Client discounts for on time payments
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- bklyndroobeki
Good practice or incentive to provide discounts for on time payment for clients?
What's QBN'ers thoughts on this?
- bklyndroobeki0
Clarifying...
*Is it a good incentive to provide discounts for ontime payments from clients? Say 3% off the invoice?
- omahadesigns3
What? If you're nice, you won't charge late fees.
- bort4
Feels like it's rewarding them for doing something that should be standard. It's not rewarding good behaviour – it's rewarding them for doing what's expected of them.
I think more common is applying interest to overdue payments.
I could be completely off though.
- omahadesigns1
Good practice or incentive for clients to provide raises for on time delivery for designers/programmers?
What's QBN'ers thoughts on this?
- yuekit1
I think it risks coming off as slightly insulting. Makes it sound like you have trouble collecting payment from clients.
- I can see that!bklyndroobeki
- This. You should expect to get paid on time. Hopefully you give them a window of a few weeks.freedom
- bklyndroobeki0
Yeah, I totally agree bort, omaha,
Just took a little Freelance Biz refresher course off TeamTreehouse, it was something that the instructor mentioned... feels like it might be a bit cheapening, not sure if I'm totally on board with the idea.
- pango7
lol
if they pay on time. they get a star sticker!
- lol!bklyndroobeki
- Lol I've been trying to find a reason to use these stickers!! Was gonna use it on part time interns! But I guess I'll use it on clients LOLOLpango
- http://thumbs.dreams…yurimon
- Oh I was think this...
http://ashevilleblog…pango - :)bklyndroobeki
- freedom0
Do you get a discount from you phone, mortgage or electric company if you pay your bill on time?
- formed0
I don't think it's a good idea, seems kinda petty to me.
Clients should pay on time, but a lot comes down to the accounting department or when something is late , lack of communication between your "client" and their accounting department.
Many times it is necessarily in their control when checks are paid, companies have policies, however silly they are (pay only on the first, etc.).Just make sure to put "Due Upon Receipt" on your invoices. Some accounting departments take that literally, so if you have due at 30 days, they'll wait 30 days.
- fyoucher10
Heh, being paid on time is rare for me. In some cases, some of the bigger clients pay extremely late (think 180+ days). But at the same time, they're providing constant work and it doesn't become noticeable once they all start coming in. However, some of them will pay early if you do provide a discount but it's something the client typically needs to know well ahead of time if you actually want it to happen, especially if they have a procurement dept. Good luck trying to collect late fees and maintaining that client. I think the discount is a great idea but wouldn't recommend actually doing it, unless you're strapped with cash. Why give away money. I think the best thing to do is be persistent, give reminders, and bug the shit out of them (nicely). Agree with Formed on the 'Due Upon Receipt' thing but he forgot to mention bolding the shit out of that. Yeah, you don't get discounts for paying early on your utility bills, but I wouldn't consider clients, the people paying you moneys, as the same idea.
- comicsans0
I have 28 day terms and credit them 5% if they pay within 14 days. Comes off their next invoice.
- 20020
you should charge more for delivering work on time
- mekk0
3% when paid within a week is a business standard almost everywhere else.
- freedom0
Unless you're paranoid about losing the client, don't do this.
/ thread
- jtb260
This thread should be called "Client penalties for paying late".
