Earlier quoted context omitted.
> Do not be afraid to lose business from companies that are squeamish about paying you - in fact actively avoid such companies. My boss said that the ones who have negotiated the best deals are the ones that are late paying, complain about just about every bill and will write angry letters when my boss index adjust pricing. He said it taught him to never offer a really good deal for a regular customer (ie where the u…
I'm not sure that's the best takeaway here, in that it gets the causation wrong. It's not the deal that made the customer bad, it's that the bad customer insisted on getting a deal, whereas a good customer usually knows what quality costs and is prepared to pay. The takeaway here is probably that the fix isn't just "never discount", but it's to screen for the kind of customer who treats a good deal as an invitation t…
This is really the key. The "deal" has to have something for both parties. The vendor gets some kind of lock-in, prepayment, guarantee of future business, whatever it is, and in exchange the purchaser gets a discount.
The discount doesn't just come out of nowhere.