Sales Tip: Educating customers about balances

Jim Klug emphasizes the importance of having his customers keep a balance on the truck to sustain his business, but he explains the importance of paying off a larger balance to customers as well.

Oct. 14, 2015

While Independent distributor Jim Klug does emphasize the importance of having his customers keep a balance on the truck to sustain his business, he explains the importance of paying off a larger balance to customers as well. Plus he reeducates the customer to understand the necessity in making larger payments on larger balances.

“You have to be nice about it, but at the same time you have to let (the customer) know, ‘I’m not just telling you this because I’m greedy – this is what it takes to survive in the business.’ Then I start telling them about all the guys that have gone out of business.”

Along with increased sales in recent years, his collections have been up as well. He aims to meet a seven-week term for customer payments.