detectivegibbles

Sales Director

Acclaimed Answer

How would you approach?

Backstory: I work in medical capital equipment space. Met a consultant, she was working with a doc opening her first private practice.

Sent her a great quote and piece of equipment. They needed help financing equipment so made a referral to lending partner.

We close deal. I think everything's gravy.

Fast forward to yesterday, I get pinged from my accounting team. Yay for tax season....come to find out we never collected sales tax on this deal. My project manager forgot to send the separate invoice for sales tax ($5,800) and it wasn't collected by the financing company.

The consultant, on behalf of the actual customer, is saying WE should write off the sales tax solely because of the unsent initial invoice.

Have a call with consultant in a few minutes....how would you approach?

I'm basically detaching. "Hey consultant, I understand no one likes getting hit with an invoice that isn't expected. However, the contract specifically states the buyer is responsible for any applicable sales tax. The doctor is more than welcome to pay the state directly. Or, they can pay us and we can pay on her half. Like any goods purchased, there is sales tax."

11

18 comments

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poweredbycaffeine

WR Lieutenant

4

☕️

Your approach is my approach. You’re the messenger, and they ultimately are on the hook for ensuring the customer pays their bills and all associated costs.

detectivegibbles

Politicker

2

Sales Director

We’re totally falling on the sword that we should have sent the invoice. But this isn’t a situation where we didn’t provide services that were contracted, provided different equipment, etc.

A different perspective….we essentially carried $5800 interest free for the customer for 7 months.

jefe

Arsonist

3

🍁

All of this is solid and exactly how it should be done. Nobody escapes the taxman, even if there was an issue with some paperwork.

poweredbycaffeine

WR Lieutenant

3

☕️

No one forgets about taxes, they just ignore the problem until it goes away.

jefe

Arsonist

4

🍁

Too true. I'm sure she was aware and thinking she got aware with murder.

Justatitle

Big Shot

3

Account Executive

I think that you mostly have the correct approach. Leading with an empathetic approach is the right way to go, the only advice I would offer is to approach it and say "I hate paying taxes as much if not more than the next person, there's no way to avoid this. I realize it's a surprise, the initial discount was done to lower the cost of sales tax as well." FWIW the consultant is likely posturing for the doctor to make her look good

detectivegibbles

Politicker

2

Sales Director

Good point.
The consultant could hypothetically bring more biz in the future. She was a bit hard to deal with however.

Justatitle

Big Shot

2

Account Executive

easy to deal with or hard just make sure the checks cash and I do not care

detectivegibbles

Politicker

2

Sales Director

Reasonability goes a long way with me. I understand I'm not perfect, neither is the customer.

Pachacuti

Politicker

2

They call me Daddy, Sales Daddy

I think your approach is right. No one likes to pay taxes, but we do.

If you feel bad about it, maybe send a restaurant gift card or something to soften the blow.

detectivegibbles

Politicker

2

Sales Director

Everyone loves free food.

TennisandSales

Politicker

2

Head Of Sales

yeah you are totally on the right path. Allow them to be frustrated, hear them out, acknowledge that the team dropped the ball and didnt send the invoice but also double down on the fact that they need to pay.

In my expereince, doing this allows them to vent, feel heard but also respect you for not just giving in to what ever they ask. good chance they DO understand they need to pay the sales tax.

detectivegibbles

Politicker

2

Sales Director

100%. You immediately set precedent to be taken advantage of in the future by giving concessions beyond reasonable means.

Have to stand firm here!

LambyCorn

Arsonist

2

A mfkn E

Tell them to not shoot the messenger lol

CuriousFox

WR Officer

2

🦊

Your approach is the best before you have to give it over to legal.

HVACexpert

Politicker

1

sales engineer

You’re on the right path, be empathetic. In the end if it’s not a tax free entity they know it’s coming.

All you can do is communicate it and be apologetic for the inconvenience.

Gasty

Notable Contributor

1

War Room Community Manager

Perfect approach, what else can you even do?

I agree with Jefe, they must be aware of it only and thinking they got away or something.
Best of luck!

detectivegibbles

Politicker

0

Sales Director

Great responses from all, thanks again War Room.
Had the call this morning. It went super well with the consultant. We're working out some different options in terms of us paying the taxes and the doc paying us in installments over next few months. Win win for everyone.

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