This weeks Biz Tip from Ross Collinson

1st Dec 2008

1. GST BACKWARD.

Have you ever wondered how to calculate e full price of an item? In Australia divide the total by 11 and in New Zealand divide by 9 and you will arrive at the GST component of the price. GST in Australia is 10% and in New Zealand 12.5%.

2. THE PROBABILITY OF DEBT COLLECTION.

It pays to turn up the heat on your outstanding accounts (Debtors Ledger) once they are overdue. Overdue receivables become 10% uncollectable after 60 Days, 33% to 67% uncollectable after 6 months and 55% to 78% uncollectable after 1 year. It’s well know that the debtors ledger can impact very quickly on a business’s sustainability.

3. “I CAN’T AFFORD IT” – (comeback hints.)

“Oh dear, I must have insufficiently stressed the exceptional advantages of our product/service…let me cover them again”

“ Ah yes, but have you really considered the tremendous profits you are guaranteed by using our unique product/service? These alone will more than compensate for your initial investment”.

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