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Changing of Terms of Business
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Changing of Terms of Business
10/15/09 1:01 AM
Hi People,
I have a little problem. One of my clients has asked for a meeting with me next week with a view to changing rates and terms of business. I don't have much of a problem looking at the rates, however terms of business could be really tricky. At the moment I offer 30 days payment terms. I provide the client with temps and pay the workers weekly. The client has never paid me on time. I have a feeling they want to push me to 45 days payment terms. Frankly speaking it would bankrupt me. The client is less than 12 months old. Any one of you experienced in managing this kind of situations?
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RE: Changing of Terms of Business
10/16/09 3:08 AM as a reply to Rahul -.
Thats a very good point, I wouldn’t change the payment terms. Just stand firm and be polite, 30 days is extremely reasonable and in reality 30 days seems to mean 40 days to most people so if you give them 45 days they would pay you after 60 days. Dont waste your time, and you said it yourself that it would bankrupt you so its not an option is it? If they do knock you down on fees then set a date that the lowered fees end, so for example you can agree to lower your fee but only if they go back up on the 31st December 09 or something like that. Dont let them rail road you into dropping fees that you'll find hard to put up in 6 - 12 months time. Imagine if the person you negotiate with leaves or gets made redundant do you really think the new person is going to give a hoot that you used to work at a higher fee? Good luck with your meeting and dont go in there feeling powerless, politely stand firm and you'll be surprised what you'll get away with ;-) Santosh
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