Always ask for too much

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Always ask for too much

always ask for more than a debtor can affordIf a debtor wants to make a payment arrangement.

To “pay off” their debt …

1:  ask for more that you think they can afford, and
2:  ask them to pay it more quickly than you think they’ll be able to.

To explain: If someone asks you for a large donation then “settles” for a much smaller one, the smaller figure may not sound like that much money when compared with the larger sum you’d been considering a moment before. In addition, you may feel as if that person has made a concession by accepting a lower number and that you “owe” them one as well – i.e. making the small donation they wanted from you all along!

So, from a negotiating point of view (when collecting an overdue account payment) if you concede and accept a lower payment amount (as, in all reality, you may well have to) you’ll end up with a much better result than otherwise.

In his book, “Influence: The Psychology of Persuasion“, Dr Robert Cialdini identifies six specific techniques that are able to trigger an almost mindless compliance from people due to their alignment with psychological vulnerabilities that most of us share. Reciprocation is the first, and that is why you will end up with that higher commitment.

AND, while on this topic …
This is what most people say when a debtor wants to make a payment arrangement
   *  Well, how much can you afford, or
   *  Come in, let’s talk about it, or
   *  I need you to pay at least half, or
   *  I need the full amount now, nothing less will do, or
       (and this is the most common one)
   *  Can we come to some sort of an arrangement?

Every one of these is wrong – in most cases.
Would you say anything different?
Click here to see why and what you should say.
AND, when relevant, get your arrangement in writing.

By | 2017-07-13T08:51:41+00:00 April 25th, 2012|techniques|1 Comment

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.

One Comment

  1. Dave Ketzenberger June 29, 2012 at 1:51 am - Reply

    Believe it or not – I’ve found the question “How much is it that you’re saying you can do on this account” – has MANY times, resulted in higher payment arrangements. Collectors are sometimes to quick to suggest a payment of 25,50, or 100 mo. We have had 2 instances of people paying $1000 month that I can attribute directly to this question being put before them. Many instances of 500 mo. And, again, MOST of the rest, have resulted in a higher payment than what a collector would have been inclined to ask for.

    -Dave Ketzenberger
    A R Recovery Solutions of Hawaii

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