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jasonp
09-04-2011, 01:07 PM
I run a videography business and have just encountered a troublesome client.

They picked up a brochure of mine promising a 25% discount, so when they initially called I made a note of the package they wanted, any additional extras, and deducted 25% from that amount. (My prices are not advertised as the packages are bespoke). They signed off on that amount. Since it was in the early days of my businesses, they received a GREAT deal - 1/3 of the price I am currently charging.

The package they chose was the most expensive.

They were problematic all the way through, and when the final product was delivered they wanted creative amendments. I worked an extra two weeks on this project for them because they found me two referrals, and I wanted to show my appreciation. I produced two new drafts, made the countless changes she requested (eg: changing songs she had pre-chosen!), and I did all of this and more for them, sometimes working through the night to get it done ASAP.

I even deducted a further 30 bucks off the final amount since they found me two referrals. The invoice detailed all the extra work and extra hours... with a grand total of FREE next to all of that extra work. But when I sent them the ludicrously cheap invoice the bride has came back at me with - "Oh, but what about the 25% discount. You haven't included that! Don't you remember the contract we signed!" But, erm... she's actually disputing the price contractually agreed.

Not sure how I should proceed. Since she is a low-ball client, if I refuse to take a FURTHER 25% off she may come back with a list of complaints and the old not-fit-for-purpose defence to get out of paying, but I do feel she is being very cheeky.

nealrm
09-04-2011, 04:11 PM
Tell her the 25% was already included in the original price. Next time you do an invoice, include the full price and show the discount being removed.

huggytree
09-04-2011, 06:54 PM
whenever i give discounts i put the actual NORMAL amount on the invoice and then put (-$ xxx) as a seperate item......it shows the customer EXACTLY what they saved...

word of advice: the cheapest customers expect the most....by chasing cheap customers your life will be full of headaches and you will lose money....i changed my advertising to appear expensive to get rid of the price shoppers.....your also building up a customer base of cheap people and cheap people have cheap friends......rich people have rich friends....i prefer working for the rich...ive had (2) horrible rich customers ever....99.9 percent are good...cheap customers all seem to be bad in one way or another...I sell Quality, not Price

25percent off is a crazy discount...who gives that much?

i tried coupons once for a month or 2....didnt do anything for me....now my attitude is no coupons...my customers want the best...not the cheapest

BeTheBest
09-05-2011, 01:46 AM
Ahhh... I can feel the pain. This is a customer that you have to FIRE! Yes... you can fire customers!

From the sounds of things (and I hate to say this) you might not get anything for this job anyway. That's just from experience. I would stick to your 'guns' and advise them that the final price they signed off on WAS the discounted price (in the future, I agree with the above where you show the FULL price and then any DISCOUNT; then the NET)

Also show them your current pricing if that will help. You really don't have much to stand on.

Oh yeah... by the way, uh, what happened to DEPOSIT UP FRONT??!?!?

Hope this helps! Good luck! ... and I really mean that.

Steve B
09-05-2011, 07:28 AM
Hopefully, you haven't given them the final product yet. If they don't pay - you keep the prodcut. Be prepared to go to small claims court if you need to. Given your current prices, it will be easy to convince a judge that the 25% was already applied (not to mention prices from your competitors should prove you already gave the discount).

It looks like you learned a lot of lessons for the future.

greenoak
09-05-2011, 08:11 AM
if you are in a small town i would go for just giving in and hope to be avoiding some bad buzz...i wouild hate doing that but sometimes its better to just get it behind you .
.and learn for later...its so unfair but you were kind of wide open for abuse...

seolman
09-05-2011, 05:45 PM
Tell her the 25% was already included in the original price. Next time you do an invoice, include the full price and show the discount being removed.

I agree with nealrm - just explain it was already discounted. Perhaps show them a copy of the original advertisement you ran (if it included any indication of price). If they bicker I would stand your ground. It's always a good idea to sit back after jobs like this and ask "How could I have avoided this miscommunication?". I suggest having a good "Standard Terms and Conditions of Sale" document that covers such eventualities.

vangogh
09-05-2011, 07:58 PM
I was thinking the same as Neal too. Just let them know you've already discounted the price. Also like huggy said you can send them a new invoice with the full price and then show the discount. In the future do that with other invoices. It shows you did add the discount and it also highlights the great deal you just gave the client.

Don't assume she'll automatically complain. Some people will try to get as much taken off the price as they can. It's possible that once she realizes the discount is there she'll be fine paying. Start with the assumption she will pay and then go from there. One step at a time.

LFinkle
10-05-2011, 01:34 PM
People tend to forget what they agreed to when it no longer serves them to remember. And what you experienced is typical...those clients that start out challenging tend to always be challenging. In this case I would provide her with a copy of the agreement or contract she signed. If you didn't show the discount on the contract you may be out of luck. Always, always show the full price and then any discounts you made or adjustments. If it's on the agreement highlight this for them. You hold the final cards if you haven't yet delivered the product and I would hold that out till you get paid.

BeSeenLocally
10-05-2011, 09:54 PM
I would show her your current prices for everything you did and then show the one she signed for. It sounds like when you are finished it will be more than 25% off for your services and then she then insert foot in mouth. If she still gives you a hard time, take it on the chin and meet her half way. At this stage you can do without the bad PR and learn from your mistakes (i.e. not breaking the invoice down). I would avoid bad publicity as much as possible...until you take the two clients she referred and show them you were not the problem. Do not stress yourself out (harder said then done) and move on.

mfine
10-05-2011, 10:44 PM
I've got to side with BeSeenLocally. It depends on her personality, though. I would inform her that the price already includes the 25% off, but if she seems to be getting angry over it, I'd give in to make her happy. In the future I'd make sure to give my customer a copy of a price sheet that has the breakdown of the prices and the 25% discount so that she can see what it would have cost before the discount was applied, to avoid any confusion like that in the future. It's been my experience that some of the pushiest customers are also the loudest complainers to others, so standing your ground could hurt you with bad PR, especially since she has already referred you to two other customers.

Matt Ohne hamen
03-05-2012, 12:56 PM
Jason,

That's why I STOPPED giving discounts for any work that I do. It's not worth it! I have also been using a website recently as a way to get money that people owe me. The website is called Nastyclient. As a contractor my whole life I really like this site, because customers have things like Angieslist and the B.B.B. Maybe it can help you also.

vangogh
03-05-2012, 11:52 PM
I think there are still times you can give a discount and have it work out fine. The key is clearly communicating the price before and after the discount to the client before work begins. There are certainly some clients who are problems, just as there are some service providers who are problems too. I think most on both sides are good honest people and most of the issues between them tend to be miscommunication more than anything else. If you can make things as clear as possible up front it usually ensures the issues don't arise. When they do I find a little compromise goes a long way.