The Impact of Sales Acceptance Policies
Every dollar seems incredibly valuable to every business, but not every dollar has equal value. The easiest sale to make is one that typically fits into one of these three situations:
- This could be intentional by applying a discount for either strategic reasons or because the sales skills of the individual making the sale are weak. Improving a weak sales effort is a completely different article.
- High Risk. The price might have been fair, but the credit terms or the customer may be less than ideal which endangers payment or could possibly lead to dealing with a very difficult customer.
- The person bringing in the sale feels intense pressure to bring in work, so they sell something at any price just to look like they are contributing.
A sales acceptance policy is an internal process that reduces the addition of customers that erode performance and/or consume excessive amounts of support. The policy can be complex and formal or simply an internal conversation with a peer if you are in a leadership role or with your Manager.
Five simple questions can reduce the potential to add customers who may decrease the value of the company:
- Is the price discounted? If so, why?
- Has the potential customer been difficult to deal with so far?
- Do you really understand the true profit contribution as a result of this sale?
- Does this customer fit the profile of the type of client you are trying to add?
- Is there additional potential revenue, referrals, repeat purchases, etc. tied to this sale?
If not, it has a high probability of being one of the underpriced, high risk or desperation sales.——————- Disclaimer: The information contained in this Blog (the “Blog”) is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. In no event will BB or its partners, employees or agents, be liable to you or anyone else for any decision made or action taken in reliance on the information in this Blog or for any consequential, special or similar damages, even if advised of the possibility of such damages.