My experience over the years is that offering an early payment discount doesn't necessarily produce the desired result, since many customers will take the early payment discount and not pay early. It is more of a challenge to try to recover an unearned discount than to apply a late payment penalty. Offering an early payment discount will typically result in an ongoing price reduction.
Rachel Foerster 847-872-8070 -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Mike Rawlins Sent: Monday, August 08, 2011 9:32 PM To: [email protected] Subject: Re: [EDI-L] [BizDocuments] - Late Payment Penalty The other option is to offer an early payment discount, assuming that you can tolerate it with the rate you've established with them. In either case, there's a challenge what to do when they don't actually pay early and claim the discount, or they pay late and don't include the penalty. I suppose you can always bill them the next month. ----------------------------------------- Michael C. Rawlins, Senior Software Engineer, GXS Sent from personal account On 8/8/2011 1:24 PM, Rich Silva wrote: > > I have a client that needs to be prodded to send me payments Oh, they > do pay they dont argue, but I always have to remind them at Net 30 > plus one > > My contract with them is about to be re-upped and I wanted to > include some late payment penalty verbiage into the contract > > Anyone want to toss out a sample of what they are using? Im not > looking for anything crazy, just enough of a reminder in their face > that they do know there are consequences to paying late > > Rich > > Description: Wizard Clip Art SigRichard Silva > > Silva Software Services United States > > Phone: (310) 387-8364 > > Email: <mailto:[email protected] <mailto:RichSilv%40Pacbell.net>> > [email protected] <mailto:RichSilv%40Pacbell.net> > > ü Please consider the environment before printing this email. > > [Non-text portions of this message have been removed] > > ------------------------------------ ... Please use the following Message Identifiers as your subject prefix: <SALES>, <JOBS>, <LIST>, <TECH>, <MISC>, <EVENT>, <OFF-TOPIC> Job postings are welcome, but for job postings or requests for work: <JOBS> IS REQUIRED in the subject line as a prefix.Yahoo! Groups Links ------------------------------------ ... Please use the following Message Identifiers as your subject prefix: <SALES>, <JOBS>, <LIST>, <TECH>, <MISC>, <EVENT>, <OFF-TOPIC> Job postings are welcome, but for job postings or requests for work: <JOBS> IS REQUIRED in the subject line as a prefix.Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/EDI-L/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/EDI-L/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
