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• Sales and Service
• False Billing
• Billing for unordered goods
• Delivery
• Credit
• Promoting opportunities

Sales and Service

Providing clear information that the customer can understand avoids misunderstandings, and in turn, any subsequent conflicts that may arise.

Making things easy to buy is also an important selling strategy for your business. This covers situations where customers place orders or apply for goods and services that are not immediately available, or are to be used in the future.

The many steps in ‘processing' the order are obviously essential, but largely invisible to the customer as they occur within your business. This is why the stage of confirming the order is so important, as it gives the customer the confidence that their order will proceed as expected. Make sure you have processes for:

• taking the customer's order
• confirming what has been ordered
• confirming the order's completion.

Provide relevant and timely follow-up services to customers. This can be initiated as a request from the customer, or it can be something initiated by you where you need to send something to the customer such as confirming arrangements, providing quotes, sending information, providing progress reports or requesting clarification.

Make it clear and easy for your customers to pay. The fundamental purpose of a bill is to make it extremely clear to the customer how much needs to be paid - in such a way that the customer can understand what in fact they are paying for. Provide a billing inquiries service and bill payment options if you can - your customers will really appreciate it.

Finally, customer loyalty is one of the biggest assets a business has; fight for this loyalty - be passionate about it. Sure it's important to be product or service driven but if you focus on your customers, generally the others take care of themselves.

False Billing

False billing, or ‘blowing', has become a problem for many large and small businesses in recent years. ‘Blowing' involves a demand being made for payment of goods or services whose purchase was not authorised. If the authorisation is not in writing do not pay. False billing is an offence under fair trading laws.

Billing for unordered goods

Make sure you have an order for goods before supplying them. You risk not being paid if you send goods to a customer who has not ordered them.

People do not have to pay for goods unless:

• they decide they want the goods you have sent, or
• they have wilfully lost or damaged the goods.

You can get goods back at your own expense within:

• three months after people have received them, or
• one month after they notified you that they had received unordered goods

...whichever is the earliest.

If you don't take any action within that time, people become the legal owner of the goods unless:

• they unreasonably deny you access to reclaim the goods, or
• they knew, or should have reasonably known, that the goods were not for them; for example, the goods were sent to the wrong address.

Delivery

Keeping faith with your customers by meeting deadlines you have set will enhance your reputation.

If you have given a delivery date, do your utmost to meet it and, if there are unexpected delays, notify your clients so they are clear about the problem.

It is an offence to accept payment for goods and services that you don't intend to supply.

Make sure that you:

• have enough stock to meet your orders
• take into account any possible delays in manufacturing or distribution before you accept payment and give a delivery date.

Credit

A uniform Consumer Credit Code standardises credit practice. The code allows for flexibility in product development and allows credit providers considerable freedom in how they organise their products as long as fees and charges are explicitly disclosed.

It is important that credit providers are aware of their obligations under the Code as failure to comply can lead to heavy penalties.

Details can be obtained from the Office of Consumer and Business Affairs by telephoning (08) 8204 9777.

Promoting opportunities

There are very specific laws (for example, the Fair Trading Act 1987 and the Trade Practices Act 1974) outlining how you can promote business opportunities to the public. These laws aim to discourage fly-by-nighters who take payment for business opportunities that are not likely to succeed.

Make sure that all information you provide about profitability, risk and other aspects is accurate, particularly in regard to ventures that can be operated from home or that require work or investment of money by new recruits.

Related information

• Customer satisfaction
• Guarantees, warranties and refunds
• Consumer guarantees on services

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