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Handling Cost of Sales requests for Customer

shellig

Starting to get Involved
#1
Just read "Sales vs. Quality vs. Manufacturing - Interactions and Responsibilities" (will not let me post link-too few posts :( ) because I have a similar question/issue. When Sales makes a request for the customer that requires additional testing (on a standard product - just for that customer), how do you handle that cost internally? I want Sales to absorb the cost (partly so they do not just agree to the test without discussing cost increases to pay for the testing) but that is not really long term sustainable. We are working to have the manufacturing product cost updated due to the additional testing but have to figure out how to do it just for that customer.

We are not saying no, just trying to understand how people handle this to best effect.
 

Marc

Captain Nice
Staff member
Admin
#2
If a customer changes any requirement for a product, any change (such as additional testing) is a contract change and should go through your process review process prior to accepting the new customer requirement(s).

If a customer requires additional testing it is an additional cost to you, and it should be passed on to the customer.

An exception would be if you provide nonconforming product and additional testing is needed to prevent recurrence in which case your company would typically absorb the cost.

:2cents:
 
#3
Just read "Sales vs. Quality vs. Manufacturing - Interactions and Responsibilities" (will not let me post link-too few posts :( ) because I have a similar question/issue. When Sales makes a request for the customer that requires additional testing (on a standard product - just for that customer), how do you handle that cost internally? I want Sales to absorb the cost (partly so they do not just agree to the test without discussing cost increases to pay for the testing) but that is not really long term sustainable. We are working to have the manufacturing product cost updated due to the additional testing but have to figure out how to do it just for that customer.

We are not saying no, just trying to understand how people handle this to best effect.
Well I think it depends.

You could just charge the customer as a separate line item for the testing.
Or you could just eat the cost, depending on the customer.
 
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