Sales tip: Wise collections equal more sales

May 22, 2013
Keep track of customer paydays to ensure your own payments.

John Seybold, an independent to distributor based out of Chicopee, Mass., has a pulse on his customer's finances. Why? It helps him with collections and ironically make more sales to boot.

"Sadly, most of the population lives paycheck to paycheck," Seybold notes.

The majority of his customers use debit cards with him, which he keeps on file and charges using QuickBooks. He runs payments when the payroll at certain shops goes through, usually right on his truck via wireless internet. He will charge some customers on a Thursday afternoon, the majority on Friday morning, and others as late as Monday.

Seybold's collections tactics have one thing in common: they prevent the possibility of him ever having to directly ask for money. The logic of this is that it keeps Seybold as the "good guy" with his customers. Unless he is the first to draw payments from his customer's checking accounts, he can be stuck harassing his customers to add money to their accounts or double up their payments the next week. Some customers always avoid returning to the vendor they owe money, because they do not want to pay it back. So, by making sure he is paid first, Seybold is never the bad guy. This leads to customers increasingly using their discretionary tool spending with him as opposed to other vendors.

Wise collections practices, including keeping tabs on customer paychecks and the use of payment cards keeps business relations cordial and consistent. 

Have a sales strategy or helpful hint you'd like to share? Send your "30-second sales seminar" to [email protected], and see your suggestion featured here!

Sponsored Recommendations

In this on-demand webinar from the AMCS Group, discover how mobile access to maintenance data empowers fleets to make faster decisions, optimize scheduling, and generate real ...
Experts from 3M, John Ascheman and Todd Mathes, emphasize the importance of using digital inventory and billing tools like 3M™ RepairStack™ to document materials usage in detail...
Are you aware of the hidden costs lurking behind ignored maintenance? This eBook reveals how neglecting upkeep can inate repair bills, induce downtime, and harm reliability. ...
Are your KPIs driving real fleet improvement? Learn how to set smarter, data-driven benchmarks, track success like top-performing fleets, and apply proven strategies to optimize...