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  • Rule One of Business: Get Paid

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    Posted on May 25th, 2010Mandy HobsonUncategorized

    Getting paid, you would figure is fundamentally fundamental in your business because if you are not being paid, what are you doing in business?

    You will be laughing at the loads of business people who permit their clients to pay them when and if they remember it. I know of such a tradesman who continuously collects bad debts like charms. Why? Simply because he cannot bring himself to demand the payment and people just use him.

    If you allow somebody credit, do it only if they proved consistency to you by paying cash on delivery (COD) for a period. Moreover, you should gauge whether they have the funds to pay you - otherwise why do business with them. Don’t push yourself into the line of “I need the work” or “I need the sales”. It’s pointless doing the service or providing the goods for nada if you are not getting paid.

    If you are the kind of person who can’t demand the money even when the work has been done, try these cheats:
    Tell your customer that when the job is completed, you require cash or cheque. They should be likely to have it ready at completion and you do not have to demand your fee.

    When you hand out the initial quote, be sure your payment terms are evident.

    Create an invoice including the terms of payment clearly printed and send the client the invoice when the job is finished up. They should take the invoice and generally understand they will pay it off now without you going to say a thing. Make up a “cruel boss” who will burn you alive if you can’t return with the cash for the job.

    Set up your bank branch to have you running with Merchant facilities so you can accept credit cards like Mastercard and Visa. The majority of people own credit cards and it could stop the dilemma of the customer not owning a cheque account or not having the right amount of cash in their wallet.

    Moreover, don’t be afraid to hold onto the promised goods til after they have been paid for. Don’t forget, until they’re paid for, the goods remain yours.

    If you decide to allow somebody credit, make sure you get the following details of them a week BEFORE you give 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 branch and make certain that they operate an account with them. Then, call every trade reference and ask if they pay their debts correctly or if there are any problems 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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  • Relationship Marketing Fundamentals

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    Posted on January 2nd, 2010Mandy HobsonUncategorized

    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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