“Because our competitors do” Is Not a Good Enough Reason

One of the arguments Erik has sometimes with other entrepreneurs and even internally at Array Digital is whether someone should do something because someone else offers that service.

Erik recently had a client that came to him, someone that had been a client for months typically paying by ACH who now wanted to pay by check with net 30 terms. We don’t accept net 30 terms. If someone’s going to pay us by check, we give them 7 days. Our billing is the same every single month and there’s nothing for our clients to review.

The client said on the phone that in business it’s customary to give net 30. But we don’t do it that way and we want to be paid up front. You can set your payment terms however works for you and you shouldn’t be pressured to change it because someone else does it that way.