Payment Terms.
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- Mine_And_Yours
I have just lost a job due to my payment terms, I feel slightly silly loosing on out on work... but stuck to what I thought was fair, what do you guys think?
I was asking for 25 % upfront, 25 % after initial designs are approved and the rest when the work is completed. Does this seem fair to you.. I thought that it did seem fair.
They wanted 10 % upfront and the rest when completed.
What are your thoughts.. Cheers
- JSK0
How big was the job?
- ckentish0
sounds very fair to me - i try to get 50% upfront and 50% on completion but do also do that structure often.
- That is what I asked for first, and have got before.
Mine_And_Yours
- That is what I asked for first, and have got before.
- Mine_And_Yours0
It was for all the printed collateral for an accountancy firm...
- bulletfactory0
seems reasonable to me. i usually do 50% / 50% ...unless I know the company well (a company that hires me all the time usually get a bill upon completion, though sometimes they ask me to bill them for 'x amount' after concept approval)
- what ever works best for their billing cycle.bulletfactory
- baseline_shift0
Sucks...
Better this than not getting payment for services rendered, though.
- MSTRPLN0
Maybe their goal was to only pay 10%
- This is what I can only think.. perahps I am thinking too much and they are just tight.Mine_And_Yours
- boobs0
Yes, your deal was very fair. You should point out to these accountants that you are not in the business of financing their business, and that working on a large project for a mere 10% would mean that you would (unfairly) be carrying too many above-the-line costs, with no ability to make them up back-end.
Ask if they'd do the deal if you got a nice finance fee tacked on the end. Or if they'd like to walk down to your bank with you, and apply for a loan to scrape together the 25%. Tell them that until they are an established customer, you cannot give credit on mere reputation alone.
- Just remember that accountants are going to know every chisel in the cart to cheat you.boobs
- dibec0
You bait them this way ... tell them you can do 10% but the overall project costs will increase. You can also purpose 25%+25% and simply show them the bottom line.
- fyoucher10
I do 50% upfront, 50% net 30. I did 100% net 30 for years though. Yours sounds more than fair but the client might be hesitant to use you. 10% upfront and the rest upon completion? You mind as well just get it all at completion. Maybe do some things to give them more confidence in you. Or do what dibec says. However, depending on your skill set and your competitors skill sets you may have to settle for what the client says if you're hungry.
- The client approached me after seeing work I had completed for one of his buddiesMine_And_Yours
- The thing is, I am quite hungry. I just could not agree with the 10% upfront... As I said feel a little silly loosing out on the job.Mine_And_Yours
- Don't give in. Do they have someone else lined up? There's a chance they're just holding out but will come back to you.ismith
- rascuache0
Probably for the best mate, if they're awkward at the outset, it's a sure sign they'll be a pain in the arse for the rest of the job.
Speaking from my modest experience, at least...
- harlequino0
If you still have a window with them, maybe negotiate down to 20?
But otherwise, 25% is way fair.
- duckofrubber0
Stick to your guns, soldier!
- ItTango0
You gotta' be strong... sometimes it hurts. But if you think their asshole behavior was gonna' stop with the 10% thing, you're mistaken. That is the sign of a potential designer/client relationship that will become the bane of your existence.
- version30
if they ask to pay less you tell them that's okay, i'll just add another installment to your payment plan
- surfito0
they had no plans on paying you for your full work, probably you would have ended up being ripped off.
- surfito0
they had no plans on paying you for your full work, probably you would have ended up being ripped off.
- comicsans0
Actually payment upfront might be normal to you guys but it is distinctly abnormal in many other spheres of activity.
Point out them the terms their buddy paid and tell them you are not prepared to modify those terms for someone who is a new customer.
Of course, if we are not talking about a significant amount of money then they are just tightfisted.
- What do you consider significant? $50? $500? $5000?boobs