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Steps for
Establishing
Terms of Sale
(Service)
Whether you are selling directly
to consumers, on consignment, or to retail boutiques, establishing your
business’ Terms of Sale is crucial in order to protect yourself.
Unfortunately,
there are always individuals who will push the limits to take advantage
of you
unfairly. These incidents can cost you money, time, your reputation and
even
your business.Establishing terms not only protect your business, but
they
protect your customers as well. They clearly state what your customer
can
expect from you.
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Make sure your terms are published in a place where every
customer can see them, such as on invoices, on your website or on an
insert in packages.
-
Clearly state in print that by placing an order or making a
purchase the customer agrees to your Terms.
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Establish your guidelines for returns. Will there be a time
limit? Do the goods have to be in original condition? Will you require
a receipt? Will you offer cash back or credit? Will you charge a
restocking fee?
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Establish your guidelines for repairs and replacements. What
kind of guarantee do you want to back up on your products? Will you
offer repairs or replacements? Under what circumstances? Will you
charge a processing fee?
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State what your payment options are. What are the time frames to
receive payments?
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Include other relevant information such as minimum order
amounts, resale license requirements, backorder practices, etc… The
more complete your terms, the better protected you are as a business.
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ENFORCE THEM! I can not emphasize this enough.
Terms are only worthwhile if they are applied to all customers
consistently. Do not leave room in your language for interpretation.
Terms of sale should be non-negotiable requirements for doing business
with your company. If you do not plan to back-up a claim in your terms,
do not even include it in the text.
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If you discover a loophole in your terms, correct it
immediately.
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Don’t make exceptions. Once you make an exception for one
customer, even if you state you are making an exception, they will
expect it every time they place an order. They may also tell others who
will then expect that you make the same exception for them. Just don’t
go there.
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