BUSINESS
Billing friends and family
Sometime ago, I was with a friend of mine, a beauty consultant, as she had a heated telephone conversation with her elder sister. Her sister had recommended her to a bride that needed makeup services for her big day; she spoke with the bride and based on their discussion gave the bride a fee for the service. Well, the bride wanted a better deal and called big sister to intervene. Big sister called and the conversation quickly turned sour. Apparently, big sister always feels that she can set rates for her sister when she refers a client and will call little sister disrespectful and ungrateful, and go as far as reporting little sister to the parents if she refuses to accept the rate that big sister thinks she should do the work for.
While we appreciate the business that comes from and through family and friends, and would very much hate for money to spoil our relationships, it is important to keep in mind that you are running a business. The business must turn a profit, otherwise you will soon be without a business.
Let’s face it, friends and family are often the worst when it comes to paying for your goods and services. We all like freebies, and when it comes to family, some people even feel a sense of entitlement. Why have a doctor or lawyer in the family if you have to pay full price for their services like everyone else, right? What about those hot pair of shoes in vogue?
About 15 or so years ago, I used to patronise a cyber cafe on Ahmadu Bello Way in Victoria Island, Lagos. The owner of the business was what some might call a tall, handsome drink of water and reciprocated all flirting from the ladies, but very importantly for the business, he was not in charge of billing and payments. He had a bouncer-looking guy in that role (his was just marketing and PR). I also noticed that somehow, after major flirting with some ladies, he was never around when it was time for them to pay up. The man had his eye on his money – as my people say, “person wey dey cry dey see.”
By all means, give reasonable friends and family discounts, but let them know what you normally charge. Prepare an invoice like you normally would do for a non-related client and deduct the discount on the invoice. If you have an assistant, client relations officer or accountant, let the bill come from them. Keep it official!
Your invoice could look like this:
Professional fee for services N 250,000
Less 50% friends and family discount (N 125,000)
Total due N 125,000
Let them see what the going rate for the service you provide for them, and hopefully, they will be more appreciative of the friends and family discount that they get. It’s easier to give deep discounts when there are no external inputs – whatever you decide, keep in mind that there is rent to pay, staff salaries to cough up at the end of the month, and shelves to restock with product.
Bill wisely!
