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Rule One of Business: Get Paid

Posted on May 25, 2010 08:18:00 AM

To be paid, as you would realise is vitally the point to your business because if you don’t get paid, what are you doing in business?

You will be laughing at the amount of business people who have their clientele to pay them when and if they remember it. I know such a tradesman who continuously makes bad debts like trophies. Why? Most likely because he cannot bring himself to request the cash and allows people to take advantage of him.

If you give someone credit, only do it when they have proven consistency to you by paying cash on delivery (COD) for a time. Secondly, you must check whether they have the cash to pay you - otherwise why do business with them. Don’t fool yourself into saying “I need the work” or “I need the sales”. It’s pointless when you do the job or providing the goods for nada if you aren’t getting paid.

If you are the type of person who can’t request the fee even after the service has been finished, try these tips:
Tell your client that when the service is completed, you need cash or cheque. They will be likely to have it to hand over at the transacation and you don’t have to request your payment.

When handing out the quote, be sure your payment terms are clear.

Create an invoice including your terms of payment plainly printed and give the client the invoice when the work is finished. They can look at the invoice and generally understand they have to pay for it now without you being required to say anything. Manufacture a “nasty boss” who may flay you alive if you don’t go back with the cash for the service.

Set up your bank branch to hook you up with Merchant facilities so you can have credit cards like Mastercard and Visa. The large majority of people have credit cards and it will cease the difficulty of the customer not having a cheque book or not having the cash at the time.

Alternatively, don’t be frightened to keep hold on the promised goods till after you’ve been paid. Don’t forget, until they’re paid for, the goods remain to be yours.

If you choose to give somebody credit, make sure you take the following details about them at a time BEFORE you let them credit.

  • Name
  • Address
  • Phone number
  • Bank name and address
  • Account no.
  • 3 trade references with their names, addresses and phone numbers

When you record all this detail, contact the branch and make for certain that they do operate an account then. Then, ring each trade reference and ask if they pay their invoices correctly or if there are any problems with them.

Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.

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Relationship Marketing Fundamentals

Posted on Jan 2, 2010 06:56:00 AM

As a customer service concept, relationship marketing is not new. For decades, business-to-business marketers have employed account managers who have the responsibility to dedicate themselves to key clients. In the financial world, `relationship banking’, whereby high-yield customers are assigned a personal manager, has been practised for many years.

When direct marketing is embraced to establish connections or relations between the marketer and the consumer, it is too easy to suggest that all forms of direct marketing communications achieve a closer relationship, a closer bond between the two parties. Such a conclusion exaggerates what generally happens in the marketplace.

Direct marketing is all about generating a direct response from the consumer and about direct communications to the consumer. A direct response is needed to generate better understanding of the advertising message or to motivate transactions. Direct communication is simply about media reach efficiency. Relationship marketing is a concept that transcends these pragmatic direct marketing objectives.

Kotler appropriately positions the concept of relationship marketing as one which applies principally to business-to-business situations:

Smart marketers try to build up long-term, trusting, `win—win’ relationships with customers, distributors, dealers and suppliers. That is accomplished by promising and delivering high quality, good service, and fair prices to the other party over time.

It is accomplished by strengthening the economic, technical, and social ties between members of the two organizations. The two parties grow more trusting, more knowledgeable, and more interested in helping each other. Relationship marketing cuts down on transaction costs and time; in the best cases, transactions move from being negotiated each time to being routinized.

Outside of `membership’ or `continuity’ programs, there are two basic ways to approach consumers. The first is with a product and price combination considered to be `the standard’. That is, the proposition is essentially of long standing and relies on the features and benefits being competitive. The second way, normally of short-term duration, is a `special offer’. Direct marketing textbooks are full of the theory, practice and case histories relating to `the offer’.

The choice of basic propositions or selection of special offers depends on the circumstances of the individual firm and its competitive environment. The right proposition or offer can make a world of difference to response cost-effectiveness.

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