"We need to access your software urgently! Please send us your up to date program issue straight away."
"You need it urgently do you? That's a coincidence then because both our local Tax Office and Electricity supplier say exactly the same thing about our meeting their demands!"
Late Payment.
In your business maybe something like 25% to 30% of your costs are overheads. With our business the overheads figure is closer to 95%! The business of Mistral Associates revolves entirely around ‘Intellectual Property’, better known as ‘software’. We have no appreciable ‘Cost of Sales’ as applicable to purchases of raw materials or components.
A fortunate position to be in then is it? Just developing and occasionally managing, updating, upgrading etc., intellectual property?
No. Not really.
Why not?
Because we have virtually no suppliers to whom we can occasionally delay making payment in order to alleviate the sort of inevitable cash flow problems that effect virtually all businesses from time to time.
You pay us late or expect us to recommence your 12 month licence period from the time you make payment instead of from your earlier ‘anniversary date’ and we go bust. Simple as that. A 12 month ‘Corporate Licence’ fee is exactly that. It is not 12 months plus another month or two for late payment!
So we won’t do it. Restart the period from the date of receipt of your payment that is. Not unless you are happy to re-start a new contract and which, due to constantly rising costs and inflation if nothing else, will be offered at new and almost certainly increased cost terms.
It is a sad fact but over 90% of all software companies are bust within 18 months of start-up. The reason? Gross underestimation of the costs coupled with an unusually high business exposure to cash flow crises.
Mistral Associates have been producing and constantly maintaining the software systems it pioneered for over quarter of a century. So that looks like we might be getting one or two things right in our business!
Which is probably good for you too then isn't it?
So please pay us on time so we can keep it that way. For our mutual benefit.Mission statement:
"Bringing the benefits of computerisation to our industry - without the historically associated problems."