Do Your Quotations Clearly Describe Customer Acceptance and Transfer of Ownership?

October 20, 2023 Selling Comments Off on Do Your Quotations Clearly Describe Customer Acceptance and Transfer of Ownership?

Over the last few months, we’ve been writing about the communication chain from the customer through the manufacturing function. As important, if not more important, is the understanding between you and your customer of “what constitutes the customers’ acceptance of your products or services and when transfer of ownership takes place”.

We believe that it is imperative that the understanding of when the customer accepts your product or service and when they assume ownership is crucial and not one that should be verbal. During our careers we have seen many companies rely on handshakes and loosely worded quotations and as a result have got themselves burned severely. Not defining the process described above in your quotations leaves them riddled with risk.

Many think detailing what constitutes customer acceptance is: “too much work”,” might make the customer angry”, “not necessary because we’re good friends”, et cetera et cetera et cetera!! All of these kinds of opinions ignore the fact that “business is business”.

Therefore detailing, in your quotation, what your company must do and what the customer must do to constitute the customers’ acceptance and transfer of ownership is only good business.

If this is something that you’d like to discuss with us, we would love the opportunity to discuss this topic with you and develop a quotation system that can minimize your risk.