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Big guy hits little guy. Self-prescribed discounts.
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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3 Replies
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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
Creative Director
Fantastic Plastic Entertainment, Inc.
fantasticplastic.com
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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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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
It’s a dry heat!Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
2-Sony EX-1 HD .
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