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Big guy hits little guy. Self-prescribed discounts.

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Steve Kownacki
Big guy hits little guy. Self-prescribed discounts.
on Jun 11, 2009 at 12:16:17 pm

Ahhh, yet again the big corp takes advantage. I got a check from a decent customer and couldn't figure out why the amount didn't match my receivable. While my invoice was pay before delivery, they took it upon themselves to take a 2% discount this time. I'll deliver (and make it up later) or maybe I should email a statement for the balance. Don't get me wrong, I'm glad to have the money and the product still in my possession, but gee whiz. Maybe I'll only deliver 98% of their tapes. ;)

Steve



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Todd Terry
Re: Big guy hits little guy. Self-prescribed discounts.
on Jun 11, 2009 at 2:14:57 pm

Actually Steve... while I don't recall that issue ever having been brought up on the COW, in the rest of the business world that is extremely common.

A lot of people bill "2/15 Net 30"... meaning the full balance is due in 30 days, but if a client pays within 15 days they can deduct 2%.

The problem is, a lot of big corporations (and especially a lot of government agencies) take this deduction anyway for early pays, even if you don't stip it on your invoice.

You can try to recover the 2%, but I remember a story of several years ago where someone tried just that (it was with a government client) and they simply wound up beating their head against a wall and wading through a mountain of red tape. In the end they spent time worth far more than the 2% trying to recover it... which they never got.


T2

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Todd Terry
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fantasticplastic.com






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Steve Kownacki
Re: Big guy hits little guy. Self-prescribed discounts.
on Jun 11, 2009 at 2:17:59 pm

Yep. Which reminds me of a good business practice: Never lower your price, just reduce the amount of services to meet a budget.

I tried the 2/N10 one time years ago any you still wait for money and they take the discount.

Saw on a photographer's website yesterday: "Due to these uncertain economic times, we no longer offer terms to anyone; we require 100% payment upon delivery of goods; credit cards accepted for your convenience". While that'll cost you 3%-ish, you can calculate that in your original budget.

Steve



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Steve Wargo
Re: Big guy hits little guy. Self-prescribed discounts.
on Jun 12, 2009 at 6:38:22 am

If all of my people would pay 2% net 10, I'd be all over that. As long as it's a check and not a cc.

Steve Wargo
Tempe, Arizona
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