(This advice applies to you as well as to your customers.)
Get the word FREE out of your daily business talk. Relegate it to a locked place in your modus operandi that requires at least 10 seconds to unlock while you consider the short-term and long-term consequences.
You do not provide services for free. You provide some services at no charge or choose to not charge for some work. And when you bill the client, NEVER, NEVER forget to include these items on the invoice and have it say “No Charge,” NOT “$0.00.”
When you put “$0.00″ on an invoice, it means the service has NO VALUE. What does that say about your expertise and your investment in time and money to gain that expertise? How will a client value what you do for them when you don’t?
In contrast, when you say “No Charge,” you are telling a client that the service has value but that you CHOOSE NOT TO CHARGE them for it. In other words, you did the client a “favor.” It also puts the client on notice that if they ask for too many “favors”, they can expect to be charged.
When your invoice invoice one or more No Charge items, ALWAYS include a note that explains WHY. For example, tell them you were able to absorb the change to the project this time because other parts of the project went a little better than expected. Or say the No Charge is a goodwill gesture. Or if they have referred business to you, that it is your way to say thank you.
In the same vein, if you charge less than your full bill rate or your cost, include that fact on the invoice – add a note to clearly say this. You might decide to charge less than your full rate because you want to shift part of the value of the work into goodwill for the client. Or you might decide to eat part of the cost because the task took longer than planned, and billing the full amount might raise eyebrows or make a client wonder about your competence.
Whatever the reason, document it on the invoice. Make sure they know what the discount is for (IMPORTANT: Review Page 19 of the BillQuick Reseller Handbook). Refer to it as a Goodwill Discount. If appropriate, explain that what you learned in helping them will allow you to help others. This implies you are a smart businessperson and will get your investment back many times over.
Bottom Line: “Free” has no value unless you tell the client it has value. You deliver value, thus your business talk should include No Charge and Goodwill Discount. And your invoices should always have an explanation for both of these to ensure the client knows the value you provide. They will NOT “get it” unless you include an explanation.
