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Beunderstandingbutdontletclientsproblemsbecomeyourproblems.HOWTORESPONDTOGENERALREQUESTScashWhenitsupportsacauseyoubelievein.Whenyoudesperatelyneedwork.Whenitencourageshighervolume.Whenitprovidesanentre.Whenitproducesgood-willbenets.Whenitsubstantiallyreducesacquisitioncosts.Whenitresultsinfasterinvoicepayment.Whenitresultsinalargerupfrontpayment.13midwayandthebalanceuponcompletion.Offeringa2discountfora50ratherthan33upfrontpaymentmightmakesensebecauseitspeedsuparmscashow.Adiscountformonthlyinsteadofprogressbillingisalsopossible.Itwillsmoothoutcashowbutitmightnotbecosteffectiveduetotheexpenseofaddedpaperwork.Thisfallsintotherealmofemotionnoteco-nomics.Onlyyoucandecidewhetherworkingatadiscountforanorganizationwillprovideenoughsatisfactiontooffsetthelostincome.Therearethoughtwothingsthatneedtobekeptinmind.1Itisself-defeatingforabusinesstomakecharitablecontributionsuntilitisstableandprotable.Dontriskyourfuturebydoingagooddeed.2OnlycontributionstocharitableorganizationsaretaxdeductibleintheUnitedStates.Otherdonationsare100gen-erosity.Weputthislastbecausenecessitytrumpsallotherreasons.Sometimesanyincomeisbetterthannone.Youhavetodowhatyouhavetodo.Weunderstand.Butwealsowanttocautionagainstacqui-escingtooquickly.Aclientmightbejusttestinglookingforabetterdeal.Andanylaborhourscommittedatadiscounttodaywillnolongerbeavail-abletosellatfullratewhenmorebusinesscomesin.Mostprojectsrequiresomenego-tiationwiththeclientaswellassomepricemodication.Forthereasonsabovehoweverdis-countingshouldapplytoonlyaveryfew.Whennothandledcarefullythetermimpliesdiscrim-inationagainstclientsnotsofavoredanditdownscalesacally5to10makessoundbusinesssense.Itdependsonthecircumstances.Anydiscountshouldhowev-erbeonacase-by-casebasisandexplainedtotheclientasanexceptiontonormalprac-tices.Thisnotonlyimposessomedisciplineingrantingdis-countsbutmoreimportantitemphasizesthattheclienthasreceivedspecialconsideration.Thearticledescribedintheinsetonpage5covershowclientrequestsfordiscountsbasedonthevolumeoftheirbusinesscanbehandledinawaythatisbenecialforbothparties.Theonlydownsideistheriskofconcentratingtoomuchofthermsincomeinoneplace.Somebusinessesandindustriescanbetoughtobreakinto.Offeringoragreeingtoadiscounti.e.loweringtheclientsriskfactorcouldmakeallthedifference.Whateverincomeisgivenupcouldbemorethanmadeupthroughgettingtoknowtheclientgain-ingindustryexperienceorobtainingaportfoliosample.Theriskofcourseisthepossibilitythatthespecialdis-countwillsomehowbecomethenorm.Occasionalpro-jectsespecialpublicserviceoneshavevisibilitypublicityandreferralbenetsthatcanoutweighanyincomelost.Howmuchtodiscountthemrightupto100probonodependsontheprojectedimpact.Therearetwodangershere.Oneisoverestimatingtheimpactoftheproject.6CreativeBusinessMarchApril2008Theotherisunderestimatingtheworkinvolvedandforget-tingthatthelessclientsinvestinaprojectthelessattentivetheywillbetotheproducersyourneeds.Whenatypicalrmsmarketingcostseverythingfromwebsitestosalespitchesaretalliedandproratedtheycanaddupto20ormoreofthefeebillingforeachclient.Giventhisprovidinga5to10dis-counttoanexistinglow-main-tenanceclientcouldbeaverycost-effectivewaytobuildtheirloyalty.Theabsenceofacquisitioncostsforagencyandotherthirdpartyworkalsoprovidessomepricingexibility.Thecaveatinbothcasesissimplythattheworkhastobeprotableenoughtoaffordthediscount.Paymentdelaysandpreparingmultipleinvoicesarecostly.Soafast-paydiscounttospeedthingsupcanmakeeconomicsense.Themostcommonisstatedoninvoicesas210Net30.Thatiswhenpaidwithin10daystheclientcantakea2discount.Fullpaymentisotherwiseduewithin30days.Heretheriskisthatclientswilltakethediscountandstillpayontheirnormalschedule.Thuseffectivenessdependsonenforcement.Thisiseasierforrmswithprofessionalbook-keepersbecauseiteliminatesanyreluctanceofaprincipalaboutrebillingashortfall.Mostrmsbillprojectworkinphasestypi-cally13ofanestimateatstart