Parc Entertainment - A Video Production Company - Birmingham, AL

Based on the lessons I’ve learned by running a business, I have written several articles on this blog pertaining to entrepreneurship. Earlier this year I wrote an article providing tips on what you need to have in your contract before starting any job. As I looked back over that list, I realized that I missed something very important. What happens if your client decides to pull the plug before the project is finished?

“No problem,” you say, “my client paid me a deposit up front.” That may be true, but a deposit usually only covers certain up-front creative costs. Let’s say the time you have invested into a particular project now exceeds the amount of the deposit. Let’s assume that you are well into phase two, when all of a sudden, the project is put on hold. Your client becomes unresponsive. When he/she does finally return your calls, he/she says that the company has been forced to table the project. So, how do you recoup the cost of your time up to that point?

Since this has happened to me before, I now insert a clause into each of my contracts which says something like, “Should Client terminate the project before its completion, Client is responsible for paying Company all unpaid costs incurred in the production of this video up to the date of termination.” By inserting this sentence, I can cover myself in case my client decides to shelve the video project before it’s complete. The wording of your contract ultimately might be a bit different from mine, but the point is to make sure that you get paid for your time.

A few weeks ago I was contacted by a client in need of some footage that was shot back in 2005. I went through my archives and found the footage in question. It seems that my client, during a recent office restructuring, had misplaced their original copy. They indicated that they would be happy to pay for the replacement copy.

I made the transfer, packaged it, and shipped it along with an invoice that reflected my standard charges for time and materials. I received a call shortly thereafter from the client who was surprised at the cost of the transfer. I could tell she was unhappy. I did my best to explain my rates and why she was seeing this particular amount on her invoice. She paused, then said, “Well, seems like there’s not much I can do. I guess you’ll be getting a check.”

I could tell that the conversation didn’t end well. She just wasn’t satisifed. I hung up, the tone of the discussion still looming over my head. “I need to make this right,” I thought. This particular client had given me an opportunity to do some work for them back in 2005 and were pleased with the results. Now they have expressed interest in hiring me again for upcoming video projects. I didn’t want to do anything to jeopardize this working relationship, so I sent my client an email, along with a revised invoice. In my email I apologized that the price caught her off guard and that I wanted to maintain good relations with her company by reducing the amount of the transfer.

It’s important to get paid for the work you do. And it’s important to know what you’re worth. But what’s most important of all is customer service and the rapport you build with your clients. Exceptional customer service will go a long way and it will prompt your clients to hire you again and again for future work. You can afford to make short-term sacrifices for long-term gains.