ask questions. negotiate. and be ready to cut your losses.
by michelle long and sandi leyva
how many times have you been unable to collect from a client?
more small firm growth strategies: the dreaded ‘quick question’ | how to manage client expectations | how to handle price sensitivity | how to handle referrals – and how not to | trashing the spreadsheet: best practices in modern expense management | how to find hidden money for your clients | why clients need dashboards | 3 ways to implement value pricing | how small firms can use value pricing | 3 ways to raise your prices | building reputation to build your business | 3 killer lead generation channels | your existing clients are your best leads | need more business? focus on referrals
when we asked this question in a poll, 26 percent of you had never gotten stiffed from a client… yet.
that’s good. but a lot of us have gotten stiffed or burned when we’ve not collected money from a client. it’s happened to us.
if you’re one of the smart ones it’s only happened once and never again.
what do we do when there is a billing dispute? first, yes, get paid up front and that’s a good policy.
let’s talk about some situations where there is a billing dispute. first, if you have a big job and they want you to do some cleanup or catchup work and you estimate it will be a minimum of $2,000, you want them to pay you $1,000 up front before you do the work. if they’re not willing to pay you $1,000 now what makes you think they’ll pay you $2,000 later? right, so they should be willing to pay some money up front.
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