Tuesday, December 1, 2020

What did you really pay?

We have a client whose payment is always prompt. In fact, generally, they pay a little earlier than the payment due date. We like many things about this client and our working relationship with them. Being paid earlier than the due date tells us the client respects the relationship that we have. That our business is relational and not transactional.

It changed recently. When we asked the finance department why the change, we were told that the boss has been advised to delay payment. Rather than pay on time or earlier, delay all payments even when there is good cash flow in the company. Apparently, he was taught that paying later is better. 

What we pay with is money, but what we paid for may not just be services. What we paid for with our money and the actions behind that payment is a positive perception, good reputation, and trust. That cheque isn’t just money.

What’s the ROI?

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