17 ‘ Namely, the value of any service declines after delivery. ’ Understand a weird quirk about value
18 Understand a weird quirk about value : Before delivery—we want it! Eager and waiting. Afterward, more likely to take it for granted.
19 Understand a weird quirk about value: Particularly true if payment hasn’t been made. Devalues the item or service. Debt collection then becomes more difficult.
20 Understand a weird quirk about value Converse is true When customers pay in advance Or through a payment schedule They are more likely to appreciate the item
21 What to do right now? Before you establish a system like that Adopt some easy changes now
22 Example: 90 days 60 days 30 days 7 days Current
23 This creates the problem! Remove this from invoices or statements. Broadcasts the fact that people can pay late. In fact, up to 90 days late! Adapt an alternative...
24 Example: ‘Thank you in advance for fixing this quickly. It really does help us both reduce the paperwork pile and become even more productive. I appreciate your help with that.’
25 Alternatively: Use ‘due now’ ‘Overdue now’ ‘Due on September 14’ Or a combination
26 Keep it rolling in as arranged! Use ‘direct debit’ funds transfer. Or ‘periodic payments.’ Transfers funds from your customer’s bank directly to yours on agreed dates. Easier for everyone.
27 Keep it rolling in as arranged! : Establish ‘until further notice’ agreement. Customers continue to pay ‘until further notice.’ Decreases time spent collecting debtors. And provides a more even cash flow. Increases ease for customer.
28 Some examples: Refer to your Topic Handout Draft a letter establishing monthly payments Another describing it ‘matter of factly’ Adapted to suit your business
29 One last thing—just do it You have to want to do it. All it takes is ‘positioning.’ E.g., ‘This is how we do it here.’ Payment schedules or advances become the norm. Test it and see!
Your Action Plan: 1.Consider asking, ‘How would you like to pay for that?’ 2.And establishing a membership. 3.Remove ‘current, 30, 60, etc.’
Your Action Plan: 4.Speak with your bank about ‘direct debit.’ 5.Get ‘matter of fact’ about it. Review letters here and adapt to suit. 6.Talk with me if you need any assistance in this area. Further information is available.