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Clients past a certain size just "forget" about the late payment penalties in my experience, which is why I offer a "on time" payment discount. I tried both me

Clients past a certain size just "forget" about the late payment penalties in my experience, which is why I offer a "on time" payment discount. I tried both methods and clients would rarely pay the premium compared to those who would avail of the "on time" payment discount. I have less happier clients when I make them pay a fee than when I take away a discount although mathematically they are the same number.

jjeaff 8y ago
That just gave me a flashback to my college accounting courses. So many examples where a discount was offered for on time payment. Must be a reason that technique has been around long enough to be a fixture in accounting textbooks.
tixocloud 8y ago
From big co perspective, absolutely true. Tons of other priorities to get out of the door than paying on time. Our invoice process was dreadful. Thinking back, if a vendor made it easy for us, we might always pay on-time!