always ask for “the lot” first

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always ask for “the lot” first

always ask for 'the lot' when chasing overdue accountsWhen you’re chasing overdue accounts, always ask for full payment first even if you think they can’t afford it.

Then you can use the Reciprocal Concession Rule as a subtle persuasion technique to get a better payment arrangement than you would otherwise have got.

Doctor Robert Cialdini in his book, “INFLUENCE”, explains it well, essentially saying … Reciprocal concession is another aspect of the reciprocal principle. A requester makes a request that is extreme and most likely will be rejected. The requester then makes a request that is more likely to be accepted by the receiver of the request.

This rejection and retreat tactic
causes people to say yes more often.
 

Cialdini cites an example of a Boy Scout who approaches people to buy a ticket to the Annual Boy Scouts Circus.

Most people do not have any desire to go to the Boy Scouts Circus so they reject his offer of the $5 ticket.

The Boy Scout then asks the person if they would like to buy candy bars at $1 each.

Most people believe $1 is a fair price for the candy bar so they purchase several of the bars the Boy Scout is holding in his hand.

The Boy Scout accomplished his aim for the fund raiser. This example supports the general rule that a person who acts in a certain way towards us is entitled to a similar return action.

So, ALWAYS ask for full payment FIRST
 

and then, if you have to offer to offer to accept slightly less later, the debtor is far more likely to agree to your second request, as they’ve already turned down the first one.

By | 2020-03-20T04:39:06+00:00 April 12th, 2011|miscellaneous|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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