Increasingly it seems, everything is done last minute. People tend to treat deadlines as though they were a “suggestion” and not the last date for making a payment, a purchase, or filling out an application. Some businesses choose to just let all this last minute business slide and make accommodations, while others are finding that it is necessary and reasonable to charge fee for things that come in late.
You may notice that if you attend a conference or purchase tickets to something, there is often a “price break” if you order or apply early. Of course, this is to encourage early purchases instead of everyone waiting until the last minute. If you are in an industry where you rely on deadlines, order dates, and due dates, you might consider structuring your pricing to encourage more regular cash flow. At the same token, making the pricing higher the closer you get to a due date or deadline, or adding a fee or charge for those who miss the deadline may help prevent all that last-minute business.
This prevention of the last-minute and late rush can be both good and bad. If you are in an industry where the last minute is the norm, or your market demographic tends to wait until the very end to make a purchase decision, you may be cutting yourself off from some sales. However, if late fees and surcharges are the norm, you may be able to train your customers to make purchases, orders, etc. on time and NOT wait until the very last minute or after a deadline has passed.
If you are going to make changes to your pricing and fee structure, make sure you give people plenty of time to get used to it and notify them of the pending changes or charges. This will help to prevent bad public relations and keep a customer from coming back angrily and saying that “she didn’t know” about the late fee or pricing structure change.
Also: Do You Know the Competitor’s Prices?