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Managing deductions.(reducing customer deductions)
Business Credit
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February 01, 2002 |
Atkinson, William |
COPYRIGHT 2002 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright
There's no question that deductions are a pain--for all involved. Not only do they take additional time and resources to process and resolve, but they also cost your company money. In addition, deductions are "dissatisfaction costs," meaning that they ultimately have a negative impact on customer service and customer relationships.
The first step to addressing deductions is to calculate what they are costing your company. This step can really open your eyes to just how much you are losing. Then, getting your arms around deductions involves a three-step process: reduce new deductions, manage current deductions and reduce old deductions.
Reduce New ...
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Source: HighBeam Research, Managing deductions.(reducing customer deductions)