Yeah man, sad to hear such a bad story. A lot of people don't pay up, no matter the amount.
Police can't/won't do anything, no laws broken. Firstly, do up an official letter (business letterhead, signature at the bottom) informing him that this is last reminder for payment, give him say a weeks notice and tell him that legal proceedings will commence if the money has not been paid. Make sure that it sounds all official, and make it sound that even though its $130 (which, lets face it, is a fair bit of money) you aren't backing down. Make sure its a letter, not an email, as electronic documents won't stand up in legal matters. Keep a copy with you for future use.
After that, if he doesn't pay (in that case you would find out he has an 'I don't give a damn attitude') get in contact with a debt collector (shop around, some offer some good deals over others) and see what they will be willing to do. If you have all your documentation (letter, invoice, proof of work and lack of payment), that will help them no end, especially his address. At the end of it all, you will have your money.
Its a long-winded procedure, but its worth doing right to make sure you get what you are entitled. And yeah, possibly a policy of not releasing goods until money has cleared would work, especially for interstate sales. I thought you did that already though (eg with Glenns MicroEd order)?
Hope this helps mate, like I said you deserve what money is entitled to you
