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Sales vs. Credits - Truss Manufacturers

Sales vs. Credits - Truss Manufacturers

Sales vs. Credits - Truss Manufacturers

(OP)
I work for a large wood truss manufacturer and we are trying to reduce the amount of credits that we issue to our customers due to mistakes made on our part. Right now these credits add up to about 1% of our total sales. (These credits result from design errors, communication errors by salesmen, production errors, and trusses broken during delivery) Does anyone know of any info for what the industry norm is in this area? We want to set a realistic target for improvement, but for all I know, at 1% we may be doing pretty good.
Thanks.

RE: Sales vs. Credits - Truss Manufacturers

I'm not aware of any information on that.  I would think that the higher the volume, the larger the percentage.  Ours, I believe is around .5%.  

RE: Sales vs. Credits - Truss Manufacturers

We average .74% of every dollar shipped. We have gotten as low as .39%. I am aware of truss companies that are happy with 3%. With hard times and shrinking margins, you should expect this number to rise, and the average selling price is declining.

After all, when a builder looks for cutting costs, who is the first person they call!

RE: Sales vs. Credits - Truss Manufacturers

(OP)
Thanks for the feedback.

RE: Sales vs. Credits - Truss Manufacturers

I was wrong. We are at .74% of every $100 dollars shipped. Sorry for the mistype.

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