Credit guru Thea Dudley has spent more than 30 years in LBM credit management. Now she’s here to answer your credit and collection questions. Got a question for her mailbag? Contact Thea at theadudley@charter.net
Dear Thea,
Why are salespeople so sure they know their customers’ financial situations so much better than me? If I turn down a credit applicant or set a credit limit lower than the sales rep thinks it should be, I get a lecture on how well they know the customer or how outstandingly wonderful their credit is with our competitors. Why are my sales reps so sure I don’t know anything?
Signed, Clueless in Cleveland
Dear Clueless,
I love sales reps; they truly see the best in people. But seriously, some of those sales reps make it so hard for us credit people. Because, my dear Clueless, they want to believe. Like Dorothy on the path to Oz, they want to believe that every customer, potential or existing, is part of the golden road that leads to all their sales dreams. Credit people are always looking to see what is behind the curtain and what levers are being pulled.
Since sales is all about relationships, many salespeople get really tight with their customers. They go to as many weddings, birthdays, bar mitzvahs, crayfish boils, and wiener dog races as they can. So they truly believe they know EVERYTHING about their customer and the customer would NEVER conceal anything from them. To quote one sales rep from my history, “Dude, we are TIGHT. This guy is my brother from another mother. If he had issues, I would know.”
“Sure ya would,” thinks I. As I am listening to him, I am silently thinking how awesome it is that his belief in humanity is such that he truly believes this customer has no secrets. That said customer/buddy would want everyone to know about their sales tax liens, federal tax liens, judgments from not paying some random debt, no matter how small or insignificant.
Credit people see all sorts of odd bits on credit reports. How to handle? First and foremost, don’t embarrass the customer. And for the love of all things good and holy, don’t address it in front of the sales rep. If the “bros” weren’t tight enough to have already shared the credit faux pas then don’t put it out there.
Call the customer and ask him about it. The way that he answers will tell you if you can do business or not. If he is forthcoming, admits he knew about it and gives you the circumstances around the situation, you have something to build on. If he denies it or claims it is not his, but offers nothing except some warmed-over moose poop of an excuse with a lot of blustering but little substance, then you have your answer and direction.
If you are in-person with the sale rep present, ask for a few minutes of private conversation and address the issues in the same way. Address the issues with sensitivity, directness, and kindness. There really is no way to sugar coat some of the questions; you’re not Willy Wonka, after all. Just get to the point, avoiding any judgment or sarcasm. I have an exception to the kindness rule: child support payments. If Mr. Open Book will not pay for his own children, there is little hope he will continue to pay you or pay you at all. If this is the case, tell him to move along.
So why do salespeople think they know the customer better than you, my credit compadre? Salespeople are true believers. They keep the faith when all others have abandoned hope. To quote Julia Roberts in Notting Hill, “Sales reps go to bed with the dream of big sales, they don’t like when they wake up with the reality of credit.” Ok, I paraphrased (as in totally changed it), but you get the idea.
