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Dear Mr. Dowsaki:
I’m writing to express concern over the rapidly changing marketplace. In my opinion, we are becoming noncompetitive because of inflexible policies regarding our credit terms. Recently we lost a $210,000 sale to BloGar, Inc. because our credit terms (30 percent down payment) were not competitive with those of Whitley Associates.
I strongly believe in Universal’s products, prices, policies, and people, but I think we must be more flexible in dealing with the customer.
May I make some specific suggestions to this end? I suggest that Universal:
• Review its credit policies in light of the terms now offered by our competition
• Communicate to its salespeople the reasons behind our credit policies so they may present them to the customer more effectively
• Assign a person at the local level who can authorize changes to policies in “exceptional” situations
I’ve attached a memo to my immediate supervisor detailing the circumstances of the BloGar situation mentioned above. This memo will illustrate the difficulties and delays in getting authorized approval for special customer situations.
I think I speak for all salespeople when I say our first concern is making the sale. I hope you’ll agree the above suggestions make sense in this changing market.
Sincerely,
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