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36
ACCOUNTING

Getting Bills Paid Early

Dealing with customers who take early-payment discounts when they don't apply.
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SEPTEMBER 1988

Having trouble with customers who take their early-payment discount even when they don't pay early? Carl Hansen, president and CEO of Viking Engineering Inc., a Tarpon Springs, Fla., manufacturer, has a solution.

Instead of detailing the discount on an invoice, making it tempting to take the discount regardless of when paid, Hansen prints his early-payment price offer only on an eye-catching green coupon included with each bill. The separate coupon prevents payables clerks from honestly confusing the discounted price with the regular, net-30 billing. It also, says Hansen, "psycholog-ically grabs the customer and bumps us up on the list of people to be paid.'

Apparently, it works: Viking's average bill is paid in a respectable 35 days -- down from 55.

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Last updated: Sep 1, 1988




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