Awards & Engraving

August '17

Issue link:

Contents of this Issue


Page 16 of 84

14 • A&E AUGUST 2017 PEOPLE BUY FROM PEOPLE by Stephen L. Capper, CRM T his article will continue our review of extending credit to our clients. As we look at who we should offer credit to and what works best for our business, I will share a story with you. This story is about extending credit and I hope it might help one of you… it cost us about $12,000. IS YOUR BUSINESS TOOL BOX FULL? PART LXV Concepts of Building Your Business for Success Section H ONE CREDIT APPROVAL DOESN'T MEAN APPROVAL FOR OTHERS One of our major accounts came in with an assistant to our office, and over a couple of years this young lady built a relationship with our people. The relationship was good for her and us. Then she announced she was getting married and would be moving to another state. After about a year, she called and wanted to know if we could do an order for one of her clients—she was selling advertising spe- cialties and had experienced what we could do and knew we could help her. The order was about $21,000 the first year, which she paid. Then she came back the second year and the order was about $25,000 and again she paid the invoice. But the third year came and the order had slipped to about $12,000; we extended credit to this lady because of the relation- ship we had with the original major client and she was paying. We never asked for a credit application from this lady, we just gave her credit based on the other rela- tionship, which was excellent… what a big mistake. It cost us about $12,000 when she went bankrupt. When you let your guard down when it comes to your credit policy, you will pay the piper. I encourage each of you to make a list of the various concerns or problems you might think you have and then set out to solve them before you need to. Extending credit to our client (the topic of the last article and this one) is just one concern you should think about, but it is a start. If we are prepared with an answer before we actually need the solution, then our business and our life will run much better.

Articles in this issue

Links on this page

view archives of Awards & Engraving - August '17