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View Full Version : Why Service Based Businesses Need to Take a Deposit



vangogh
05-28-2009, 12:01 PM
Just a funny video that's sadly based on a lot of truth. If you run a service based business I'm sure you'll recognize the people in this video as people who have contacted you at some point.

The Vendor/Client Relationship (http://www.davidairey.com/the-vendor-client-relationship/)

You'll probably get a laugh out of this short video, no matter what kind of business you run.

Feel free to share your stories of clients similar to those in the video.

Dan Furman
05-28-2009, 02:48 PM
great stuff.

I love the "I'll come back next week" part.... I hear THAT one all the time: "Discount me today, because I'll have a lot MORE work in the future"

Yea, what a treat for me - dealing with Mr. Cheapy again and again... :)

Evan
05-28-2009, 04:18 PM
Wow... that video is TOO funny! Sadly, I am sure everyone can relate to it. At least there is a way to poke fun at the subject.

vangogh
05-28-2009, 05:23 PM
I knew you guys could relate.


Discount me today, because I'll have a lot MORE work in the future

Whenever I hear that it's almost always a sure sign I don't want work with that person.

"I would gladly pay you Tuesday for a hamburger today"

Evan
05-28-2009, 07:32 PM
"Why don't you just show me how you do it, so that way we can do it in-house." That is probably the classic!

Business Attorney
05-28-2009, 07:53 PM
I guess the plight of service providers is universal. It seems that whether you are a web designer, a writer, an accountant or an attorney, we all get the same lines from clients.

vangogh
05-28-2009, 09:59 PM
Evan that was a good line. Is it funny or sad (a little of both I guess) that we've all heard the exact same lines that were in the video?

True David. We all get those same clients. Maybe it's the same handful of people that has to go from business to business, since no one wants to take them on as clients

Dan Furman
05-28-2009, 10:22 PM
Oh wait... the "it's a test"... classic :) I get that one a lot too:

Client: "Ok, write the homepage for a huge discount, and if we like your writing, we'll hire you for the rest"

Me: "Errr... I guess my two websites (one 50+ pages), countless samples, and two books aren't sufficiently demonstrating my writing skill, huh?"

Patrysha
05-28-2009, 10:57 PM
Oh no Dan...you must prove that you can write for me...I am different from every other client you've ever had and I am just soooo unique and special...besides what you wrote before was in the past, how do I know you can still write like that today??

vangogh
05-28-2009, 11:14 PM
But Dan I have about 50 sites I'm going to need you to write and then another 50 after that. Think of all the potential business I could send your way.

rezzy
05-29-2009, 01:09 PM
Everyone wants to find the cheapest route possible. Get what they want to maximize themselves but minimize the vendor.

And they like to make situations that sound like in the long term will pay off and offer a payback. I wonder how often those offers actually pay off.

vangogh
05-29-2009, 01:33 PM
If someone asks me to reduce my price based on the promise of future work I take that to mean there will be no future work coming.

Maybe we all need to spin it with a counter offer. Next time someone tells you they'll have a lot of work in the future you can tell them, "Great, I can give you a discount on every 5th project you bring in."

Dan Furman
05-29-2009, 02:38 PM
Oh no Dan...you must prove that you can write for me...I am different from every other client you've ever had and I am just soooo unique and special...besides what you wrote before was in the past, how do I know you can still write like that today??


But Dan I have about 50 sites I'm going to need you to write and then another 50 after that. Think of all the potential business I could send your way.

I am assuming both of you will be providing me with the ever valuable "link", right? :)

vangogh
05-29-2009, 02:42 PM
Of course. And a link from our brand new site will help your Google rank page score %. Think of all the millions you'll make just for writing the copy for our site.

KristineS
05-29-2009, 03:30 PM
Oh, these are two funny.

My favorite is always "I want it just like this, but I don't want it to cost that much."

Then it's not going to be just like your example, is it?

huggytree
05-29-2009, 09:38 PM
Ive had several contractors try to use this BS on me too...its sooo easy to spot. usually they dont just do one of them its usually 3 or 4 different red flags....

im glad to say ive never fallen for it...the best one was a remodeler a year ago.

'i am extremely busy & I need a new plumber he retired. Here's the deal we had. You do plumbing for me for free and I pass all the plumbing only leads onto you. I gave my last plumber $100,000 worth of leads last year and all i want is a couple of free jobs a year......(guess what my answer was)....Ok, well what do you charge per hour? Well i cant do that, but i could do $70 per hour and charge a fee for the leads i send you? (my answer was to explain how a plumber cant be that low in be in business because its below cost)...oh....do you know anyone who would work for $70? (my answer= 'no i dont know anyone who wants to work below cost')

i found out he called every plumber in the area....anytime i talked with the competition we both would bring it up and joke about him.

The most common con. i get is 'i can get you lots of work..i just need a better price'..anytime someone is offering me future work w/o seeing what my work actually looks like its a huge red flag...i dont do business with them....i usually raise my price to end it....my normal new customers never discuss future projects until i finish the current one...they want to see the final product before discussing the next one....they are trying you out...

All i can say is that people must fall for this stuff because its sooo common..if it didnt work it would be rare....id say 5% + of the contractors use this....contractors overall are dishonest people....50% are bad on some level and 10% are outright crooks.

vangogh
05-30-2009, 01:36 AM
Sadly I think you're right that people do fall for this stuff. It's easy to see how when you're new to business and are trying to build a client list. You're more willing to do things for any job. It doesn't take long to realize the future work is never coming.