BusinessLetterhead - return the company bears the...

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ABC Corporation 123 First Street Jackson, MS 39021 601-555-1111 January 11, 2010 Mr. Jack Norman 580 Sunrise Highway Colorado Springs, CO 80909 Dear Mr. Norman: One of the topics reviewed at the Regional Manager’s Conference involved the handling of returned goods and the steps the sales representatives, the manager, and the headquarters personnel can take to plug this profit leak. The company is, in many cases, making an unnecessary loss on returned goods and credit adjustments. From the company viewpoint, we are losing the profit which should be derived from each sale. Too often we are not being compensated for the raw material, manufacturing, warehousing, and shipping costs actually incurred. We are sometimes able to salvage the goods returned, inspection, analysis, and reworking necessary to the material saleable. This, however, adds to the work in our factory and greatly increases our costs. Frequently, too, in the absence of instructions from the field force and a clear understanding with the account making the
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Unformatted text preview: return, the company bears the additional expense of paying the freight charges on goods returned. From your viewpoint, you lose your commission in whole or in part depending upon the amount of credit issued. Attached you will find a statement that outlines the company’s policy in the step-by-step procedure that is to be followed for each situation where goods must be returned to our factory. We are sure you can appreciate our interest in holding these returned goods situations to a minimum, and, at the same time, be very fair with our people. Frequently, materials that are returned could have been used more advantageously by our customers had we exercised a little better salesmanship and given a little better type of service. Returned goods transactions are costly to you and to the company. Let’s resolve to keep them down and try to make every sale result in a profit to you and the company. Sincerely Sam Herrington Finance Manager bmb...
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