Posts tagged Closing

Question : What’s the procedure when closing a software package deal. Is it PO > Invoice or signing of contract, or what?
We have developed a software to help companies in the region automate their business processes and expand. We have priced the license at ~$ 32,000. I’m wondering about the customary procedure of closing deals of this sort.

If clients are interested after the sales presentation, which of the following should I do:
* should I have a contract with me ready to be signed by both parties
* should I ask for the down payment check on the spot
* should I ask for a purchase order and commence the integration once purchase order is issued. If yes, can I print a purchase order for them and have them approve it to speed up the process?

I’m thinking that I should have the contract, software license agreement, and payment terms with me. If they would like to purchase the software, they should give me a purchase order or sign/stamp my purchase order, and I would give them an invoice on the spot which they should pay within 15 days either by check or a money transfer to our account. Since we have broken up the payment into three installment spread across three months, payments should be made no later than 5 days of the due date.

Does this sound right?
payment processing software

Best answer:

Answer by jerry-the-bookkeeper
Your response depends on who your prospects are. If you will be dealing with sole proprietors and general partners you should offer them a choice of down payment or sign a contract right now.

If you are dealing with a corporation it can take a committee to approve of anything and the people who have the authority to commit the corporation often don’t have anything to do with the payment process.

Your contract should have a clause stipulating that the pricing you are offering is only good for xx days. This will give the corporate types enough time to get approval, and will prevent them from coming back in the distant future and demanding the current price.

Always ask for a down payment, even when you know you can’t get it. You can say that you need the down payment to get the process underway. So ask for it.

Most companies that use Purchase Orders use their own and won’t use yours. So, if I were you, I wouldn’t bother printing Purchase Orders for prospects to sign. Instead give them contracts to sign.

I think you are being unrealistic about how quickly businesses are willing to pay for anything. You can give them invoices calling for payment in 15 days if you want, but don’t expect any payments until at least 30 days after the due date.

Hope this helps
Jerry-the-bookkeeper