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The Credit Today Listserv - The easiest way to connect with other Credit Executives!
Credit Today - E-mail Forums Would you like to exchange information on your most thorny credit, customer service, A/R, or collection, problems? Then you should join the: Credit Today E-mail Forum, or "ListServ" Credit Today's e-mail forum (ListServ) is another exclusive benefit for Credit Today subscribers. This ListServ is designed to help credit professionals exchange information on topics of common interest. A ListServ means that you don't have to come to the web site to ask a question or to get an answer. You just send a message to your peers on the list. And the answers come directly back to you.
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Our president tells me that is not my business to care about margins. How can I persuade him that they are important?
November 13, 2009
I could use some insights from the group. I come from a background of understanding why net profit is important, and it is natural for me to consider this when dealing with individual delinquent accounts. It doesn't drive my decision, but it is a factor I recognize. I also realize on some accounts the gross margin listed does not accurately reflect the margins because we get some manufacturing discounts based on volumes. However our president tells me that is not my business to care about margins. Over the years I have learned to avoid the subject with him as much as possible, but every once in a while I accidentally mention it in our discussion and he focuses on that one point and proceeds to go off on me. It appears the belief is if we are making the sale it must be profitable. Our company (outside my department) doesn't measure anything. We don't know how much it costs us to process an order (won't share info), or if an individual account is profitable for us. Since it is privately held, it's their right to run it whatever way they want and I try to abide by their wishes, but I can't just magically erase profitability from my thinking. (CFO seems indifferent or maybe he gave up???). Should I just never say anything about it since the attitude is it's not my business, or is there a way to approach this with someone who reacts so poorly? I guess I just don't understand this response. We can discuss most other things and work it through. I'm not sure if this is a family dynamics issue (three brothers own it & territorial) and I'm accidentally wandering into the pothole or a secrets issue or fear I might know something he doesn't. . . .
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ListServ Disclaimer and Legal Rules
This list is provided as a member service of Credit Today. Credit Today accepts no responsibility for the opinions and information posted on this site by others. Credit Today disclaims all warranties . . .
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General ListServ Instructions
To reply to a posting (or thread), you can hit your reply feature (or similar command on your e-mail manager) in which case your reply will automatically be addressed back to everyone on the . . .
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ListServ Etiquette
Include a signature tag on all messages. Include your name, affiliation, location, and e-mail address. Please include a short descriptive title in the subject field, so others c . . .
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This month's topic: Processing of Credit Applications
Click here to participate!
We're examining:
- What information is being captured on credit applications
- What additional information is being requested during the credit app process (such as personal guarantees, financial statements, resale certificates, etc.)
- What the primary challenges are relative to the processing of credit apps
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