Entrepreneurship & Small Business

Poll: Credit or not-to-Credit / Why-Why not?

  • Last Updated:
  • Sep 25th, 2016 8:45 pm
Tags:
[OP]
Newbie
Sep 30, 2009
41 posts
Calgary

Poll: Credit or not-to-Credit / Why-Why not?

Case:

Billed a client for 7 mos, $1,800K/mo., for services. On the 8th month, you noticed an over billing error in the amount of $1,500. Biller has no problem admitting the error.

Clients accounts payable overlooked it and paid you on time.

If you are the business owner...what is the best thing to do?

A. Issue a Credit note? Why? Why not?

B. Not to credit? Keep it the same-monthly? Why? Why not?
6 replies
Deal Fanatic
User avatar
Nov 18, 2002
7039 posts
642 upvotes
BC Interior
Call client, apologize and ask them what they would prefer. I'd imagine credit would be their choice.
Deal Addict
Jan 28, 2014
3761 posts
880 upvotes
Toronto
If this is a real case, admit the overbilling to the client and ask whether the client would prefer a credit or a refund.

My interpretation of your post may be incorrect, but my understanding of your post is that the second option basically indicates that you would not tell the client of the overbilling.

Eventually the client will find out and that will be the end of the relationship.
Sr. Member
May 29, 2012
579 posts
221 upvotes
Southern Ontario
Blanche123 wrote: If this is a real case, admit the overbilling to the client and ask whether the client would prefer a credit or a refund.

My interpretation of your post may be incorrect, but my understanding of your post is that the second option basically indicates that you would not tell the client of the overbilling.

Eventually the client will find out and that will be the end of the relationship.
EXACTLY, is the loss of total future revenue from that client worth it?
I know if one of my suppliers did that I would actually feel pretty happy about their honesty and would trust them more in future projects
Member
User avatar
Mar 28, 2012
345 posts
88 upvotes
My Kijiji sofa
ichpen wrote: Call client, apologize and ask them what they would prefer. I'd imagine credit would be their choice.
Ditto - call and offer immediate refund or credit towards/deducted from next invoice(s)
I am open! Let's get on with the hacking - I assume it vibrates?
Ref: Dazz
Deal Addict
Feb 29, 2012
2654 posts
1459 upvotes
Richmond
Yes, definitely notify them immediately and offer them a credit or refund. In a few cases we have managed to turn it to our advantage by offering the client a deal on the credit amount. Since the amount has already been approved, and it's sometimes more trouble than it's worth for them to process a refund, they might be persuaded to spend the credit on buying more from you, especially if you sweeten the deal by offering extra. But you must be prepared to refund if requested.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)