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I'd like to make a "policy" type recommendation to you. These are things you can implement on an ongoing basis, that have a permanent, positive impact on
the way you do business.
If you implement this policy in your business, you can often increase your average sale immediately.
You know there's nothing worse than getting an order for 1,000 units of something and ending up receiving and only being able to bill 950. That's 50 items you are no longer getting paid on! And often, a client will order a specific number of something, only to be disappointed if that amount is not delivered.
By establishing a "No Underruns" policy with every manufacturer you deal with, you virtually guarantee that this won't happen, and you'll often end up with a larger commissionable order.
Of course if you adopt this policy, you must be absolutely clear with your clients about the potential for overruns.
When I first started in this business, I thought that overruns and underruns just happened because manufacturers didn't know when to turn their machines
off! It was literally years before I learned that most jobs are intentionally overrun, so that quality control can pick out the bad pieces and still deliver a
complete order. That's why the quantities varied. Of course, finding that out made it a lot easier to explain it to my clients! And when I did that up front,
I found that they really appreciated it, because no one else had ever bothered to educate them about overruns and underruns.
When you arm your clients with that information up front, you'll find that they are much more accepting of overruns. And if they do happen to be dead set
against them, you'll know it before you place the order so that you can instruct the manufacturer accordingly.
Incidentally, this is a practice that can be implemented on a company-wide basis or an individual order basis.
Even independent sales reps who have no contact at all with the manufacturer or supplier can still mark your orders "No underruns" when you submit them.
Please note, a "no underruns" policy increases the likelihood of overruns. This is beneficial to you, since you are likely paid commission based on what is
sold. It is better to be paid on an overrun of 1,050 than an underrun of 950. The potential swing of 100 pieces represents 10% of the total order, so this one
recommendation alone will likely save you up to five percent or so in lost commissions, and potentially make you another five to ten percent on sales you are
already making. Do the math and you'll find that this strategy by itself can add an average of 5% to 10% to your bottom line this year!
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