Sign Company Owner and Cash-Poor Client-Friend

AS HIS TRUSTED SECOND in command handed a new order from Regional Motor Cars to Vince Pellegrini, owner of Pellegrini Sign Co. in Vineland, NJ, Vince took a deep breath and thought, “Well, it’s decision time.”

What led to this point, dear reader, began 38 years before, when Vince met Dave MacAlister, the owner of Regional Motor Cars, on one of the little-league baseball diamonds adjacent to their church — Vince playing second base and Dave shortstop. Though the two attended different grade and high schools, they remained in contact through sports until high school, as the church teams only went through eighth grade.

Vince had graduated with an associates degree in business from the local community college, to help him run the sign business he started from scratch at age 21. Over the years, Pellegrini Sign grew into a full-service shop employing 27.

During that time, Dave had earned both a bachelors and MBA from Impressive University. After buying and turning around a foundering auto dealership, Dave opened additional dealerships featuring different brands, first in Philly, then later with locations in DC and Baltimore as well.

They say, “parallel lines never meet,” and they don’t. But the parallel lives of Vince and Dave, which had last converged 13 years before, were about to align again.

Dave called Vince out of the blue after the sign company he had been working with let him down on one deadline too many. “I had my finance guy — my ‘fi-spy,’ as I call him — check out your operation,” Dave said. “Really nice to see an old friend from St. W doing well, Vinny!” Relieved to have passed to the unexpected background check, Vince said, “Well okay, Dave, sounds good. Let’s talk about signs…”

From that initial conversation bloomed a lucrative and growing account for Pellegrini Sign, which was committed to filling every order from Regional Motor that it could. Vince admired (to a degree) Dave’s willingness to take risks to expand his business, and by extension, Pellegrini Sign’s business. Yet Vince felt fine that he lacked the… whatever it is to take risks like Dave. Vince had required 18 months coming to grips with replacing an aging router.

For a solid dozen years, Pellegrini Sign kept meeting deadlines and pleasing Regional Motor Cars, and reaping the benefits of a customer that had become a tri-city auto dealer. But year 13 proved as unlucky as advertised. Dave had taken a big risk and it was one that exposed a thousand little cracks in his business’ previously purring engine block.

Dave had overbought the disastrously unpopular Syber Tank and found himself with a company-wide cash shortage. Vince’s “finance guy,” his trusted second in command, had been monitoring the slower and slower payments, and then partial payments.

Vince and Dave exchanged many texts, emails and calls over the course of the year, with Dave acknowledging the obvious but claiming that if he didn’t keep up a regular sign program, he’d be at a disadvantage versus his competitors. “I need the signs to make the sales,” Dave often said.

Vince proceeded cautiously as the year continued, but still filled orders somewhat out of loyalty and somewhat out of faith that the old shortstop could conjure some of his magic again.

But the magic eluded Dave and he was hemorrhaging cash moving the Tanks at fire-sale prices. “I just need to clear this loser inventory so I can get the next thing in,” Dave told Vince with increasing worry in his voice.

Then the payments from Regional Motor stopped. Messages were sent in the place of money, stating that payments would resume and that Regional would add 1.5% in monthly interest when that happened — “very soon.”

Vince tried to call Dave, but couldn’t reach him for a day or two so he emailed. “I appreciate your situation and our long-standing relationship,” Vince wrote, “but the payment situation is fairly untenable now.” Vince called upon every skill he could remember from English Composition at the community college to try to be both clear and, at the same time, not blaming Dave. He didn’t want to leave this to ChatGPT.

Dave replied to the email a few hours later. “Dave, you wouldn’t cut off the old shortstop, would you?” Afterwards, two weeks passed during which one or more orders from Regional would usually arrive. But then an order did arrive.

“It’s decision time,” Vince said.

Paul B.
Brooklyn, NY

It’s very simple. Good people and good business people will make payments in any amount to show good faith. If not, they are not going to pay you at all. They will go someplace else and start again. Increase the pricing and demand full payment on all new orders on pick up or delivery. Make demands on payments every week until you are paid off. Cut him off and lose him as a customer and friend, but friends like this are not needed. Let another sign company do the work and lose money. Lien the business and property and person. They are not your friend anymore. They stole your money. If you did not pay for a car he sold you, he would take it back. The friendship is over.

Susan U.
Salisbury, MD

Oldest trick in the book… It’s a huge red flag when a new client blames another signshop and is looking for a new shop. Most of the time it’s because they owe the other shop money. I make it a point to stay friendly with most of my competition in my area and have been known to call to ask about a previous client. Take him to court, you’ll get your money. Business is business.

Brian G.
Salina, KS

At this point Vince needs to tell Dave no further orders will be processed until all balances due are paid in full. Dave has put Vince through this for a year already and that’s too long. Sounds like there were payment terms, and Dave has violated those. We have had a few customers over the years who are on terms and have not made payment by the due date. They are given some grace if they have typically been good for the money. However, they are contacted and told that no future orders will be produced until payment is made (when we don’t receive payment after attempts to get them to pay). We cannot put our business in jeopardy because of someone else’s poor decisions with their business. And sometimes you just need to fire a customer if they are problematic. Even if they are a friend.

Wendy A.
Austin, TX

Vince should stay true to both his friendship with Dave and the needs of his business by being honest and direct. He should explain to Dave that business decisions can’t be based solely on friendship, and that after a full year of payment issues, taking the next step is overdue. Vince can offer Dave a reasonable payment plan to help him catch up on what he owes. Once Dave completes the plan, they can revisit their previous ordering arrangement and evaluate whether Dave’s motor company is in a position to resume the financial responsibilities that come with it.

Nancy W.
Vernon, BC, Canada

Always tough working with/for friends. But as a supplier it’s all about the numbers. If you don’t make a profit, you don’t stay in business. Your “not-paying” customer is not going to be concerned about you and can hop to other signshops if desperate for signs. No more signs till payment, and give a deadline before sending to collections. Someone once said, “Which one of your kids isn’t going to eat today?” when it came to bill collection. Been there…

Tammy G.
Greensboro, NC

I would place all orders on hold until a payment resolution was made, and I saw that Dave was intent on making payments for signs he already had. Once he showed good faith, I would start making signs again, but with payments to be prepaid. We have had to do this with more than one company.

Robert G.
Tampa, FL

This situation is tough because it mixes friendship, loyalty and survival — something almost every shop owner has faced at some point. At this stage, Vince has to separate emotion from operations. When payments slowed and then stopped, the relationship effectively changed, whether anyone wanted it to or not. Continuing work without a clear plan only increases risk and makes a difficult outcome harder. The responsible move is to pause new orders and have a direct, professional conversation about next steps. That might mean deposits on all future work, a documented payment plan, or temporarily holding production until past-due balances are addressed. None of those options are punitive — they’re necessary for the health of the sign company and its employees. What this situation really underscores is the importance of having clear internal policies before they’re needed. When rules are defined ahead of time, decisions are no longer personal — they’re simply business. Handled properly, boundaries don’t end relationships. They often save them.