ASK FOR THE MONEY
They had been at my desk for two hours. New travel clients planning an extensive European driving trip. Much more work for an agent than just booking a tour.
They were pretty unsophisticated travelers. The conversation, for example, included things like -
No, you can’t drive between
“But it looks so close on the map.”
That’s because you have a small map.
Finally, the plan was done. They were smiling. They were thrilled. It was PERFECT! I said, “Great! I need an initial deposit for $1000. to start booking these arrangements.”
Silence.
(Everyone in sales knows that the first one to speak after that loses)
After what seemed like an hour, they wrote me a check. As they were leaving, the woman stopped and asked, “What shall we tell all the other travel agents we talked to?” Turned out they had taken the time of four other agents and no one had asked for money!
Just tell them you gave me a deposit, I suggested. Why don’t small business people ask for money? If you call Maytag to fix your washer, or GE, to take a look at your ailing refrigerator, they will tell you right way that it costs maybe $150. just to walk into your house. No guarantees they will be able to fix anything. These are billion dollar companies. They ask for money right up front.
I have a lot of life coach clients who do not ask for the money that is due them.
Some of them have confessed to me that they feel like they are begging. Begging for payment for services already rendered.
Others say that they are afraid they will lose the account if they press for payment. Tell me, do you need an account which does not pay you? I have a couple of standard statements.
You are not a bank. If they want credit, get a credit card. There is always a service like PayPal.
If you are in business there is a simple rule. You must get paid. Best if you get paid upfront. If you ask, people will do it. They may cry poor mouth, but they all have “hidden” money. It’s just that it goes to those who ask. I developed an almost foolproof way to collect past due accounts. I would call, very pleasantly, and say, ”I know how busy you have been but I will be in your area this afternoon at 3 PM to pick up my check for $____.” Then arrive in the office with two people. Yes, two. No business wants anyone in their front office, especially two of them, who are asking for money. It does not look good for the others who are in the waiting room.
I got the check every time. Try it.
I know how hard it is to ask for money. Just do it. It only hurts for a minute.
And if you find you are not getting paid, move on.
There are others who will pay you. Train them from the beginning. Outline your payment policy before you start.
Pretend you are Maytag – or GE. They always get paid.
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http://makingsalesm
An inoffensive phrase that can be used initially, invented by a musician I know, is: What kind of budget are you working with?
This is polite but puts money on the agenda straight away.
Dear Evan -
Very useful. At least you are putting on the table you expect to be paid.
When they tell you, double it. It is only a feeler to see what you might charge. It is a beginning bargaining point.
Let the selling begin at this point where you convince your client what you can do for them.
Selling benfits to your prospective client is the whole deal. Not how good you are. But how good you can be for them.
I found your article to be both realisitc and insightful for most business situations. When a professional has an opportuinty to secure new business one of the most important issues to convey and further secure is the matter of finances.
Regardles of the type of business, budget is always in the mind of both the client and the individual selling the service, goods, etc.
The client comes to the professinal with purchasing in mind for a specific or best price for those services, good, etc.; the seller wants to parlay their services or inventory at the bet price possible…..once the credentials of the sellar are provided, they then must explain how they operate the financial end of their business. I never have to ask for monies as my initial interview qualifies how the financial end works, further substanciateed by a business contract qualifiying what was discussed at the meeting and then individual contacts for all goods and service sold.
If the client wants the project to move then all they have to do is pay the amounts requested….also please know that this individual always secures an advance retained against future time expended in order for the contact sale to be generated…in other words by the client agreeing to the project contract, and paying a time retainer to start the process, they have already agreed to pay the necesary monies in order to secure their purchases.
All it is, is being secure in what you are selling and how you sell it and letting the clients know their obligation to the proiject which is paying the bill timely. One should never be intimidated when it comes to money especially when selling service and goods to potenmtial clients.
Dear S. Saltzman -
WOW! Yoou have said it all. Make everything clear from the beginning and set up the time frame for payment.
Thanks also for reminding us that we should get money up front.
Appreciate the time you took to prepare such a detailed and intelligent commentary!
I am sure it helped many people out there who hesitate about the necessity of GETTING PAID for our work.
Corinne:
Excellent post - it’s a subject that’s on the mind of every small business owner. It’s an area of potential discomfort but I’ve learned that when you state your expectations upfront, the client will, in my experience, comply.
Up to this point, I’ve asked for 50% down with the balance paid at the speaking engagement. But twice in the past 12 months, I asked and got full payment BEFORE the engagement. It was like, “Wow.” But I should explain why I was able to do it. Both engagements were secured at the very last minute, with me booked to speak the following week. I saw no sense in having them Fed Ex me half with the balance given to me in a few short days. So I asked for the full amount and they Fed Ex’d the check!
Some professional speakers are able to get the entire amount upfront consistently but I think it’s because they are nationally known. I’m not yet at that level but I won’t hestitate to ask for full payment if I am booked at the very last minute. There’s nothing like seeing a check for the full amount arriving in your mailbox!
Great article. Everyone can use this advice.
p.s.
Corinne, I forgot to ask - I thought you were no longer in the travel service business? If I remember correctly, you sold your agency long ago.
Things are different these days. You no longer have to have a bricks and mortar agency to sell travel if you have long experience. If you know what you are doing, there are operators and hotels and ships who will let you book and will pay you. Especially if they know you from the past.
I don’t do a lot of travel business. Mostly high level. Not tickets from Chicago to Akron. There are still discriminating people who travel who want to deal with someone who has been there and who know where to stay and what to do. These are not the Internet booking people. They want to talk to a person.
Part of my multiple streams of income theory.
Corinne:
Remind me to call you next time I do some serious traveling!
An interesting story! I know what do to next time
Thanks for your comment, Sham. Stick around with us. We are only getting started!
Stephen - Just let me know when you are traveling. I would be happy to give you any input I have!
(does a serious blogger ever travel?)
Yes, serious bloggers do, indeed, travel. They go to blogging type conferences, etc.