Discounts: Acknowledging Payment – Unearned Discount

Discounts: Acknowledging Payment – Unearned Discount

Comment:  Unearned discounts always pose a problem in letter writing tact. New customers do not always know about discount terms, but they can be developed into excellent “discount customers” – if they are handled right. The following two model letters tell a customer diplomatically that you are “allowing the discount this time”, but you expect that discount dates and terms will be met promptly in the future. In the case of an honest error, you will have made a friend; and if somebody is trying to “put one over,” the hint will probably be strong enough. At least, you will establish a precedent on which to disallow the discount the next time.

Example 6

Thank you very much for your payment of $(   ) for invoices of (date).

Since you are anxious to get the greatest possible (benefits / profits) from our (service / merchandise), you will want to take advantage of our discount privileges.

Our terms of sale are ___ and invoices paid by (date and other pertinent information) earn a discount amount of (amount).

Your confidence in us is appreciated, and we’ll do whatever we can to serve your best interests. If you have any questions regarding our terms or if we can be of help in any way, please let us hear from you.

Example 6A

Thank you for your payment of $(   ) for invoices of (describe).

But did you realize it was mailed after the discount period, which ended (date)? You see, our terms specify that payment must be made within 10 days of the date of invoice … not receipt of merchandise … to take advantage of the discount.

As you may have misunderstood our terms, we’ll allow you the deduction this time. However, to ensure you this extra profit in the future, we count on your cooperation in sending us your check in the time limit of our terms.