| Tips for Establishing Terms of Sale |
Whether you are selling directly to consumers or to retail boutiques and chains, it is critical to
establish business Terms of Sale in order to protect yourself.
Unfortunately, there are always individuals who will push the limits to take advantage of you unfairly.
These incidents can cost you money, your reputation and even your business depending on the
severity of the complaint.
Although establishing terms can seem callous and inflexible, it is wise because terms not only
protect your business, but they protect your customers as well. Your customers benefit because
you are better able to keep your prices down if you do not have to absorb the costs of reparations
on unjust claims. Save yourself a lot of grief by establishing terms and consistently sticking to them!
- Make sure your terms are published in a place that every customer will see such as in
your catalog, on invoices, on your website or on an insert in packages.
- State clearly in print that by placing an order or making a purchase the customer agrees
to your Terms.
- Establish your guidelines for returns. Do you want a time limit? Do the goods have to be
in original condition? Do you want to require a receipt? Will you offer cash back or credit?
Will you charge a restocking fee?
- Establish your guidelines for repairs and replacements. What kind of guarantee do you want to
back up on your products? Will you offer repairs or replacements? Under what circumstances?
Will you charge a processing fee?
- State what your payment options are. What are the consequences for late payment? Check with
your bank or merchant services account to see what they will require if you need to challenge
an unjust charge cancellation. Include these parameters in your terms. Note that having
published terms of sale is an invaluable tool when challenging these charge cancellations.
Merchant services will often reverse charge-backs if they receive a copy of your terms.
- Do not forget to include other relevant topics such as minimum order amounts, resale license
requirements, backorder practices, etc… The more complete your terms, the better protected
you are as a business.
- ENFORCE THESE TERMS! Terms are only worthwhile if they are applied to all customers consistently.
Do not leave room in your language for interpretation. Terms of sale should be non-negotiable
requirements for doing business with your company. If you do not plan to back-up a claim in
your terms, do not even include it in the text.
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