Networking Now

All,

Looking for some input on a potential new fee structure I am thinking about introducing next year. I'm trying to give more options and encourage some longer term thinking from clients.

Credit Control Outsourcing;

Current structure;
Credit Control Outsourcing provided on a set monthly fee. The fee depends on the number of customers outsourced. Contract is payable on a monthly basis. Contracts are monthly and can be cancelled at a months’ notice.

New Structure; (customer has 2 options, extra option for new companies)
Option 1, as above
Option 2, a year’s fee paid in advance with a 10% discount on the price. Even if the number of accounts increases due to increased business the fee stays as is for the remainder of the contract.
Option 3, available for companies in their first year of trading (after verification) - Yearly fee (to be determined) paid in advance - pay for 9 months receive 12 months service. On a revolving contract, fixed price for the second year.

Debt Collections

Current structure;
No win no fee debt collections with commission on actual collections starting at 10% (% depends on age of debt and country of debt).

New Structure; (customer has 3 options)
Option 1, as above
Option 2, Set fee debt collection. i.e. if 10% commission would be £200, set fee regardless of outcome of say £100.
Option 3, Yearly retainer fee for debt collection (say £100) which entitles customer to a reduced commission price on ANY debt handed over for the length of the contract. From say 10% to 7%

Without a lot of time to digest and really analyse, the principle of offering a complex group (small business) a variety of ways to purchase is smart thinking. One size doesn't suit all on service contracts.

It seems fair, upfront and without catches. The biggest thing I can say is make it transparent if you're aiming the service at the smaller end - what I call OMB, SOHO, Trademen, Start-ups, etc.

Hope this helps.

Cheers for the response Doug.

The aim is to offer a fee schedule that has some variety in it, that gives the customer a way to feel in control of the transaction and reward for a longer term relationship. I'm going to re-jigging the website in the new year and want a new fee schedule to be clear and easy to understand.

Not something I know a lot about, but I agree with Doug, One Size Does Not Fit All.

So with that in mind, putting options in is a great idea, and a link on the site that is clear from te off is a great idea, I always look for a 'prices' tab on any site I look on, Twitter does not have a 'prices' tab though :)

Keep us updated on how it is going Sean

Cheers Kip. Will have a play around over Christmas and post back for a review ;)

More agreement here.

Those are good flexible options and in principle quite attractive. Maybe you could offer a tied-together plan of some sort where those who sign up for a year at a time get a bit of a (perceived) discount on collections, too?

Will have a proper read and give more feedback when you update! :)

Matt, thanks for the note.

This is why I love posting here, always get responses that make you think. Will be bouncing all the ideas and feedback off friends and family over Christmas :)