Stop Sending Customers to the Competition

Posted on Thursday, March 28, 2019

How many times have you, or your salespeople, responded to a customer request by saying, "We don't carry that item?" Or "I'm sorry, but that's not part of our service package?"

The number is critical, and if you don't know it, then you're losing profit potential. Sure, you might have stocked an extra item or two in the past in response to customer demand, but you need to get the practice down to a science.

First: Ask your sales associates to log every customer request and to question customers further to get at the heart of what they need.

Second: Calculate how much you could sell if you had those items in stock. Meeting customer demand might involve spending some money on equipment or personnel to expand your product line, but remember, if you don't take those steps you might be sending your customers to the competition.

Third: Use this checklist to track lost sales. Review it every month and you'll soon get a better grip on your customers' needs and build a stronger bottom line.

Lost Sales Report

Date of Request

Item Requested

Estimated Potential Purchase

Reason Item Was Unavailable

Potential Sales Loss ($)

Estimated Gross Profit Loss ($)

Posted in Tax Topics For Individuals, Tax And Accounting Topics For Business

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.