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patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

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Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

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    1. Patrick McKenzie‏ @patio11 Apr 6
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      n.b. If you're a well-operated B2B SaaS company you long since have given your front-line CSRs the ability to authorize this accommodation on their own authority up to $X00 (minimally) because this is such a screamingly obvious call that it isn't worth Finance or management time.

      3 replies 0 retweets 38 likes
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    2. Patrick McKenzie‏ @patio11 Apr 6
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      When I ran a SaaS company the standard language was approximately: "No worries, we're a small business too and know times can sometimes be tough. I've told the accountant to write off the X invoice in consideration of you being a good client. Best of luck and skill."

      1 reply 0 retweets 53 likes
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    3. Patrick McKenzie‏ @patio11 Apr 6
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      Commentary: I don't actually have to get the accountant's approval for business decisions, and technically the interaction was "I pushed a button and it does what the accountant would expect it to do without paying him $600 an hour to examine a communication."

      1 reply 0 retweets 28 likes
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    4. Patrick McKenzie‏ @patio11 Apr 6
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      And mentioning the "small business" part is not accidental, because I know you probably have a boss who has asked you to shake down all the vendors, and I expect you go back next month and say "I just wouldn't feel right doing it again."

      1 reply 0 retweets 30 likes
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    5. Patrick McKenzie‏ @patio11 Apr 6
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      "What do you do if they refuse to pay next month?" Mostly they don't; they slow roll invoices and a SaaS company leisurely attempts to convert invoices to money. If they outright refuse to pay, cool, businesses gonna business. Really clear no regret decision at that point.

      2 replies 0 retweets 27 likes
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    6. Edan Maor‏ @edanm Apr 6
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      Replying to @patio11

      What about in consulting? I've seen things like: we can only pay half on invoices until [external thing happens], including previous invoices Say no, you're on a list of vendors they'll pay if/when they can. Say yes, you're doing more work for low rate but more likely to be paid

      1 reply 0 retweets 1 like
    7. Patrick McKenzie‏ @patio11 Apr 7
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      Replying to @edanm

      *shrug* Negotiations are negotiations. I don't think I'd agree to work at half rate. I think I could be flexible on payment terms for a favored client. I think if I routinely ran into that I'd perhaps rethink client qualification practices, deposits, etc.

      1 reply 0 retweets 1 like
    8. Edan Maor‏ @edanm Apr 7
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      Replying to @patio11

      Not always so easy. Example - I know of a company that had a contract with a large government entity. 10 developers on a year long project. After a year of payment, they stopped paying for internal reasons "that we're going to fix any minute". They were net+tons.

      2 replies 0 retweets 0 likes
    9. opendna  ⚙️‏ @opendna Apr 7
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      Replying to @edanm @patio11

      I know a contractor stiffed by the feds for +$15k because the Trump appointee decided not to honor and pay out any contracts signed by Obama appointees. What are you gonna do? Sue?

      1 reply 0 retweets 0 likes
    10. Patrick McKenzie‏ @patio11 Apr 7
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      Replying to @opendna @edanm

      Assuming performance done? I model that invoice as "money good" and extremely unlikely to require a lawsuit to collect, and should it actually require a lawsuit to collect, I model many, many parties as being willing to factor it or otherwise take on non-payment risk for a fee.

      2 replies 0 retweets 1 like
      Patrick McKenzie‏ @patio11 Apr 7
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      Replying to @patio11 @opendna @edanm

      If it were me, and I had written refusal to pay in hand and presumably did not want to ever work for that appointee again, my next phone call would be to Constituent Services at local congresscritter's office. "Faxing you signed contract and refusal to pay. Signed, local SMB"

      1:59 AM - 7 Apr 2020
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      • opendna ⚙️
      1 reply 0 retweets 1 like
        1. Patrick McKenzie‏ @patio11 Apr 7
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          Replying to @patio11 @opendna @edanm

          That tees them up to send one letter with approximately two paragraphs of content. There is only one outcome of that letter.

          0 replies 0 retweets 2 likes
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