enx magazine

I recently got an email asking me why I am such a staunch advocate of formal contacts. Many dealer salespeople use a portable invoice, write out the contract on the invoice form, then get the form signed.

So, why a formal contract? A sales contract details the terms of the sale. This is important because it will avoid any future disagreements about the terms of the sale. Some dealers just produce an invoice with the amount of the order and pick up a check. This method takes care of the money part of the sale but it does not cover the details. If you have problems after the sale, the problems will be found in the details. What is the payment terms if a balance remains? What is the warranty? Does it include the number of copies that can be made during warranty period (recommended)? Is installation and set-up of the equipment included? What if the machine is on the third floor of a building without an elevator? Who pays? If the machine is leased, is the deal complete if the Lease Company has not paid? If the sale involves split payments, how much down and when is the next payment due? What is the penalty if you do not receive the payments on time? How many times have you heard, "I thought the copy cartridge was included"? Is the copy cartridge included? If a machine is under warranty, are you required to service the machine on Saturday if it breaks down?

You may want to offer all of the above to the customer as part of your service, or you may want to limit the service that you are willing to offer for free. At any rate, everything should be spelled out in detail in the sales contract. I believe in furnishing a sales contract with the terms and conditions spelled out and I also believe in covering the warranty with a SERVICE CONTRACT. Yes, I issue a service contract for the warranty period. Why is it that we spell out everything in detail in the service contract and not the sales order? The simple answer to this is to issue a service contract for the warranty period. The times and days of the week that you will service the equipment is clearly stated. Your copy limits (if any) are clearly stated. Your service obligations and the obligations of the customer are clearly stated. One other great advantage is that the service contract is in the system and can be followed up prior to the end of the warranty and renewed for a full term just like any other service contract. The customer is happy to know exactly what he can expect and what is expected of him. You are happy knowing that you have all of the bases covered. It's so simple. I wonder why more dealers are not using the idea. The sample picture show a formal contract produced by Sales Power Plus.

Larry McGinnis brings over 30 years of experience to the office machine business. His Company TEC-AID markets a service department management program called ServiceTrak and a sales aid program called SalesPower Plus. Contact him via email at larry.mcginnis@verizon.net or check out his web site at www.tec-aid.com

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