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Billing misunderstanding - what would you do?

 
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Tom Test
DC


Joined: 23 Jan 2007
Posts: 629
Location: Chicago, IL

PostPosted: Sun Jul 26, 2009 10:04 am    Post subject: Billing misunderstanding - what would you do? Reply with quote

Hello,

I'm looking for some advice/feedback about a misunderstanding I'm having with a client about my invoice for a podcasting session we just did. Here, verbatim, is my bid quote to him:

"I would charge a one-time session fee of $400 to record the Intro and Outro, which you could then use as you wish for as long as you wish. For the additional introductory paragraphs, I will give you a half-hour rate of $200 for each new script - as long as they are about as brief as the script samples you submitted *(e.g., about half a page each)*."(I expected to record the Intro and Outro in one session, then each separate script would be another $200 each).

My bid seems clear to *me*, but I'm too close to it to be objective. What actually happened though, was I performed ONE session where we did the Intro, Outro and 2 scripts (all in about 30-40 minutes total time). I sent him an invoice for $800. That's $400 for I & O, plus $200 for each script.

Saturday am, I get this message from my client:
"I know I originally asked for an estimate on what rate you would charge for an initial intro/outro recording session and then multiple additional customized sessions. At the time I was assuming that I would not get more than one script at a time and wanted to plan for the worst case scenario. However, since this time I was able to provide multiple scripts for the session I thought I was only going to be charged the $400 session fee. Please let me know your thoughts"

Was I unclear in my quote? Did I muddy the waters by using the terms "session fee," since this session was less than one hour? I don't think he's trying to pull one over on me, I think he really was expecting something different from what I was. This should be the start of an ongoing gig, not a ton of money, but regular. I'm inclined to explain my position, but then give him the benefit of the doubt and revise my invoice.

What do you think? Thanks in advance!
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Last edited by Tom Test on Sun Jul 26, 2009 7:21 pm; edited 1 time in total
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Philip Banks
Je Ne Sais Quoi


Joined: 20 Jun 2005
Posts: 11076
Location: Portgordon, Scotland

PostPosted: Sun Jul 26, 2009 10:20 am    Post subject: Reply with quote

Good will is worth more than money in this instance so take full responsibility for the misunderstanding and charge the $400 he was expecting to be charged.
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Deirdre
Czarina Emeritus


Joined: 10 Nov 2004
Posts: 13023
Location: Camp Cooper

PostPosted: Sun Jul 26, 2009 10:30 am    Post subject: Reply with quote

Yeah— it's the perennial misunderstanding of "script" versus "time".

Maintaining good will and your reputation for being a capital-g Good Guy will serve you greatly and are going to be worth a lot more than the missing $400.
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Tom Test
DC


Joined: 23 Jan 2007
Posts: 629
Location: Chicago, IL

PostPosted: Sun Jul 26, 2009 10:40 am    Post subject: Reply with quote

Wow, to hear two of the folks I most respect on this forum chime in so quickly with advice that confirms what my gut tells me - well, that makes my decision easy. This is not a situation where I need to "put up my dukes."

Thank you, Phillip and Deidre. I'm also happy to hear other dissenting views, but my mind is made up.
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Lance Blair
M&M


Joined: 03 Jun 2007
Posts: 2281
Location: Atlanta

PostPosted: Sun Jul 26, 2009 10:57 am    Post subject: Reply with quote

This is one reason why I never ever EVER charge by studio time, only by project segments or length of script - especially when it comes to podcasts. They're paying for a finished product, not for how much time the session takes. They should want the finished product to take as little time as possible. Really, they should pay us to do a job more quickly, not in more time.

Another reason why I don't charge by time is because clients eat up their own time too. Some clients are a joy to work with, others are inefficient. With a current project, I've probably wasted two hours in phone calls and emails on an easy project that I could knock off and edit and upload in an hour. Thankfully, this has already been built into the cost because I know what they're like.

My opinion is your quote was clear, and he's trying to get you to "do a solid" for him. Sometimes, any inch you give them, they'll take it. You gave him four products, and he only wants to pay for two. Too bad that you were able to do it quickly and save him some of his precious time, which he is now wasting by haggling with you.
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Tom Test
DC


Joined: 23 Jan 2007
Posts: 629
Location: Chicago, IL

PostPosted: Mon Jul 27, 2009 9:37 am    Post subject: Reply with quote

Lance, I can't argue with anything you just said, and you have some helpful advice for me going forward. My particular situation is a bit tricky, because this new client is a colleague of a long-time and regular customer of mine, who I'm sure put in a good word for me. I don't want to make him regret sticking his neck out for me.

Also, the new client seems pretty young and unfamiliar with my business. I've done a little educating about what he should expect going forward, so hopefully we won't have any more misunderstandings.

I've just realized that this is the very first podcasting gig I've ever negotiated on my own, and my first podcasting gig that promises to be monthly repeat business. It's been a learning experience for me.

Again, thanks to Phillip, Deirdre and Lance - you've all helped tremendously.
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Lee Gordon
A Zillion


Joined: 25 Jul 2008
Posts: 6864
Location: West Hartford, CT

PostPosted: Mon Jul 27, 2009 1:33 pm    Post subject: Reply with quote

I agree with those who say to send the bill for $400. However, in so doing, I would reiterate your original terms and conditions, take the blame for not making yourself clear enough (despite the fact that you had), and remind them that in the future you will bill according to the original formula.
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ConnieTerwilliger
Triple G


Joined: 07 Dec 2004
Posts: 3381
Location: San Diego - serving the world

PostPosted: Tue Jul 28, 2009 2:54 pm    Post subject: Reply with quote

I blogged about something like this a few days ago. This is a bit of it...

Quote:
Negotiating rates is the hardest part of my job. I much prefer to have an agent involved in this process, but more and more of my work comes directly to me from my website from places outside the range of my various agents. So more and more, I find that I am providing quotes. Add in the auditions from the P2P sites and a LOT of time is spent figuring out rates.

I have a set rate card for most projects now that I use as a starting point, but there is always something that makes the rate card difficult to apply. The nature of the material may require additional dollars (or not). Or the turn around time is short necessitating a rush charge (or not). The project may be for a really good cause that warrents a discounted rate (or not). The project may actually be more than one project, but will be done at the same time which could indicate a reduced rate for the extra projects (or not). There are so many variables.

Additionally, there are other factors affecting the negotiating process.

- The economy is making it hard to know which of my clients are able to maintain the established rates and which will want to negotiate something lower.
- Many clients refuse to work through agents – thinking (perhaps rightly so) that they will get a better deal going directly to me.
- Clients who are working as the intermediary between me and the end client.

This can cause a communication breakdown


Here is the link to the whole post - http://isdnvoicetalent.wordpress.com/2009/07/14/was-there-a-lesson-to-be-learned/
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