query - client wants to deduct 50% of final amount

genesco_2

I have a small business which recently done a video job for a company, but due to unforseen technical problems we delivered the masters a month and a half late after deadline.

We had given them a discount rate a the beggining cause the clients were trying to keep cost down.
We started the job without the 50% deposite upfront like we always ask for cause they were very busy and had forgotten to send it to us.

Now they want to deduct 50% of final amount cause of delay of dvd and cause they had to answer lots of phone calls to customers as to when they were going to recieve dvd. and because we never answered their 1 email they sent us and the phone calls they say they made although we only had one message left by them.

When we spoke to them and explained the problems they seem to be alright about it and no mention of the deduction was discussed then or mentioned then.

The deduction was sent in an email to us before we had completed the job, but we nevr noticed this email until after the job was ompleted as our internet has been playing up.

The product we gave them was much better quality than the one we provided them with before and they have had no complaints.

where do we stand on this.

would be grateful for any help.

Kylie

Was there any contract made up before work commenced?

lauraaurora

While I can't comment on where you stand legally, I think you have been caught out. In the media business, a deadline is something you don't miss, otherwise you lose out financially. As someone who deals with the three major news broadcasters on a weekly basis, if I were to miss a deadline, my company wouldn't get paid.

You appear to have conducted the whole job in an unprofessional manner from start to finish. I think you need to do some damage limitation here, to try and restore your reputation and any possible relationship you may have with this other firm. I would go back to them, cap in hand, and ask that they pay you enough to cover your costs, and you fully understand that you should not profit in anyway from this job. Then let them know if they ever come back to you again then you'll perform much better next time.

And for the record, I don't just deal with the broadcasters, but corporate clients and the general public. In the video world, 6 weeks past the deadline is an eternity to those waiting to see a finished product. Quality is no longer an issue when the deadline has been breached, and is probably irrelevant now. If you'd delivered the product on time, that's when you can boast about the quality.

Whatever your 'technical difficulties' were that led you to being so late, I suggest you hold a de-brief with your staff to ensure it doesn't happen ever again.

None of this is said to be harsh, but to help you understand the other perspective here...

Savvy_Sue

lauraandclive wrote: »

In the video world, 6 months past the deadline is an eternity to those waiting to see a finished product.

I don't know if you meant to say 6 WEEKS, but that's 'all' they were late by ... I suspect that's still an eternity in this line of work, however, and agree with all you said.

To the OP: whatever your internet problems were, sort them. Make sure your email is thoroughly checked and dealt with promptly. And make sure your answerphone is working too, and checked regularly, and messages passed on in a way which ensures they won't get lost.

genesco_2

thanks for the reply lauraandclive, I understand that it was our fault that we missed the deadline, it wasn't by 6months as you pointed out. I agree we should give them some kind of discount but 50% is a bit harsh.

There was no contract signed.

Savvy_Sue

genesco wrote: »

There was no contract signed.

Which is another thing to sort out before any future work is started, for anyone.

You could play on the 'you were too busy to send the initial payment' line but I wouldn't hold your breath.

Do you think you are likely to get future work from them? If you are, then following lauraandclive's advice sounds more and more sound.

lauraaurora

genesco wrote: »

thanks for the reply lauraandclive, I understand that it was our fault that we missed the deadline, it wasn't by 6months as you pointed out. I agree we should give them some kind of discount but 50% is a bit harsh.

There was no contract signed.

I meant 6 weeks, sorry. But everything I said still stands. Maybe consider what I suggested about losing any profit you would've made...

Horace

I think that in future that you ensure that you have a proper contract and agree the terms..that way you won't be stung for 50%. To miss a deadline in the media business is unforgiveable, the same as failing to answer emails. You need to be professional and I am afraid that you haven't come across that way..remember that if you give bad service then your clients will let everyone know that you have given bad service and you just won't get any business.

If you realised at the start that you had a technical problem then you should have hired in some new equipment whilst the problem was fixed rather than letting the customer down.

Be thankful that you are being paid at all.

pelirocco

genesco wrote: »

thanks for the reply lauraandclive, I understand that it was our fault that we missed the deadline, it wasn't by 6months as you pointed out. I agree we should give them some kind of discount but 50% is a bit harsh.

There was no contract signed.

You must , must , must get a procedure onboard that includes full quotes , contracts and terms and conditions .

DCodd

I would imagine that if there were a contract in place that it would not have offered any better prospect for payment being that the product was 6 weeks overdue. In fact penalty clauses for missing deadlines could leave the supplier owing the client.

If you are totaly reliant on internet and e-mails for your business, may I suggest you get a second connection, be that dial up, a second adsl or mobile account and maybe a blackberry or such like that you can at least get your e-mails on.

I would take the hit and make sure this never happens again, sorry if that is not what you were hoping from us on here.

genesco_2

Horace wrote: »

I think that in future that you ensure that you have a proper contract and agree the terms..that way you won't be stung for 50%. To miss a deadline in the media business is unforgiveable, the same as failing to answer emails. You need to be professional and I am afraid that you haven't come across that way..remember that if you give bad service then your clients will let everyone know that you have given bad service and you just won't get any business.

If you realised at the start that you had a technical problem then you should have hired in some new equipment whilst the problem was fixed rather than letting the customer down.

Be thankful that you are being paid at all.

The technical problem came towards the end of completing the project.