Business Hitchers - client trouble - WWYD

A new client has signed a contract to say that they would take X for £X. We have a clear paper trail and we have always been very transparent about what the price included.

Now the first invoice has gone out, they are saying that, despite what the contract says, they thought it was half. They raised a purchase order for less than the full amount (which admittedly wasn't double checked by my accounts lady) and have said that is all they will pay for.

I have written them a reasonable email copying all the key documents back to them, and saying that, under the circs, the mistake is at their end and that they should pay what they agreed. They are now playing merry hell.

It's an influential client, so I don't want to piss them off, but on the other hand I feel as though they're using the might to pull a trick on a much smaller business. WWYD?

ETA verbal negotiations were done my an employee, so I cannot be 100% sure of what she said, although I believe her to be reliable and trustworthy.

If it was Me and If I wanted to keep their business, I would come ot an 'arrangement' over this issue and move forwards clearly with the Ts and Cs of the orignal contract.

If they are influential and you want to turn them from Customer to loyal customer to advocate I believe this is the way forward

HTH

Influential client or not, if a contract states that they are going to get x for £100 and then that is what they should pay.  And just because a purchase order was raised for a lesser amounts, well frankly that's cobblers as I know that another purchase order could be raised to make up the shortfall.

I would just remind them of their contract, and then remind them of the deadline for payment of the first invoice.  No need to mention lawyers or anything, just a friendly reminder.  If after the deadline, payment hasn't been received, then I think at that point you can start getting 'heavy'.

Whilst I get what MBK is saying about loyalty etc, so far, it doesn't look like they are after a mutually rewarding relationship which is the only way a client can become an advocate.  And to be frank, I believe that in these kind of cases, if you give and inch, they'll take a mile, and not just this time but everytime.

I agree with WifeyLind, I've had companies do this a few times in the past. It's always the bigger company that does it to the smaller company.

I have done both things in the past, I have let them win/come to an arrangement, but in the end the companies have become more hassle than they are worth - expecting money off everything or extras added for free etc etc and throwing a tantrum if you don't give in. This company will probably do it every time if you give in now.

So since then I have stuck to my guns and kept to my contracts/agreements. Even though some poeple still try it on and it is a worry you might lose them, normally they do stick around. If they have signed the agreement, they should have read it. It's a leagally binding doc and anyone in business knows it. People are always trying it on and it's something you'll just have to get used to. I've never felt my business has been damaged by sticking to my contracts.

Obviously you have to be business like, polite and professional about it all - but you can still do that without giving in.

Ok, so they are saying that your employee verbally agreed a price, which was 50% that stated in the contract? If that was the case then why did they sign the contract, I assume the price is clear?

It stinks that they are trying it on to me and I'd stick to my guns. If say they paid it monthly then I'd maybe say "as a gesture of goodwill I am happy to reduce this months but future payments will be at the amount stated in the contract, copy attached" but that would be as far as my negotiations would go. 

Thanks for all your responses. I am still chasing this up, but am not prepared to give them a discount TBH.

They didn't send a PO at all, so there was no mistake our end. We had no hint that there was a misunderstanding until they questioned the first invoice.

My salesperson is saying she quoted the price on the contract at, TBH, she's reliable. We've never had a problem like this before.