REFUNDS....HOW THEY WORK

Example: Scott Associates discovers a $100 per month data circuit, for which the client is paying, which the client can document they ordered disconnected three years previously. Scott Associates obtains a 3 year refund, and corrects the bill error. In this instance the client benefits from both the cessation of the erroneous billing and from the refund Scott Associates obtains on the client’s behalf.
NOTE: THIS IS A COMMONLY FOUND ERROR.

  Without Scott Associates With Scott Associates
Year 1
Erroneous charges continue: ($1200)
No refund recovered: ($3600)
Refund: $3600
Savings: $1200
NET GAIN: $4800
Less our fee: ($2400)
Net gain: $2400
Year 2
Erroneous charges continue: ($1200)
Savings: $1200
Less our fee: ($600)
Net gain: $600
Year 3
Erroneous charges continue: ($1200)
Savings: $1200
Less our fee: ($600)
Net gain: $600
Year 4
Erroneous charges continue: ($1200)
Savings: $1200
Less our fee: ($600)
Net gain: $600
Year 5
Erroneous charges continue: ($1200)
Savings: $1200
Less our fee: ($600)
Net gain: $600
  Without Scott Associates
5 YEAR NET LOSS:
 ($9600)
With Scott Associates
5 YEAR NET CLIENT GAIN:
 $4800

Scott Associates invoices its clients for refunds ONLY when documentation appears on the clients bill in the form of a credit or the client receives other payment. Payment for refunds are due net 10.



 

 
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