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February 4, 2021

Short Term Sales Contracts

Short Term Sales Contracts

Today, we’re talking about short term sales contracts. They are bad news for your company but potential customers will often ask for a short term contract on the premise that there’s a bigger, juicier, long term contract coming very soon.

When a customer asks for a short term contract — let’s say 3 months — you should respond with an offer for a 15 month contract. 3 months + 1 year. In exchange, you’re going to give the customer a lot of what they want — the annual price discount, you’ll allow them to pay in 2 parts — mimicking the short term contract, and even make it super easy for them to cancel after those 3 months.

BUT we want to avoid the short term contract, if at all possible. Because that means we will have to get 2 approvals in quick succession — 1 each for the short and long term contract — and that’s tough.

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Ash Rust

Ash Rust

Managing Partner, Sterling Road
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