for pick up. This call, as well as all calls we make, is logged with the order notes.

Once a month after that we make a call to remind them to pick up their order.

At 11 months, we send the customer a certified letter indicating we will be disposing of their order within 10 day. After we have waited 20 days, the Rug Care Manager himself makes a final call to the customer and lets them know we will be disposing of the rug in 48 hours.

If we have not heard back from the customer we will "dispose" of the rug(s). Most "disposed" rugs are sold in lobby of our Rug Care area of our cleaning plant.

You would be surprised at how easily most of those rugs sell. When customers are dropping off rugs for cleaning they can check out the used rugs, which in some cases are better then the rugs they are dropping off. In those cases, some will even take their own rugs back to throw away and buy the used piece. We even have some customers come in periodically just to check out to see if we have any current disposed rugs for sale.
 

Brian H

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Joined
Dec 14, 2006
Messages
3,722
Location
Detroit Michigan area
Name
Brian H
Brian, if they do come and pick the rug after a long while, do you charge a storage fee?

We don't as of right now, though we are considering that in the future. About a year and a half ago, we started collecting a 50% deposit at the time the rugs are dropped off. That seemed to help to reduce the amount of rugs that are abandoned.
 

Desk Jockey

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Oct 9, 2006
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64,833
Location
A planet far far away
Name
Rico Suave
We work hard trying to get rid of the but no matter what we always end of with a stack of junk. There might be a diamond in the rough but even those usually have a stain, urine damage or dry rot. Why people go to the trouble of having it cleaned and then leave it are beyond me.

Storage is $10.00 a month on overdue rugs clocked 30-days after completed. We DON"T want to be in the rug storage business and like Brian will send a certified letter but it seems those people don't pick them up move, maybe even out of town.

It's rare but we have had a few call for there rug several years later, sometimes we have it, sometimes we don't. Even then some people never pick it up after calling. :hopeless:
 
Joined
Mar 29, 2008
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9,567
Location
Hawaii
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Nate W.
We would have people drop off and leave rugs over an extended period of time.... Some times years too... When we implemented our 25% off cash and carry, we get paid upfront for the cleaning.... That in itself, has reduced the number of abandoned rugs in our shop.....

We call and I'll even take rugs back on the weekend, if timing is a problem for some customers..... We always offered a 25% off cleaning, but didn't collect any money until pickup... Our cash flow has been a lot better too...... We also have it written that it's $10 a month per rug for storage..... We never did have the heart to charge someone for storage.....

Hopefully this helps... It's easier to get money upfront and reimburse them back if not satisfied.... Set the expectations and you won't have a problem....
 

The Great Oz

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Joined
Nov 25, 2006
Messages
5,291
Location
seattle
Name
bryan
Our insurance company has let us know that anything stored longer than 90 days will require an expensive rider (since we would be admitting that we're in the storage business) or won't be covered. 30 days after completion of work they lose the cash and carry discount, after which we may as well deliver the rugs. Scheduling delivery to anywhere they want in our service area is the next step.

If calls and a certified letter get no response we'll evaluate the rug again. If there is enough damage that we don't think the rug would have value to anyone but the owner, we'll document the post-cleaning conditions and dispose of the rug either to charity or dumpster. If in good condition and with some residual value we'll continue to try and contact the owner. After six months we sell the rug.


But... An order with a lot of very high value rugs is probably going to sit a long time before we'd be comfortable selling them.
 
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Deleted member 51539

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Take a cue from storage wars... there are legal means for disposal.

Sell it yourself = risk of civil lawsuit (conversion)
 
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