It’s December 2nd, year end is a mere 29 days away. Would offering a discount to customers who have failed to pay accelerate payment before year end? Your New York City debt collection attorney agrees that the answer is probably yes. For customers who intend to pay, offering an incentive, a discount, is a way to get paid a bit quicker.
Before doing so, just hold on a minute. Let’s look at the big picture. We all know, from personal experience, that once we are offered a deal, a discount, a freebie, we learn to expect it again and again. After all, if our vendor is extending an offering to us, why wouldn’t they extend that same offering again and again?
A vendor who extends a discount as a one time deal may in fact be doing themselves a disservice. More monies will be paid before year end but what about cash flow in 2015? Can you afford to extend the same discount to the customer you bill monthly in 2015 which could amount to a huge discount? Are you considering the customers who will forestall payment until year end 2015 hoping for the same courtesy discount? What is the cost of carrying that customer over the year?
Before offering a one time discount, consider the impact on future sales and relationship with your valued customer. For further information please contact this New York City debt collection attorney at (212) 686-0100 or email Jocelyn directly at JNager@ffgnesqs.com.