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  • November 1, 2008

    BCMA - It’s All About You!

    Welcome to the latest issue of BCMA News!

    This month’s topics…

    1. Credit Today Survey Reveals That Credit Card Acceptance Is Growing

    2.  Should You Fire Your Attorney?

    3. Just Humor Me… It Could Be Very Lucrative! 

    4. Preparing for Negotiations: How to Get the Other Person to See Things Your Way 

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    1. Credit Today Survey Reveals That Credit Card Acceptance Is Growing


    The acceptance of credit cards as a payment medium has gained broad acceptance within the business credit community. Of the 93 people who responded to our survey on credit card practices, 80 percent indicated they are currently accepting credit card payments. Of the 20 percent not now accepting credit cards for payment, 78 percent indicated they planned to do so in the next year.

    If you are interested in getting set up to accept credit cards, you probably need go no further than your local bank. Should you need more comprehensive services, you may want to check out a few of the providers listed in the tables on page 14. These are the most popular credit card payment service providers as reported by those taking our survey. But make sure you do your due diligence. Several respondents recommended getting multiple quotes, checking references and reading the fine print. Not all credit card merchants are created equal.

    Also, you need to make sure your credit card merchant is PCI compliant and will ensure your system is as well. Payment Card Industry (PCI) Data Security Standards (DSS) have arisen to combat data breaches that compromise the privacy of credit card holders. For more information, you should go to http://www.pcicomplianceguide.org/aboutpcicompliance.html.

    Accepting a credit card for payment can present some challenges. One respondent observed that "cash application for credit cards is more labor intense than for an automated lockbox." If you expect a substantial volume of credit card payments, that might be a good reason to look into automating the entire process and putting it online.

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    2.  Should You Fire Your Attorney?

    Attorney Barry Smith offered this checklist to help you decide whether or not you should fire your attorney:

    1. Have you had a problem or experienced any of the following?
      • Attorney non-responsiveness - failure to return your phone calls or answer your letters.
      • The attorney takes too long to handle each aspect of the case - unexplained delays.
      • The attorney is always making excuses for why things are not done on time.
      • The attorney has inadequate support staff to handle cases.
      • The attorney does not keep you apprised of the status of the case, and when you call to find out the status the attorney has no idea what's going on.
      • Do you sense the attorney and your firm are not working together as a team?
    2. Beware of the attorney who is willing to accept the assignment of the case even though the attorney is not experienced in this type of matter; one's good intentions could end up costing you significantly.
    3. Beware of the attorney who is willing to discount his legal bill each time you make an inquiry; the bill should be accurate. This may be a sign the attorney knows you are being overcharged.
    4. Beware of the attorney who says he can handle matters in any court anywhere in the state; in small law firms, this is usually a sign that the attorney contracts out work to local attorneys who you do not know and have no relationship with, thus reducing the incentive to provide quality legal services.
    5. Beware of the attorney who exceeds the budget without your authorization and the only excuse provided is that "the work was necessary." The fact that the work may have been necessary is not a justification for failure to obtain your approval.
    6. Beware of the attorney who continues hearings, unable to take a default on the due date, misses court imposed deadlines and/or cannot act immediately on your behalf; this may mean the attorney cannot handle the volume of work.
    7. Beware of the attorney who charges attorney's time for secretarial, clerical and paralegal work.
    8. Beware of the attorney with whom other creditor have had unfavorable experiences.
    9. Beware of the attorney who charges you for research on legal issues involving a subject matter an experienced attorney in his field should already know. Did the attorney over-sell himself? It is cheaper in the long run to hire an experienced attorney.
    10. Beware of the attorney who charges for the supervision of junior attorneys at each phase of a legal matter; you should pay for legal services not for a junior attorney's education.
    11. Beware of the attorneys who charge you to correct their mistakes. Oftentimes a court hearing is continued because the attorney filed incomplete or incorrectly prepared documentation, pleadings, forms, etc. Also, the attorney causes additional work because of a failure to meet court imposed deadlines, or he continues matters because he cannot be in two places at once.

    Barry A. Smith, Esq., Buchalter Nemer, Los Angeles, CA, 213-891-0700, bsmith@ buchalter.com

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    3. Just Humor Me… It Could Be Very Lucrative! 

    According to a study by Hay Group’s McClelland Center for Research and Innovation in Boston, executives who were rated "outstanding" by their bosses used humor more than twice as often as those rated just average. "What’s more," the study found, "the funnier the executives were, the bigger their bonuses."

    While this might sound like confirmation that performance doesn’t really matter as much as it should, it really makes good intuitive sense. After all, humor is a great way to ease tension, to smooth over difficulties. In short, humor helps get things done, which is what counts when you’re talking about performance.

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    4. Preparing for Negotiations: How to Get the Other Person to See Things Your Way

    Have you ever thought about how much of your life is spent negotiating? Do you realize that every time you are having a conversation with someone who has a different point of view or a different opinion than you, you are actually negotiating with them? And it is not only in business situations, but all conversations with children, spouses, family and friends as well.

    Understanding and practicing negotiation strategies and tips can lead to smoother, more successful outcomes, not only when negotiating deductions and chargebacks, but in many of your day-to-day conversations (yes, even with your kids).

    To give you an example of the broad range of negotiation possibilities, the table below outlines just some of the things that can be negotiated in the area of deductions and chargebacks:

    Successful negotiating is not about winning. Rather, it is a sharing of information, a give and take where the ultimate objective is to achieve an outcome which is mutually acceptable to both parties. With this in mind, it is easy to understand why preparation is one of the keys to successful negotiating. Here are some critical elements to consider when preparing for a negotiation:

      • Know who are you negotiating with - What parties are involved? What are their personalities/styles? (e.g., Is it better to talk with them in the morning or afternoon?) What levels of authority do they have? (Do they have the authority to agree to what you want?) Do you understand their motives?

      • Understand the key issues - Does everyone involved understand the issues? Have you provided them with the background information so that they understand what is being discussed/negotiated? Are there areas that you have in common? Do you understand the areas that might present the most problems?

      • Gather the information you need to have an effective discussion - Have you gathered (and possibly sent the other parties) the appropriate information? Does the information contain both a summary to provide a quick understanding of the issue as well as more detailed support? Do you need to discuss the information prior to the negotiation? Will the information be acceptable to the other party? Do you need more time to gather the right information?

      • Know their position - Have you thought about the possible objections that the other side might have, and are you prepared to respond to them? Do you understand their key interests? Have you tried to put yourself in "their shoes" to understand their viewpoint and gain perspective on what might persuade them to see things your way? Do you have information about their negotiation habits?

      • Know your negotiation strategy - Do you know what you want out of the negotiation? Are your expectations realistic for the situation/information that you have? Have you developed several alternatives ("best case - worse case")? What level of authority do you have? (Know your limits and discuss with superiors before negotiating.) Do you need to reach resolution at this meeting, or is it okay to have additional discussions? Do you need to get the agreement in writing, or is an informal, oral agreement okay?

    Don’t underestimate the power of being prepared. The more familiar and comfortable you are with an issue and potential objections, the more likely you will be to keep your cool through the discussion and provide rational and supportable alternatives. Remember, most knee-jerk and defensive reactions come from being caught off-guard, or in my opinion, not properly prepared. Working through the questions above will improve your preparation dramatically.

    Jessica Butler is the founder of Attain Consulting Group, a deduction and chargeback management advisory firm. 201-280-4773 or jbutler@attainconsultinggroup.com

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