Agreements & Billing
A Customer Service Agreement defines the understanding between a supplier and its customer. It describes the service which the supplier will provide for the customer and also the customer’s responsibilities for receiving these services. The necessary purpose of the agreement is to protect the supplier’s investment, and also the right of the customer.
Most businesses make some profit on the first sale, but for Topper, a new account requires a financial investment in merchandise inventory because Topper purchases upfront the initial merchandise inventory, not the customer.
This merchandise investment typically consumes all the customer revenue for almost the first 7 months. When recurring costs are added, the account is being operated at a loss for the first 24months of the account.
Topper thus makes a major financial investment to a new customer even before the first delivery, simply on the promise of the customer to continue with Topper and pay for the service. This demonstrates a major commitment (and risk taken) by Topper for the customer, even before the customer’s first payment.
About Flatwork Billing
Suppliers have introduced different methods for charging for flatwork service. The fundamental challenge is to create a system that is fair to the customer, but which also allows the supplier to operate efficiently in order to offer the service to the customer at a very competitive and affordable cost.
The Topper Flatwork System
When a customer begins, he is settling a total inventory of pieces comprised of
A. The pieces on-site which customer estimates as typical usage in a week,
B. A roughly similar number of pieces which are soiled and being laundered off-site by Topper, and
C. A buffer “shelf/tables” supply to cover typical situation of unforeseen increase demand.
At times, the customer may request the inventory quantity to be increased (high usage periods) or reduced (low usage periods) to reflect demand and actual usage. The invoice will reflect any such change.