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It's interesting that you got a positive outcome. I also thought about this solution, but I just assumed, that it would work like a fine on them. And if clients
by emmasz 11y ago
It's interesting that you got a positive outcome. I also thought about this solution, but I just assumed, that it would work like a fine on them. And if clients would simply be fined, then they could decide for themselves whether to be late or not. And would obviously frequently choose to be late. And that's not something I want.
Of course, it may depend a lot on how you put it. I guess your clients rather felt a loss aversion and didn't just get comfortable with late payments.
- MrTonyD 11y agoI quoted a price - say 6 thousand dollars, for the job. Then, when I billed it, I would bill for the full six thousand dollars, with the notation of 1/10 net 30 or sometimes 1/15 net 30 (since a few organizations had trouble getting checks out quickly, and wouldn't even try for the ten). So there was only a discount seen by the accounts payable people - and it was never discussed at any time. I don't know if anybody that I actually worked with even knew I was giving the discounts. They were just there to motivate quick payment. At any rate, they worked very well in real life. Never any problems. Just a matter of adding the notation at the top of the invoice.