In training sales staff that goes out into the field to bid on service contracts you need to make sure that they are not giving away the store. It is easy for someone to go out and bid the service contracts lower than the competition and get all the work. Unfortunately this can leave your company in financial ruin or thrust your company into bankruptcy.
As a service company you need to understand that there are things that are very important during the sales process. Payment terms are a very important issue because even if you do all the work; if you don't get paid on time it really does not matter how much you get to do the work because you never get paid.
Additionally, you need to train your sales teams when bidding service contracts not to overbook your ability to service your clients. These sales teams need to understand your schedule, availability and your current capacity. Overselling an account to get a large commission is great for the salesperson, but if they promise more than you can deliver you will find that your company’s reputation will go down the tubes.
Your sales teams need to understand how your business works and why it works and they need to be looking out for your bottom line and bid the contract at the highest possible rate and the best terms for your company. Therefore you need to determine a sliding scale of commission based on the profitability of each account and sold. Please consider all this in 2006.
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington