Customer disputing Invoice

[Newbie]

I am looking for some advice on this matter.

I sold a business client an Anti-Virus solution and the customer paid for the software (I am a reseller) and this week we installed it. I invoiced them again for the install and the customer emails me saying they where under the impression that the install was included in the av order (they paid for the like 2 weeks ago) and I now am not sure what I should do. When they ordered I did tell them that when it comes in if they want, I can also install it but I never claimed it to be included. Its a $250 invoice that they are questioning and I dont know if I should just give into them and void the invoice or what. Any recommendations?

 

[iptech]

$250 to install anti-virus! How many machines did you install it on for that?

TBH if you didn't make it clear when you sold the software that installation costs weren't included, yet at the same time you agreed to return to install the software, then I can understand the confusion on the customer's behalf.

I suppose it does depend on how long you actually spent on installation to justify a $250 bill as to whether it would be reasonable for the customer to expect this to have been part of the original charge.

 

[cmonova]

When you sold it did you tell them it was extra to install it? Vague things like this can hurt your business. I would of said "I can sell you an anti-virus solution for $100, and if you want it installed it's an extra $50. So you are looking at a total of $150 to be completely all setup".

You have to spell things out to customers to make sure there is no misunderstanding.

 

[Newbie]

$250 to install anti-virus! How many machines did you install it on for that?

TBH if you didn't make it clear when you sold the software that installation costs weren't included, yet at the same time you agreed to return to install the software, then I can understand the confusion on the customer's behalf.

I suppose it does depend on how long you actually spent on installation to justify a $250 bill as to whether it would be reasonable for the customer to expect this to have been part of the original charge.

This is what it done

Installed AVG 8.5 Network Edition on 20 workstations and 1 File Server
Installed AVG Remote Administration and linked workstations/server
Configured AV/Firewall Policies
Minor Supporting of end users as I am the "IT Guy" but just an on-call basis.
Trained Owner to use AVG Remote Admin

Total Time: 5 hour(s) @ $50/hr

This will give you a bigger understanding of what was done for the 250 invoice.

 

[Newbie]

cmonova: I like your book

Anyway, yea I was vague about the installation of the AVG, so I do understand where the customer is coming from.

 

[OfficerLahey]

that's what i was thinking reading your original post, maybe you gave them the impression that you'd swing by and install it for them, which would sound to me like a free extra with the software, you should always make your terms clear and both parties agree before going forward with the sale.

on this occasion, maybe return to the client with an apology for the inconvenience, explain where you went wrong and see if you can find a level ground that your both happy with, if they're still not happy and continue to dispute, well then you can eithier drop the customer and probably not get paid, or eat the cost and keep the customer.

they sound like a good customer and providing they aren't cheapass' who are out for every bit of free labour they can get, it's always better to eat the cost and keep the customer imo.

 

[JosephLeo]

cmonova: I like your book

Anyway, yea I was vague about the installation of the AVG, so I do understand where the customer is coming from.

Since the discussion was vague why don't you give him a discount and consider it a lesson. You keep a happy customer as well as still make something although not much.

 

[iptech]

Five hours seems reasonable for the amount of work you did.

I think you've got two choices here:

1. Drop the whole invoice and take the hit;

2. Try and negotiate a reasonable settlement with your client. At least this way there's a good chance you won't lose everything and still keep your client.

One thing's for sure you just learned a valuable lesson for the future. Don't worry we've all made cock-ups on the way, I'm sure your client has done too in his business which is why I think you have a good chance of getting something back for your effort. Acknowledge your mistake to him and apologize for the misunderstanding and I'm sure he wont want to see you out-of-pocket. If you opt to do nothing, there's a greater chance you'll lose his respect and possibly his business.

Good luck and don't beat yourself up over it, stuff like this is what makes business interesting (usually!).

 

[SOHO-NZ]

1) Apologise to the customer for the confusion.

2) Explain to the customer that you are 5 hours out of pocket from this, but suggest that you meet half way on the $250. Don't force the issue.

 

[jbutler9]

Lesson Learned: Explain everything to the customer and have everything that you will do in writing on your Quote that they sign if they accept it.

2nd, you only charged $250 for 5 hours of work, and you are providing services for a business?

Installed AVG 8.5 Network Edition on 20 workstations and 1 File Server
Installed AVG Remote Administration and linked workstations/server
Configured AV/Firewall Policies
Minor Supporting of end users as I am the "IT Guy" but just an on-call basis.
Trained Owner to use AVG Remote Admin

Total Time: 5 hour(s) @ $50/hr

You know, if it was so easy to do then why didn't the client do it. Your expertise and knowledge are what they are paying for, and in my opinion you should not have charged less than $120/hour (for a business) and then maybe give them a discount of $100 or $150, and for the extra support I hope you are charging them for that too.

I mean, I try to save my clients as much money as I can, but I find it insulting for you to be taken advantage of like this.

 

[Tweak]

Minimum $500 job, so they got half price as is...when people give me grief I have at times asked them what they do, or since you know just the second half of my question...do you work for free or give away products, often they are fine and get the point, then you can sometimes get the full payment, other times workout a reasonable figure for both parties.

 

[MrUnknown]

I gotta agree with butler and tweak.

Sure, you may have made a mistake by not fully explaining to the client that they will be charged for your time, but they should know that you aren't going to work on their systems for free.

They probably thought the quote included install. Just be more careful next time. I honestly would try to push them into paying a bit more before offering a discount unless they are a good client. Otherwise, if they are going to argue with you about paying for your time and they are a new client, do you want them?

Also, as butler said, your price seems a bit low. It is actually lower than my residential rate for a pretty rural area. Then again, this also depends on your area, but I can't imagine you are charging less for residential. I would hope not anyway.

 

[atlanticjim]

I also have to agree with Butler and Tweak.
For a job of this size I would have presented a written estimate for them to sign off on before starting the work.

 

[georgenoise]

I agree with everyone else, always put it in writing. If they are a good or potential good client take the hit and apologize but in the future put everything in writing and have them sign off on it before you do it. Also don't shave any costs off invoices. Make sure to explain why you are taking the hit before you offer to wipe their bill clean though, sometimes a simple explanation and I'm sorry will result in partial if not full payment. If you do eat the cost I would end free phone support until I had recouped my loss.

 

[iisjman07]

You can't charge him full price for things you didn't tell him would need doing, doing so makes you no better than Geek Squad. I would apologise to the client telling him it was your fault for not making yourself clear. I'd give him a discount. It seems quite simple to me that you'd have to install the antivirus software whilst working your hourly rate, but meh...