Policies

 

Terms of Payment and the 2010 Cost Reduction Program Amended 01May2011  

 

For the policy that was in place prior to 04May2010, click here.

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Amended 01May2011:

ORDERING PRODUCT
If you need product ordered, such as new systems, software, parts, etc, we are now, in most cases, able to offer you on option in which we use your company credit card to make the purchase. In these cases, we will bill you a $20 handling fee for placing and managing the order, but you get the benefit of being able to defray that actual payment according to your credit card provider's terms, plus you can avoid any markup that would occur as compared to the more traditional process of passing the order through us. In most cases, even with the $20 fee, you will be able to get a lower overall cost AND a 30-day or more delay in payment for the product. This way we can use our volume purchasing power, combined with your credit card's delayed payment, to get you the best combination of price and delayed payment. And you still don't have to deal with the ordering headaches.
Alternatively, we are still happy to order and then invoice product in the traditional way. In this case, we will add a 6% markup to cover the overhead expenses of cashflow, business taxes, etc. We will also charge the same $20 order handling fee.
Some items will not be practical to order on your card, such as parts purchased in town for immediate use, or for items that we might purchase from a supplier that will not allow the newer process.

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Beginning with invoices dated 04May2010 , you have an opportunity to lower the hourly rate you pay for Goodwin PC, from $120 per hour to $100 per hour.

There are three way to lower the rate. Two of the three ways can each earn a $10 per hour credit. The third way can earn a $20 per hour credit.

Simultaneous with the implementation of these cost reduction opportunities, all invoices dated 01Mar2010 and later will be include normal payment terms of Net10 days from the invoice date, after which the late-fee system applies.

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The three ways to lower your hourly rate are:
A) QUICKPAY: All invoices are due NET10 days. If you pay on time, a $10 credit per full-rate hour (defined below) will be applied to future invoices. After the Net10 day period, a Late Fee applies. Click here for details.
B) REFERRALS: A $10 credit per hour, applied to future invoices, for all full-rate hours worked for the first year at new customers that you refer to us.
or
C) PREPAY: A $20 credit per hour for prepaid full-rate hours.
Note that if you choose to PREPAY hours, you cannot use QUICKPAY or REFERRAL benefits.

A few general rules apply for all three opportunities:
1. These policies are subject to immediate change if we determine that there is some form of abuse or loop-hole that someone tries to take advantage of. The goal here is to help our customers, not put Ed in the poor house nor get him on Prosac.
2. Due to unmanageable complexity, there is no room for exceptions nor personalizations of these policies. For example, it is effective for invoices DATED 01March2010 and later, without leeway.
3. The start date is based on the INVOICE DATE, not the DUE DATE.
4. FULL_RATE HOURS: Cost reduction opportunities apply ONLY to hours that have been billed at 100% charge at $120. Granularity is quarter hours.
5.Credits are applied 1-for-1 as new hours are invoiced. Example: If you pay an invoice that is $480 for 4 hours at 100% and $120 in such a way as to earn the PREPAY credit of 4x$10, then you have another invoice 2 weeks later for 2x$120, that newer invoice will receive 2 of the PREPAY credits for a total of $20. The remaining $20 of credit will wait until the next invoice. REFERRAL credits work the same way, but can be used concurrently with PREPAY credits.
6. Credits are ONLY available if your account is in good standing. If you have outstanding late balances, you can neither earn nor use credits.

The invoice form has been modified to be consistent with these changes:

 

FAQ's
1. Are the cost reduction opportunities applicable to the invoice I received on Saturday 27Feb2010?
No. Cost reduction is automated to begin for invoices that are dated 01March and later. Since we generally send invoices on Saturdays and Wednesdays, the first invoices that will be cost-reduction eligible will go out on Wednesday 03March2010.
2. I have made referrals in the past; can I get REFERRAL credit for that?
No. We greatly appreciate the referrals we have had and we recognize that it is vital to our business; that is one of the reasons we have tied it to some benefit for you. The reason is ALL of our customer base has been via referral. To go back and try to effect historical referral credits would be prohibitively expensive, extremely time-consuming, and impossible to get accurate.