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May
25

Rule One of Business: Get Paid

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To get paid, you would figure is vitally important in your business because if you don’t get paid, why are you in business?

You would be laughing at the amount of business people who only have their customers to pay up when and if they feel like it. I know of one trader who repeatedly holds bad debts like weeds. Why is that? Most likely because he won’t bring himself to take the payment and people intimidate him.

If you give a client credit, only do it if they have proved themselves to you by paying cash on delivery (COD) for a while. Furthermore, you must see whether they have the means to pay you - if not then don’t do business with them. Don’t fool yourself into the pattern of “I need the work” or “I need the sales”. It’s pointless doing the job or providing the goods for nothing if you are not paid.

If you are the kind of person who can’t request the money after the work has been completed, try these tips:
Tell your client that when the job is done with, you require cash or cheque. They should probably have it there at at the finish date and you won’t have to ask for your fee.

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

Do up an invoice that has the terms of payment evidently stated and give the customer the invoice when the job is completed. They should review the invoice and immediately understand they should pay it off now without you having to say a thing. Fabricate a “cruel boss” who would burn you alive if you can’t return with the payment for the work.

Organise your banking institution to set you up with Merchant facilities so you can accept credit cards including Mastercard and Visa. Many people have credit cards and it would cease the difficulty of the client not holding a cheque book or not having the right amount of cash in their wallet.

Likewise, don’t be afraid to hold onto the promised goods till after you’ve been paid. Understand, until they have been paid for, they remain yours.

If you decide you’re going to give somebody credit, be sure you have got the following contact information of them some time BEFORE you allow them credit.

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

When you know all this information, contact the banking institution and make for sure that they do use an account with them. Then, call all of the trade reference and request if they pay their invoices punctually or if they have had 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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Jan
2

Relationship Marketing Fundamentals

Filed Under Uncategorized

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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