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DISCOUNTS: Can you use them to boost cash flow?
- Article from:
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DVM
- Article date:
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June 1, 2008
- Author:
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Copyright informationCopyright Advanstar Communications, Inc. Jun 2008. Provided by ProQuest LLC. (Hide copyright information)
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Discounts are a popular marketing tool to encourage clients and customers to pay faster. Many suppliers offer them to improve their cash flow. Like many professionals, some veterinarians offer a trade discount of sorts for immediate payment upon completion of services, but they may give little thought either to the cost of offering discounts or how much they might save by using discounts offered to them.
Prompt client payments improve a practice's cash flow, reduce the need for borrowing working capital and result in far fewer collection problems. Little wonder, then, that many professionals and businesses offer discounts or other incentives to speed payments.
But how much can your practice ...