Profit From Your Event Define Your Payment Rules

Profit From Your Event Define Your Payment Rules

Profit From Your Event - Define Your Payment Rules
Frank Richards is​ a​ Business Management Consultant who specializes in​ Service Level Agreements .​
Last month he ran four seminars in​ major Australian cities but he's finding that the ticket money does not cover his costs.
In these days of​ instant payment you would believe that the problem of​ unpaid registration fees is​ a​ negligible issue .​
Unfortunately the days of​ instant payment do not coincide with the days of​ red-tape-free purchase ledger accounting .​
Companies have their own internal rules about raising requisitions for payment and some may take in​ excess of​ 90 days to​ clear all of​ the hurdles .​
Although this is​ probably one of​ the best reasons for delivering invitations to​ corporate delegates more than three months prior to​ the event, it​ still leaves you with the conundrum of​ what to​ do about non-paying delegates.
The answer, as​ with all financial issues, is​ to​ have a​ clear set of​ contracted rules that are sent out with the invoice paperwork, the confirmation of​ registration, the joining instructions and any other communication that you may exchange with your delegates .​
There is​ nothing complicated about the wording; all you must state is​ If payment is​ not received 21 days prior to​ the event then a​ place will not be reserved for the delegate .​
Choose your time period to​ be realistic otherwise you may alienate potential attendees who know that their accounts department cannot meet the criteria.
Nominate one of​ your admin team as​ a​ Credit Analyst to​ keep an​ eye on late payments and make it​ their job to​ make increasingly frequent calls to​ the delegate to​ enquire how payment is​ proceeding .​
This pressure alone will normally accelerate payment as​ the delegate won't want to​ lose their place at​ the event and they'll use your payment terms to​ coax the money from the accountants.
What to​ do about late payment
In extreme cases delegates will plead their powerlessness against the moneymen and they will find themselves up against the wire with nowhere to​ turn .​
It's your opportunity to​ be magnanimous and allow the delegate to​ attend the event so long as​ they bring a​ check or​ even cash with them to​ hand over at​ the door.
Keep it​ in​ mind that bad debt in​ Australia can be measured in​ trillions of​ dollars each year and the major reason given is​ poor debt management, meaning that people are often not tenacious enough to​ chase down delinquent purchasers.
So, be tough and resolute; an​ event is​ an​ instant product, consumed as​ it​ is​ manufactured .​
If you get your payment late, how can you possibly pay all of​ the players who are providing goods and services to​ make the event a​ success? You can't ask for the product to​ be returned.
Be polite and understanding; offer the delegate a​ place on a​ later event or​ some one-on-one consultancy as​ an​ alternative .​
Be as​ flexible as​ you can but don't disrespect the prompt payers by relaxing your standards for an​ organization that can't get its act together.

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