I sell home products that every new home needs. I love it and all of the people I meet. The best part is that I am making money at it!
I've never needed to refuse a sale to anyone with my own business, but I have learned to trust my gut. I receive referrals from new home sales consultants, realtors, home builders, and past customers. I also receive business from my website. My logic is pretty simple with this business. Be honest, genuine, enthusiastic, and ensure that every customer is beyond merely satisfied. I'll go way above and beyond if myself or a supplier causes a delay or issue for any customer.
My sales grand totals range from $1,000 to $8,000, averaging about $2,000. I take a 50% deposit upfront, and seek the remaining balance upon installation. My gross profit margin varies from 35-50%. Usually I'm not on the hook for much money if I ever were to get stiffed the remaining balance. Obviously I'd like to limit the chances that might happen.
Most people I deal with have excellent credit and I'm a good judge of character. However, some home buyers have family sign on their home or have builder financing. My reputation is golden and 100% legitimate, but there are customers every now that make me nervous.
In fact, I have one now. I feel obligated to serve them as it was a referral. They tried really hard to place a credit card deposit, then had to make "arrangements" to get $600.00 on a check. The soon to be homeowner gave me attitude and flack about not accepting cards for the deposit, hinting towards something personal with them. Isn't that crazy? Granted, I didn't broadcast deposit details as most people buying a $250,000+ home usually don't ask for a credit card deposit. If they do, they are usually understanding of cash or check after hearing we don't take cards for deposit. I am pretty sure that they will pick my product apart to deny final payment, stiff me entirely, or give me "the checks in the mail". They just don't have disposable income it appears. I usually don't buy into fear, but I am on this one. I do have a signed quote with disclosure at the bottom about final payment upon installation.
Overview of My Process:
Lead > Quote > Deposit (50% Upfront) > Clear Funds > Order from Supplier > Arrival > Installation > Final Payment (Remaining 50%)
So here are my questions for the future:
1.) If I am given a referral, it's based on trust and relationship. If I refuse the referral I may lose future business from the referrer which is most important to me. What do I do if I'd prefer not to sell to one of the referrer's customers?
2.) Let's say that it's a lead I generated without a referrer. I could always quote really high and express a longer lead time than usual. That could earn me a negative review online or set me up for liability issues. How do I deflect a customer scenario as this?
I'm in the USA, specifically Texas. I'm very liability/lawsuit conscientious. I'm concerned that deflecting certain customers could come back as sexist, racist, homophobic, or something of that nature. Money is money to me and I do not allow personal judgements to reflect business decisions. When the red flags start going up I need to know the responsible way to pass on a perceived deadbeat customer.
I've never needed to refuse a sale to anyone with my own business, but I have learned to trust my gut. I receive referrals from new home sales consultants, realtors, home builders, and past customers. I also receive business from my website. My logic is pretty simple with this business. Be honest, genuine, enthusiastic, and ensure that every customer is beyond merely satisfied. I'll go way above and beyond if myself or a supplier causes a delay or issue for any customer.
My sales grand totals range from $1,000 to $8,000, averaging about $2,000. I take a 50% deposit upfront, and seek the remaining balance upon installation. My gross profit margin varies from 35-50%. Usually I'm not on the hook for much money if I ever were to get stiffed the remaining balance. Obviously I'd like to limit the chances that might happen.
Most people I deal with have excellent credit and I'm a good judge of character. However, some home buyers have family sign on their home or have builder financing. My reputation is golden and 100% legitimate, but there are customers every now that make me nervous.
In fact, I have one now. I feel obligated to serve them as it was a referral. They tried really hard to place a credit card deposit, then had to make "arrangements" to get $600.00 on a check. The soon to be homeowner gave me attitude and flack about not accepting cards for the deposit, hinting towards something personal with them. Isn't that crazy? Granted, I didn't broadcast deposit details as most people buying a $250,000+ home usually don't ask for a credit card deposit. If they do, they are usually understanding of cash or check after hearing we don't take cards for deposit. I am pretty sure that they will pick my product apart to deny final payment, stiff me entirely, or give me "the checks in the mail". They just don't have disposable income it appears. I usually don't buy into fear, but I am on this one. I do have a signed quote with disclosure at the bottom about final payment upon installation.
Overview of My Process:
Lead > Quote > Deposit (50% Upfront) > Clear Funds > Order from Supplier > Arrival > Installation > Final Payment (Remaining 50%)
So here are my questions for the future:
1.) If I am given a referral, it's based on trust and relationship. If I refuse the referral I may lose future business from the referrer which is most important to me. What do I do if I'd prefer not to sell to one of the referrer's customers?
2.) Let's say that it's a lead I generated without a referrer. I could always quote really high and express a longer lead time than usual. That could earn me a negative review online or set me up for liability issues. How do I deflect a customer scenario as this?
I'm in the USA, specifically Texas. I'm very liability/lawsuit conscientious. I'm concerned that deflecting certain customers could come back as sexist, racist, homophobic, or something of that nature. Money is money to me and I do not allow personal judgements to reflect business decisions. When the red flags start going up I need to know the responsible way to pass on a perceived deadbeat customer.
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