Re: working with IT Services firms

Inflate the rate to cover the risk. If offering a 10% discount, increase the rate by 15%, then it doesn't matter if they still take the discount. I worked with some companies that would not take invoices/contracts that had penalties for late payments. So, I inflated the rates and offered the discount for payment within 10 days of invoice date.

Booth, nice to see you are still active. Go get them......

rpgman
-------------- Original message from Booth Martin <booth@xxxxxxxxxxxx>: --------------

I experimented with cash discounts for a decade or so in a business to
business environment. It didn't seem to appreciably effect the the time
to settlement. It just wasn't worth the clerical hassles.

rob@xxxxxxxxx wrote:

We had an AP clerk at one company warn us not to offer them discounts for
paying early. Her company always took the discounts regardless of when
they paid.

Rob Berendt

--
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Booth Martin
http://www.Martinvt.com
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