You have a few choices... with the first one not being a good one.
- You can tell them these are your terms. Like it or leave it.
- The way in which they run their business has no bearing on how you run yours.
- This project is a project for your company and we are not financing your business. Please pay the required 50% deposit in order to finance your own project so we can get you on our schedule.
These huge companies make money by NOT using their money... or a little as possible. They want to use your money so their investment stays safely in place.
You must be willing to walk away from all business according to which stance you take. You caved in last year and now they now you're desperate.... or at least appear desperate. They will continue to do this, unless you stop them now.
We have a few customers that spend well over $20,000 to $550,000 at a time with us. They pay a 50% deposit with a balance paid upon completion, but we do give them a 10 day grace period for mailing and other incidental reasons.
Be stern/firm, but be professional and don't let this become a male vs. female debate. Otherwise you'll lose immediately. When someone pulls the race card, minority card or any other prejudiced prank with me.... I refuse to go any further. So, try removing some of your comments out of the equation and your tone when speaking with him.
Good Luck.........
Gino,
I have no intention of caving, and will respond in a firm but polite manner. I'm just putting it off till Monday so I can adhere to the polite part. haha. The guy has No sense of humor, (typical accountant type). Your 3 points are right there with my line of thinking. Not sure where you saw the male/female issue?
My company is a one-woman show with part time helper when I'm very busy and he knows that. I can think of many things to say to the man,
I have 4 more trucks ot of 7 already on contract, 3 done, one paid in full, waiting on 2 finals and the others to be completed as they're built so will be doing business over there until October. He had no issues with paying a 15K deposit on all that and now wants to cry about $975.
I think it's a power play on his part to get me to change my deposit policy. It's not worked for him before but he doesn't stop trying....
It came across to me instantly as a reverse chauvinistic remark. Anyway, it sounds like a nice account.
We had a customer, which has been a customer for over 25 years. The owner and I sat down one day and hashed out new terms about 10 years ago. He simply said he didn't want to pay a 50% deposit. I said, me neither.... at least not for your company. He was too big to do this and then pay a second check a few weeks later. It became a bookkeeper's nightmare. I asked him why he thought it fair for me to finance his [
rather] large company ?? He said, well you have nothing invested but some vinyl and a man's labor. Do you mean you can't afford to do that ?? I looked at him and said.... of course I can, but than I'd have a problem. See, we have many of these same kinds of projects going on at any given time of the year... all year long. Then little ol' me would be financing all these large companies and not getting reimbursed for it one penny. As things add up and someone is a little later and later and later.... I'm out everything.
Okay Barry, here's what I'll do for you. You don't pay me a deposit, I add about 8% to the overall amount and you promise to pay me
In Full before 10 days pass from the date on my invoice. He said fine. It all went hunky-dory until about two years ago. The company is in financial trouble and the new guy that does the ordering is doing everything by the book. He has to get three bids on everything and needs 45 days terms with no deposit. I tried to pull rank with him and tell him we've been doing your work for 25 year and Barry and I have a standing agreement, so I won't play by your new rules. Got a call from Barry's secretary asking me if I would give a quote and reconsider our terms. I said, no not at all. I've had an agreement with Barry for all of these years and I don't care what problems you're having, you're still far larger than me and I can't finance you guys. Got a call from the dispatcher a few days later saying...... we have to do this by the book, but if you put on your invoice the terms, we will have to abide by your conditions. To this day, they are still a good customer, but I had to either back down and accept their fake terms or stand my ground.
This had nothing to do with winning or losing.... we had the account, but sometimes as you mentioned.... people can get head strong and you just need to be able to walk away and not look back. It's more about strategy.
We had service, price and quality going for us. However, we didn't have their terms. I was not about to back down, although I desperately wanted to keep their account, but couldn't show it. I would've walked.
