Ninja Pirate Books

To be paid, as you would imagine is essentially the point at your business because if you aren’t paid, what are you doing in business?

You may be astounded at the heaps of business people who let their clientele to pay them when and if they get on with it. I know a businessman who repetitively collects bad debts like weeds. For what reason? Most likely because he doesn’t bring himself to request the payment and lets people use him.

If you let a client credit, do it only after they have proved their integrity to you by paying cash on delivery (COD) for a time. Moreover, you should gauge whether they have the cash to pay you - otherwise why do business with them. Don’t trick yourself into thinking “I need the work” or “I need the sales”. It’s ultimately doing the job or providing the goods for free if you aren’t paid.

If you are the type of person who can’t ask for the money after the service has been finished, try these hints:
Tell your customer that when all the work is finished up, you require cash or cheque. They will more than likely have it on them at the transacation and you don’t need to demand your money.

When you send the initial quote, be sure your payment terms are simple.

Do up an invoice including the terms of payment clearly listed and send the client the invoice when the service is finished up. They will review the invoice and simply assume they have to pay the fee now without you being required to say a word. Create a “cruel boss” who will flay you alive if you do not go back with the pay for the service.

Set up your bank branch to provide you with Merchant facilities so you can accept credit cards including Mastercard and Visa. The large majority of people have credit cards and it should stop the issue of the client not owning a cheque account or not having the right amount of cash on hand.

Otherwise, don’t be afraid to hold onto the promised goods until after payment has been made. Understand, until they’re paid for, they remain yours.

If you decide you’re going to give somebody credit, be sure you get the following contact details about them some time BEFORE you permit them credit.

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

After you have all this information, call the banking institution and make for certain that they have an account with them. Then, contact every trade reference and request if they pay their bills on time or if they have any dilemmas 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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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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