Accountants are notorious for it. Discounting before sending the bill out. Commonly called a “write down”. Why oh why does this happen? Are you not proud of your product? Do you not have the guts to face the client and tell them the price? Do you not believe your team did a good job?

Some firms are great at doing this particular activity. I was in a firm once and they had $2.7M in write downs. To make a point I found a picture of a house worth $2.7M and then said that if they burnt it to the ground it would be more fun. Get a slab of beer, sit around and watch it burn baby. That’s effectively what this firm was doing.

What are you burning each year? A house? An apartment? A luxury car? Or even a motor bike? That’s gotta hurt!

House

Burning house

If you follow any of my material you will know that my preferred model is to give the client a price before you start the work. The have an hours budget on each job and drive the time down. In that case you get a ‘write up’ in most occasions.

If you are not pricing up front then you better not be ‘writing down’ the work at the time of billing. It’s just waste, loss of income and it says that you do not value what you do. STOP IT.

The other day I was in a retailer and they gave me a discount without even asking for it. I wonder if their Accountant advised them to do that because that is what they do!!!