Sales Quote Approval Policy
I. Policy Statement
This Sales Quote Approval Policy ("Policy") is established to ensure that all sales quotes generated by the organization are in line with our strategic objectives, pricing strategies, and profitability targets. It outlines the procedures for approving sales quotes and the criteria that must be met to obtain approval.
II. Approval Hierarchy
The following table showcases the hierarchy:
Sales Representative | Sales representatives have the authority to prepare and submit sales quotes to their immediate supervisors. |
Sales Manager | Sales managers can approve quotes up to $[00,000]. |
Director Of Sales | The Director of Sales has authority to approve quotes up to $[00,000]. |
Chief Financial Officer (CFO) | Quotes exceeding $[00,000] require approval from the CFO. |
III. Thresholds
Presented below are the thresholds:
Sales representatives are authorized to approve quotes up to $[0,000] without any further approval.
Sales managers can approve quotes up to $[00,000].
Quotes exceeding $[00,000] but not exceeding $[00,000] require approval from the Director of Sales.
Quotes exceeding $[00,000] must be approved by the CFO.
IV. Exception Handling
In situations that necessitate prompt approval in order to finalize a transaction or secure a deal, the Sales Manager has the authority to cautiously approach and seek the necessary approval from the Director of Sales. This can be accomplished through means of correspondence such as a phone call or an email. However, it is imperative that the Sales Manager meticulously documents and maintains a record of the distinctive reasons that warranted such an exception.
V. Documentation
All sales quotes must include the following information:
An itemized list of products/services.
Pricing details, including discounts and special offers.
Payment terms and conditions.
Customer information, including contact details and billing address.
Any relevant contractual obligations or special terms.
VI. Review Criteria
Quotes must be reviewed and approved based on the following criteria:
Pricing should maintain a minimum profit margin of [00]%.
Discounts should not exceed [00]% of the total quote value.
Payment terms should align with company standards.
Contracts and legal requirements must be met.
VII. Escalation Process
In the event where an approval request encounters a delay or is declined at a particular level, the Sales Manager has the authority to make a progressive move by escalating the said request to the next immediate level within the organizational hierarchy. This escalation process would typically begin with the Director of Sales.
VIII. Compliance And Legal Considerations
It is a requirement that all quotations that are provided fully comply with the appropriate laws and regulations that relate to the matter at hand. Additionally, they must also strictly adhere to the code of ethics that has been set forth by our company. If for any reason there are divergences from this established policy, it's mandatory that these anomalies are promptly reported to the legal department within the company.
IX. Communication
As a Sales Representative, one significant responsibility includes the provision of information to the customer regarding the status of their quote approval. Not only this, but if there are any delays or issues that arise during the quote approval process, it is incumbent upon the Sales Manager to also maintain open lines of communication with the customer, ensuring they are fully informed and aware of any complications or hindrances that could possibly delay the approval of their quote.
X. Record-Keeping
It is a requirement that all sales quotes which have been approved, including the respective documentation related to them, should be preserved in a secure manner for a period not less than seven years. The reason behind storing this information is that it will be utilized for purposes such as auditing and analyzing the overall performance.
XI. Periodic Review
This policy will be reviewed annually by the Chief Operating Officer (COO) to ensure its continued relevance and effectiveness.
By adhering to this Sales Quote Approval Policy, our organization aims to maintain control over the sales process, achieve profitability goals, and uphold ethical and legal standards while fostering successful and consistent customer relationships.
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