Getting to the Root of Client Deductions
Ever have a client make a deduction from an invoice? You know the type, they always find fault with your work, can’t believe that you charge those kinds of rates, and they wonder why you’re not able to drop everything and handle their projects immediately without adding “rush charges” to the invoice.
As I’ve gotten more experienced as an entrepreneur, I’ve found that there are several types of clients that use these tactics.
The first type is totally unethical, and no matter what you say or do, it’s always better for you to cut your losses and discontinue doing business with them. I know this can be difficult, but it could hurt your credibility.
The second type is the client who is always looking for something for nothing. They will take your project quotation and rip it apart looking for hidden discounts.
Sometimes they are just thorough, sometimes they are doing what has proven to be successful in the past. These clients can be turned into good, ethical clients by simply taking the time to find out why they work this way.
They may have worked with unethical providers in the past, and have found that by questioning an invoice, or price, they usually will get some sort of discount, or free offer.
Open the discussion by asking about their complaints and how you can rectify the situation. Be a good listener. Let them vent their frustrations. Ask them for an explanation of any deductions, and try to put yourself in their shoes to see if you can get a better idea of their motivations and concerns.
Maybe your invoices could detail more information about your charges and how you met their needs. Let them know that you want to be more familiar with their specific needs so that you can provide better services in the future.
Most importantly don’t take it personally. Sometimes we are not the perfect fit for someone’s needs. What we need to do is maintain our integrity and remember that we can’t be all things to all people.
Do those tasks where you consider yourself to be the expert. Encourage new clients to contact your references so they have a clear picture of who you are, what your strengths are, and how those strengths can help them achieve their goals.
Jeannine Clontz, IVAA CVA, MVA, EthicsChecked™, owner of Accurate Business Services is a Virtual Assistant (VA). ABS provides ‘as needed’ marketing support and consulting to busy entrepreneurs. Clontz is a writer, author, VA Coach, and speaker on business topics including business ethics. For her free 10-Step Guide to Finding the Right VA, or her FREE Report, Social Media Marketing Benefits, send a request to: service@accbizsvcs.com. For more information visit: http://www.accbizsvcs.com, www.VAbizcoach.com or her book website http://www.entrepreneurialfreedom.com
Last time we discussed the top five mistakes to avoid when marketing your business, here are the final five!
Without marketing your business could stagnate, or even worse, close. Identifying and correcting some basic marketing mistakes will help you to promote and grow your business.
Many of you broke into a sweat after reading the title, didn’t you? Many don’t have a plan because they believe it’s too hard, too time consuming, or they just don’t know where to start.
Jeannine, you could always do what I do. Put your clients on a retainer that pays you in advance for your work and keeps you from having to deal with invoicing issues such as these. Take care and God bless.
Thanks, Gazelle -
I actually used to work strictly on retainer many years ago. I just found it to be an accounting nightmare since I didn’t want to get paid for hours I didn’t use for the client. As my business has evolved over the years, it has just worked better for me to either invoice at the end of the project, or the end of the month.
I have really great clients, and am very picky about who I work with, so luckily, I don’t have to deal with this a lot. For me, it’s mostly about getting to the bottom of the client’s problem or objection. Communication is so key to my relationship with my clients, and many times the isses are easily resolved just by finding out where they’re coming from.
Thanks so much for your comments. Wishing you all the best.
Jeannine