How on Earth Do You Get a Client to Pay?
Four panelists offered their perspectives:
• The Attorney: Alex K. Ross, Esq., of Ross & Katz
• The Accountant: Tricia M. Taitt, principal of The Art of Money Matters, Your Outsourced CFO
• The Client Relationship Expert: Richard R. Shapiro, founder of The Center For Client Retention
The group was skillfully moderated by IFDA NY Chapter member J. Randall of Pavarini Design.
The key takeaways
1. Good personal relationships with clients matter. Make sure to over-deliver with great customer service and thorough forecasting of job costs and budgets.
2. Request a retainer upfront and consider an upfront design fee to cover the drawings and planning documents/spreadsheets, etc. This requires some prior historical data for reference and is advisable for experienced professionals.
3. Only agree to a flat fee if there are strict limits and inclusions set forth in your letter of agreement.
4. Make sure your payment schedule doesn’t leave a large amount due at the end of the project when clients may want to avoid paying.
5. To keep positive cash flow, don’t invest your own money on behalf of a client. Be sure there is always money in the retainer to cover your work in process.
6. Charge a markup on product in addition to monthly billing for construction supervision and reimbursable expenses and make sure product is paid in full PRIOR to delivery.
7. Know your worth and charge it in your hourly fee and be clear how that applies and is billed during the course of a project to cover time and expertise.
8. If it becomes tricky with the client toward the end of a project, MAKE SURE to do EVERYTHING you have committed to do and checked off every punch list item and that was everything installed works as designed before pressing for payment.
9. Include a stipulation in your contract that suspends deliveries if payments are not made on schedule.
10. Small Claims Court is the best way to recover unpaid balances under $10,000 for unreasonable clients.
Attendees left the event with plenty of good advice. We hope you think so too.
Photo Caption: From left to right, Alex K Katz, Esq., of Ross & Katz;
Tricia M. Taitt of The Art of Money Matters, Your Outsourced CFO; Richard R. Shapiro of The Center For Client Retention; and J. Randall of Pavarini Design.
Related News
Thursday, April 18, 2024
LEWISVILLE, N.C., Sept. 6, 2023 — The Educational Foundation (EF) of IFDA, the International Furnishings and Design Association, is pleased to announce its grant winners for 2023. Since the early years of this 76-year-old global design industry alliance, EF has awarded grants to...read more
NEW YORK, May 11, 2023 – The International Furnishings and Design Association, the 76-year-old global design industry alliance that is arguably the most diverse organization of its kind with membership that includes...read more
LEWISVILLE, N.C., Feb. 13, 2023 —The Educational Foundation of the International Furnishings and Design Association (IFDA EF) has announced its 2023 Board of Trustees, selected to oversee and administer more than $30,000 in...read more
LEWISVILLE, N.C., Oct. 7, 2021 —The Educational Foundation (EF) of IFDA, the International Furnishings and Design Association, has announced the winners of four of its professional grants. Since the early years of this...read more
NEW BERN, N.C., Aug. 3, 2021 — The Educational Foundation (EF) of IFDA, the International Furnishings and Design Association, is pleased to announce its design student scholarship winners for...read more
NEW BERN, N.C., May 10, 2021 — Applications will be accepted between June 1 and June 30, 2021, for five professional grants from the Educational Foundation (EF) of IFDA, the International Furnishings and Design Association. Since 1968, this 74-year-old global design industry alliance has awarded grants to...read more
Web Design
Thursday, April 18, 2024