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Diplomacy and discounts

 
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Philip Banks
Je Ne Sais Quoi


Joined: 20 Jun 2005
Posts: 11048
Location: Portgordon, Scotland

PostPosted: Sat Sep 10, 2005 1:15 am    Post subject: Diplomacy and discounts Reply with quote

Sometimes it's hard to do the right thing but this morning I had to make a business decision.

A cheque arrived this morning in payment for some radio commericals, 3 in total. Attached to the cheque was a note.

"Two commercials + 1 very short tag". The cheque was 25% less than my invoice, the client had in effect decided to give himself a discount because a tag is not a commercial. If by adding a (tag)line it is possible for a new commercial to be produced, then they pay for one new commercial - It's not complicated, is it?

In this business, like in any others, tough choices have to be made and one of them is with whom you do business. My response to the cheque follows ....

"Dear ......

I received a cheque this morning, many thanks. The cheque for £X was in settlement of my August invoice in the amount of £Y. Whilst I can see why this was done I believe it was wrong to make a deduction without asking me first. I accept the cheque in full settlement of my invoice for August 2005 and in this instance will not be asking for the balance.

It's obvious that there is a problem in your station with the way I charge for voice overs, the market is competitive and budgets are tight so perhaps it may be worth considering if it makes commercial sense to continue using me.

Many thanks for the support over the last year or so, I wish you and your colleagues continued success.

Philip"
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BBeen
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PostPosted: Sat Sep 10, 2005 3:57 am    Post subject: Reply with quote

Phillip,

I truly believe that you did the right thing. This kind of thing can only set a precedent for future bookings for this client. The client was properly invoiced and I am sure that they were aware of $$ or pounds before the gig. Kudos for sticking to your guns.
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Philip Banks
Je Ne Sais Quoi


Joined: 20 Jun 2005
Posts: 11048
Location: Portgordon, Scotland

PostPosted: Sat Sep 10, 2005 1:45 pm    Post subject: Reply with quote

Earlier this evening an email from the boss of the radio stations

"Hi Philip,

We have no problem at all with the way you charge for voice overs, it
was simply a slight error within our admin department
which I will personally look into myself on Monday morning.

It is you and people like you that give our customers the type of
commercial that gets them returns and I wish to keep using
you as a voice over for both stations.....

I understand fully why you are annoyed at the situation and promise that
I will get the problem resolved ASAP.

Thanks,"

Proof if proof is needed that one can never doing wrong by trying to right.
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Gregory Best
The Gates of Troy


Joined: 04 Aug 2005
Posts: 1853
Location: San Diego area (east of Connie and south and east of Bailey)

PostPosted: Sun Sep 11, 2005 8:44 pm    Post subject: Way to go Phillip! Reply with quote

In my other career (with the local government) I deal with extracting money (penalties) from business for violating the law. I frequently find problems as you have that are with some bean-counter accountant type. As soon as the discrepency is brought to management's attention, things are quickly rectified, usually with an appology.

Keep up the professionalism.

Greg
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craigieb
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PostPosted: Thu Sep 15, 2005 6:12 pm    Post subject: Reply with quote

Banksey,

Translation? There was no mistake...you called their bluff and they caved!

As I learned from listening to some negotiating tapes about 20 years ago, you always have to be prepared to walk away. You probably scared these people to death, thinking they were going to lose you. Brilliant move!

It's hard for me to believe that it was a "mistake" in accounting. Somebody who knew about production directed that the "mistake" be made. I wouldn't think that bean-counters would know to discount that way unless somebody told 'em.

But as others have said, congrats to you for drawing the line in the sand. I think if all of us keep doing things like that, it'll only be better for everyone concerned.
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Gregory Best
The Gates of Troy


Joined: 04 Aug 2005
Posts: 1853
Location: San Diego area (east of Connie and south and east of Bailey)

PostPosted: Fri Sep 16, 2005 11:29 am    Post subject: Being able to walk away Reply with quote

Being able to walk away from a negoatiation is a great tactic. I have taught negtiating seminars for a number of years. (I also have a law degree court room training that comes in handy when thinking on my feet in negotiations.)

I have used this and other tactics many times. You must carefully select the approriate circumstances to use this or any other negotiating tactic. I have used it many time in buying things, especially cars. Salespeople are not prepared for a potetial buyer to walk away. I have done that after dropping my business card on thier desk when they are looking the other way and walking out, often which the salesperson running after me in the lot. They have invested a lot of time in you showing you productsand discussing them while other opportunites walked by. (I make sure they do invest alot of time in me.) They always call with a better deal. I often say "not good enough" and hang up. That really gets them. I highly recommend the book, "You Can Negotiate Anything", by Herb Cohen.

In Banksley's case, they have a lot invested in him as the station's image voice. There is also the relationship that has developed over time. Someone also mentioned something else that may go through their minds, if they let him get away, he may do work for the competition.


Greg
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