TCAM

To get paid, as you would figure is fundamentally important at your business because if you aren’t getting paid, what’s the point in business?

You will be astounded at the heaps of business people who allow their customer base to make payment when and if they get on with it. I am acquainted with one businessman who always makes bad debts like trophies. How? Most likely because he can’t bring himself to request the payment and people can just intimidate him.

If you let somebody credit, only do so because they proved their worth to you by paying cash on delivery (COD) for a time. Furthermore, you can gauge whether they have the funds to pay you - if not then you shouldn’t do business with them. Don’t kid yourself into the line of “I need the work” or “I need the sales”. It’s pointless to do the work or providing the goods for zip if you are not getting paid.

If you are the type of person who can’t request the money after the service has been finished, try these cheats:
Tell your client that when the work is finished up, you will need cash or cheque. They will likely have it on them at the transacation and you don’t need to demand your pay.

When you hand out your quote, make sure your payment terms are simple.

Do up an invoice that has the terms of payment evidently printed and send the client the invoice when the work is finished. They can look at the invoice and simply know they should pay you now without you having to say a thing. Fabricate a “vicious boss” who might torture you alive if you do not go back with the payment for the work.

Organise your branch to hook you up with Merchant facilities so you can use credit cards including Mastercard and Visa. Most people use credit cards and it would solve the issue of the client not having a cheque book or not having enough cash on hand.

Alternatively, don’t be afraid to hand over the goods till after you’ve been paid. Remember, until the goods are paid for, the goods remain to be yours.

If you decide to let someone credit, make sure you take the following contact information about them at a point BEFORE you let them credit.

• Name
• Address
• Phone number
• Bank name and address
• Account no.
• 3 trade references with their names, addresses and phone numbers

When you possess all this information, contact the banking institution and make for sure that they operate an account there. Then, ring each of the trade reference and inquire if they pay their bills on time or if there have been any difficulties with them.

Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.

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As a customer service concept, relationship marketing is not new. For decades, business-to-business marketers have employed account managers who have the responsibility to dedicate themselves to key clients. In the financial world, `relationship banking’, whereby high-yield customers are assigned a personal manager, has been practised for many years.

When direct marketing is embraced to establish connections or relations between the marketer and the consumer, it is too easy to suggest that all forms of direct marketing communications achieve a closer relationship, a closer bond between the two parties. Such a conclusion exaggerates what generally happens in the marketplace.

Direct marketing is all about generating a direct response from the consumer and about direct communications to the consumer. A direct response is needed to generate better understanding of the advertising message or to motivate transactions. Direct communication is simply about media reach efficiency. Relationship marketing is a concept that transcends these pragmatic direct marketing objectives.

Kotler appropriately positions the concept of relationship marketing as one which applies principally to business-to-business situations:

Smart marketers try to build up long-term, trusting, `win—win’ relationships with customers, distributors, dealers and suppliers. That is accomplished by promising and delivering high quality, good service, and fair prices to the other party over time.

It is accomplished by strengthening the economic, technical, and social ties between members of the two organizations. The two parties grow more trusting, more knowledgeable, and more interested in helping each other. Relationship marketing cuts down on transaction costs and time; in the best cases, transactions move from being negotiated each time to being routinized.

Outside of `membership’ or `continuity’ programs, there are two basic ways to approach consumers. The first is with a product and price combination considered to be `the standard’. That is, the proposition is essentially of long standing and relies on the features and benefits being competitive. The second way, normally of short-term duration, is a `special offer’. Direct marketing textbooks are full of the theory, practice and case histories relating to `the offer’.

The choice of basic propositions or selection of special offers depends on the circumstances of the individual firm and its competitive environment. The right proposition or offer can make a world of difference to response cost-effectiveness.

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