Posts Tagged ‘clients’

Do Terms and Conditions Reallly Matter if No-one Ever Reads Them?

Thursday, November 5th, 2009

“No-one ever looks at our Terms and Conditions”

This is what a new client told me recently – when both the Managing and Sales Directors confessed to never having read their own company’s terms and conditions of sale. So, the question is: ‘Do Terms and Conditions really matter if no-one ever reads them?’

If there should be an area of dispute between you and one of your customers, your terms and conditions – provided they apply to the transaction at hand – will be the rule book by which any misunderstandings can be resolved and your business relationship preserved.

Unfortunately, for some organisations, this is the first time they take any real interest in them.

The problem with this approach, is that it equates to buying an insurance policy in a sealed envelope – without having any idea of the cover it provides – and only looking at it in the event that you need to make a claim. By then, if the policy does not cover the circumstances of your claim, it will not protect you. The same applies to your terms and conditions.

So, even if you only plan to use your terms and conditions in the event of a dispute, (and anyone who has read my previous article on Using Terms and Conditions as a Sales Tool will know that they can be so much more useful than that,) you might think it wise to ensure they are carefully drafted.

Do your terms and conditions reflect your particular circumstances, and set them out in such a way that both you and your customers can refer to (and understand) them whenappropriate? If not, now might be a good time to shut the stable door before the horse has bolted.

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Using Terms and Conditions as a Sales Tool

Thursday, October 29th, 2009

Have you ever thought about using your terms and conditions as a sales tool and not just as a mechanism for dispute resolution?

A well drafted contract / terms and conditions should set out very clearly the responsibilities of both parties, and look at the PRACTICAL as well as the legal issues which may arise. In doing so, it should achieve three things which will help you in the sales process – and I will use a machinery repair contract as an example:

Firstly, your terms and conditions can prevent disputes arising by avoiding the misunderstandings which usually create them. This may be enough to disqualify some enquirers – for example, if you only offer a service after 5pm for clients within a 25 mile radius of your base, there is no point in spending a long time persuading the client how fantastic a service you provide if they are 30 miles away and want all their servicing done in the evenings.

Secondly, if they contain reasonable provisions and are written in user-friendly terminology it will demonstrate your desire to have a successful and long-term relationship with them – engendering trust and building that all important rapport. For example, by acknowledging that things don’t always go according to plan and explaining how you will deal with that situation, you can both highlight your commitment to customer service and manage expectations at the same time. An appropriate clause for our machine repairer might therefore be: ‘If the necessary spare parts are not in stock, we will use all commercially reasonable endeavours to have them delivered and installed within 24 hours’.

Thirdly, they can enhance the emotional ‘pull’ so critical in sales by reinforcing the issues of importance to the client. For example, if the machinery being maintained is in sensitive areas (e.g. a laboratory) the client may be concerned about confidentiality. So, if you can, make a positive (but not onerous) statement such as: ‘We warrant that all our repair operatives have signed a contract of employment requiring them to respect the confidentiality of our clients’ information’. This will remind the client of their concern, reassure them, and perhaps set you apart from your competitors!

Fourthly, if you have the contact with you and are able to go through it with the client, they not only know that there will be no ‘small print’ to worry about later, but you do not lose the momentum by having to send out the contract later – when they have had chance to change their minds!

Many contracts / terms and conditions are full to the brim of the type of clauses used to defend your business in the event of a complaint, and are regarded as a ‘weapon’ to be removed from the filing cabinet only in the event of such a situation arising. I would strongly argue that by then, the client is lost – not just for this deal, but for all future ones – and that as bad news travels fast, other (potential) clients may not be far behind.

In contrast, I always advise my clients to see their legal documentation as a part of their sales pitch – and to have it drafted accordingly.

Do you think your terms and conditions could be improved to turn them into more of a sales promotion and client retention tool than a blunt instrument?

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