Working Out Problems Before They Arise
"In credit, as in sales, it's very important to know your customer and their business. I've found that a personal visit to a customer's business location before there is any trouble helps pave the way for working out problems if and when they should arise. "When calling on a customer, I always make it a point to go with our company's sales representative so that the customer does not feel intimidated by talking only with the credit manager. This seems to make them more relaxed and amenable to discussing their business.
"When on a visit I make sure to discuss both the financial side of the business (which often gives me information about the principals' 'handle' on this side of their company), and also the operations side: Does the customer have enough inventory for sales demand? Do they have too much inventory? Are their needs being met by my company? What are their long-term plans? "Knowing this and other important information is vital to my creating an effective plan of dealing with the customer, whether they are a small mom-and-pop operation or a large multi-million dollar a year corporation. "So even though the cost of taking these trips can be high in time and money, the benefits of truly knowing the customer's operation can't be exaggerated and should be part of every credit evaluation." Lawrence F. Portwood
Corporate Credit Manager
Smiland Paint Company
Los Angeles, California ============================ The Cost of Doing Business "In these times of heavy corporate emphasis on controlling costs and using time effectively, we tend to handle customer visits on a management-by-exception basis. "If an account becomes problematic to the extent that a face-to-face meeting would help us reach a resolution,we treat the travel and other expenses involved as part of the cost of doing business. "When we do visit customers we do incorporate an element of public relations, and we make sure that we have our proverbial 'ducks in a row' regarding adequate back-up documentation to corroborate our position. "We also always endeavor to be first class in our presentations so that a win-win situation is created, and the customer is left with a favorable impression of our company." Robert E. Jopson
Regional Credit Manager
Total Petroleum, Inc.============================ The Personal Touch "Face-to-face meetings with customers are more than fact-finding missions. They also add the personal touch--something that time pressures and expense have begun to eliminate. And it's the personal touch that is so basic for developing a strong foundation for a successful business venture. "Customers demand and deserve to be treated as individuals. The sound working relationships that result from this kind of treatment outweigh the costs. Extending oneself is a small price to pay for a continued business relationship. "Every company should strive to become the business equivalent of a championship team. Without good fundamentals based on the personal touch, you'll never reach the pinnacle."
Skip Behney
Regional Credit Manager
Petroleum Heat and Power
D.J. Witman Company Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by Credit Today in 2006. This article originally appeared prior to 2000.
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