View Full Version : Companies not prompt in paying for your photography services


marvindungao
08-24-2007, 10:47 AM
Hi guys,

I don't know in which thread should I put this inquiry, thats why I just put here. Anyway, I've been shooting several events of a certain company now, as of now, they still hven't payed for the services. Good thing is I have provided a contract for every shoot that we made, whenever i call their treasury they always told me to just call tomorrow or next week.

For those who already experienced do you have pointers on how to make those company pay at the right time? is it ok or isnt it rude to say in the contract that the payment should be payed right after the event? Thank you in advance

Raffy Crucillo
08-24-2007, 10:57 AM
In general, companies will strive for longer credit terms.

It's just a way to maximize their money. I'm not saying that it's the general practice, since there are companies who pay outright. It's one of the quirks with dealing with corporate clients-- they can give lots of business to its suppliers, but the latter has to put up with delayed collections.

marvindungao
08-24-2007, 11:22 AM
haaay... it's just ironic na they generate a lot of money from their business but is very slow in paying. Unlike in weddings na pay agad yung couple. But in your case what do you do? do you always follow up po? or is it ok to follow up?

Raffy Crucillo
08-24-2007, 01:30 PM
haaay... it's just ironic na they generate a lot of money from their business but is very slow in paying. Unlike in weddings na pay agad yung couple. But in your case what do you do? do you always follow up po? or is it ok to follow up?

I'm not into the business, just speaking from others' experiences and from what I've learned.

That's one of the reasons why a lot of the big corporations got "so big". Not by "not payng" their suppliers, but maximizing the use of their money. And since the big companies have a lot of business, they can throw their weight on their suppliers. Of course its OK to follow-up, as they also have an obligation to you.

hochi_abaya
08-24-2007, 01:55 PM
Just put in your contract your desired payment terms and a provision to charge interest for late payments.

Is it ok to follow up? Of course. Not only is it ok, but it is well within your right to do so.

marvindungao
08-24-2007, 02:28 PM
Thanks guys for your replies!

Incase of the late payment charges... has anyone ever did this? i mean how much do you charge for late payment...just incase... thanks!

bernard billedo
08-24-2007, 02:36 PM
I usually give clients 1-2 months to pay up when I send them an invoice. For overdue payments, I just add a rebilling fee. That makes them to send the payment sooner. :D

bernie_ledesma
08-25-2007, 09:18 AM
Coming from a corporate side, it not really personal, its just that accounting departments have their list of requirements before they release payment, assuming all requirements have been met, following up with them will be the best thing to do.

Or maybe you can hold on to the images till full payment has been transmitted...:) Give them incentive to pay you.

ian_santos
08-25-2007, 09:46 AM
I agree with the suggestions stated here. Just to add, try to make it clear in your contract about your terms and surcharge for late payment. Sometimes clients assume they automatically get 30-60 day terms. Probably because those are the usual conditions given to them by suppliers. Use your judgment if you will apply a surcharge for late payments. Some clients get turned off by this.

Bernie is correct in stating that "big" companies are very strict in their accreditation requirements and will not release payment until it's complete...and this takes time. Also make sure if they require an official receipt for the job or if a simple acknowledgment receipt would suffice. Some people I know had problems collecting because they have no O.R. :)

Good Luck! :D

Ems Chua
08-25-2007, 10:26 AM
good thing na for me, when i shoot for companies (events, product launching), its payment after the gig, or payment when i give the cd. i usually dont release the cd pag di sila pay. :P

Nick Tuason
08-25-2007, 10:26 AM
This is the Philippines guys and companies pay you whenever they feel like it. If you try to include a surcharge for late payment they just give you the finger. After all, if you complain, do you think you will get their next job? Probably not.

Pocholo Ignacio
08-25-2007, 10:28 AM
All of the above? ... been there done that. I even issued a demand letter to one of the largest ad companies! I hate it when they (ad companies) say that their clients haven't paid them yet so until they get paid, they can't release anything to their suppliers. It's twisted logic. Can you throw them the same stupid logic as not paying for your food in the restaurant because the ad company hasn't paid you yet? Unfortunately, it happens in all industries.

Bottom line is how flexible you are. How important is this client to you and is it worth the heart aches? If it's a regular thing then perhaps you can give them some room. Most clients would be professional enough to tell you their check release dates. Otherwise, just ask.

My first few times dealing with such companies rocked my idealism. Soon enough I got hit on the head to know the difference between reality and fantasy.

Nick Tuason
08-25-2007, 11:06 AM
Pocholo,

Every week we hear the all too familiar "our client has yet to pay us so we can't pay you". Well that was in March and September is just around. Frustrated definitely. I think companies feel that paying for a service is different than paying for something tangible.

gilbertteng
08-25-2007, 11:20 AM
i suggest that you present in your contract the payment terms and agreements. whatever terms you put in, you may request for a PDC before you give them the details they need.

thats what i mostly do to my previous dealings with photographers(actually through an agency). now i do my own shots na lang. hope that helps :)

marvindungao
08-26-2007, 11:52 AM
Thank you so much for all the suggestions..... i already did 3 shoots and I have not been payed for the first shoot... sorry but im just a newbie in dealing with corporates...is it not offensive to ask if I can get the payment right after the photoshoot? I mean ask them days before the actual shoot?

Mods thank you for moving this to the correct thread

Arnell Umali
08-26-2007, 12:47 PM
Marvin,

This is the business side of the profession that you will have to learn to successfully manage else you fold up, not for lack of technical competence, but for not being able to economically support your venture.

Like in any business, you'll have to learn how to specify, drive, and execute agreement terms, assess client risks, etc. You don't have feel like a shmuck to collect what is due, but you shouldn't act like a jerk either. If you are an astute businessman as you are a competent photographer, then you will learn to minimize your problems and be more economically successful. Approach it professionally. Afterall, it is a transaction which is mutually beneficial (except you have not received yours).

In any organization, there operates a concept called "tyranny of middle management." Oftentimes, the lower level staff is worse. Learn which buttons to press and avoid.

Melwyn B. Alamag
08-26-2007, 01:11 PM
you can make follow up and a suggestion, ask for a DP then dont give the final print until they pay. just give contact prints

hochi_abaya
08-26-2007, 01:19 PM
if you will put a surcharge on late payments you have to first make sure it is either in the contract or on the sales invoice duly received by your client, otherwise you cannot legally collect surcharge on late payments.

It is a fact of corporate life and financial planning to stretch your payables and shorten your receivables. It's nothing personal.

Pocholo Ignacio
08-26-2007, 02:43 PM
Pocholo,

I think companies feel that paying for a service is different than paying for something tangible.

I agree. Now if only this could be addressed...what a better world it would be. :Angry:

lenard_po
08-26-2007, 03:41 PM
What company did you shoot for? Did you specify terms of payment?

I've worked with an airline company, although they don't give downpayments and asks for 30 days - they promptly give the check on the specified date (give or take a few days)

the best thing you could do about this is not accept anymore photoshoots with them until they pay up - sad part tho' there's a chance they'd find someone else to do it!

Richard Lazaro
08-30-2007, 02:07 AM
Instead of putting a surcharge in the contract, what usually works for me is offering a "discount" if paid within a certian period. It's the same concept, it just sounds much better than asking for more if the period has lapsed. :)

joseph barretto
08-30-2007, 02:19 AM
next time, include in the contract "the timeline" on when they should release the money to you. as ems chua said, no payment, no cd :)

Eisen Job Alquiza
08-31-2007, 04:59 PM
Something I learned from an ad company is to check how long a potential client takes to pay. Then take how much "interest" it would be from the time the contract is complete to the time the payment is actually made and add that to your usual rate.

marvindungao
09-17-2007, 09:19 AM
Hi Guys,

Thanks for your inputs.... finally got my pay cheques from them. I just had a one more pending cheque. I really am learning from this business ...as i need to protect my interest without screwing up client relationship... Anyway.. another question would be... When they start asking for discounts..?? like for example the shooting time was reduced from the usual shooting time that you had with them... lets say from 5 hours to 3 hours... and they pay you 5k for those 5 hours shoot then they ask if they should pay the same amount for the 3 hours shoot.. thansk!!

Harvey_Chua
09-17-2007, 12:59 PM
Hi Guys,

. Anyway.. another question would be... When they start asking for discounts..?? like for example the shooting time was reduced from the usual shooting time that you had with them... lets say from 5 hours to 3 hours... and they pay you 5k for those 5 hours shoot then they ask if they should pay the same amount for the 3 hours shoot.. thansk!!

It depends on what you agreed to shoot, and what you indicated to be your minimum time. If, for example, you had 10 set ups to shoot in what was originally estimated to take 5 hours - if because you are efficient, you did all 10 in 3 hours, then you should still be paid the same.

To be on the safe side, if you are charging by time, indicate your minimum and maximum number of hours for the same fee. For example, if you had indicated that your price is for 3 to 5 hours work, then even if you were done at 3 or 4, there would be no need to adjust your rate. Indicate also what you would charge if they went beyond 5 hours, so it is clear that the extra time is not free.

And even if you did in 3 hours what was originally indicated for 5 because of the change in their own schedule- for example, they scrapped some parts of the program - you may still charge for 5 because you had reserved 5 hours for them. You did not schedule anything else for those extra two hours because you were told to reserve 5 hours for them, and the change in the program was not within your control.

However, in fairness to client - if it was for a shoot of a few days, and the last day's requirements were cancelled and you were told two or three days before, then by all means, prorate your charges. It's not really a discount but an adjustment based on their revised requirements.

Good luck.:)

marvindungao
09-26-2007, 11:30 PM
@Guys,

Thanks for your inputs...im really learning so much...

@ Mam Harvey, thank you so much for that wonderful advice po.. I have actually included it na in my contract.

How about .. how will you know if its time to increase your pro fee? how do you do it? i mean how do you tell your clients in the best way that your rate will increase? Thanks in advance