problems with clients paying

[heathmont]

ok, we just finished a job for a client. last year we set up an oscommerce site for him. he came to us last month with a number of fixups. i suggested a new design and for him to use our custom built cms (which he agrees is ten times better). anyway, as he hasn't made made any sales through the new or old site, or got many contacts, he is now concerned over the price of our devleopment - even though we have given 75% of our normal per hr rate.

he has basically said that the invoice is very high, as he paid half as much for the oscommerce site last year. the new site has been up for 1 month now and they haven't had one phone call or e-mail from the new site and only two phones from the old one. they have been getting plenty of hits but no business. further he has made the prices very attractive on the site as a way of testing demand.

we have done the work - and i have programmers to pay. it sounds like he needs help with his marketing side of his business to? anyway any feedback or comments would be greatly appreciated as i have to get back to him soon.

thanks in advance
tim.

[Shane]

It sounds like you are trying to help this guy. The bottom line to me is he agreed to buy x, you delivered x, therefore he owes you some $s. Why look for more justification.

Did you guarentee any results?

I would not spend any free time on helping this guy. It's not that I would not help him, but not for free.

Some questions:

Did he pay his last bill on time?

Is his brick and mortar store profitable?

What can you sell him to make him profitable on the net (or refer him to someone after he pays)?

Did he pay a deposit?

Can you "cut-off" his website should he not pay?

How much harm can he do your business if the relationship turns sour (affecting other clients/prospects)?

..... Shane

[johntabita]

I agree with Shane. It sounds as if he trying to either directly or indirectly assign you the blame for his lack of sales. I find it funny that he became "concerned" about the price after the fact. Why didn't he express concern before the project began, when you first gave him the cost? Personally, I think he's looking for a convenient way to get out of paying for something that didn't work out the way he wanted.

Suppose he took out a Yellow Page Ad that didn't get the response he expected? What do you think the phone company would say, if he told them that their price was "too high" and that he wasn't going to pay the full amount, because he didn't get any calls?

Look at it from another perspective. By paying you less than the full amount because he didn't make any money, he's asking you to share in his loss. If that's the case, is he willing to give you a share of the profit, if things turn around? Ask him that question and see what he says.

[sanity]

Look at it from another perspective. By paying you less than the full amount because he didn't make any money, he's asking you to share in his loss. If that's the case, is he willing to give you a share of the profit, if things turn around? Ask him that question and see what he says.

Excellent point.

[stealthmag]

There are a lot of issues here:
- market for product
- quality of product
- marketing of product
- marketing of website
- usability of website
- content on website
- e-CRM related activities

Sticky me the URL if you like and I'll give you some feedback.