3 Sure Fire Ways to Lose Money on Your Next Sales Contract
So, you’ve worked hard to get the deal done. Now all you need is to hand over the sales contract for the customer’s signature. That’s it. Sounds simple, right? But it may not be. If you’re not careful with that contract it may not be worth as much as you think it is.
Will your deal go up in smoke due to a poorly drafted or delayed contract? It happens more than you think. And here are the top three ways to see that it does:
1. Wait until the last second to ask the Legal Department to draft a contract – Many legal departments are stretched thin and working hard to keep up with the demand from the departments they serve. The less notice you give them that you will need a contract – especially at busy times like the end of a quarter – the better your chances are of not getting your contract on time.
2. Cut and Paste Last Year’s Pricing into the new contract – It happens all the time. You copy and paste terms or clauses from an old contract to create a new one. Unless you are very careful, very lucky, or a little bit of both, this is very dangerous. It’s easy to leave out important details or copy an out-of-date clause. One wrong move and the value of your contract drops.
3. File the executed contract in a filing cabinet or DMS – No problem. You can remember how many active contracts you have. You know when each of them is scheduled to renew. And, of course, you know which contracts deviate from the norm, like those that are due for fee increases based on specific clauses and negotiated milestones. No need to worry about missing out on additional revenue.
To learn how to minimize risk, maximize revenue, and free-up your legal team from spending too much time creating contracts, read our new whitepaper Sales Contract Competence: On Time and Compliant, or forward a copy to your legal department.
Photo credit: Imagined Reality