Business Negotiation October 12, 2015

The Expense Reimbursement Negotiation

You are a busy sales representative at a drug company with two major responsibilities. One is to meet with physicians in your area to provide samples and explain the effectiveness of your products, and the other is to sell those products to local distributors and drug stores. You incur considerable business expenses by having lunch or dinner with customers, supplying lunch to the doctor’s office staff, etc.

Sales department procedures stipulate that expenses be submitted for approval weekly and reimbursed by accounting every two weeks. Salespeople must, of course, maintain proper records and receipts for income tax purposes. For a busy salesperson keeping track of these myriad pieces of paper is a nightmare.

Each salesperson handles the records and receipts in their own way but are all expected to submit them weekly accompanied by a standard company expense form. Unfortunately, almost every submission for approval shows some expense receipts have been lost, other receipts are barely readable and still others show expenses in excess of acceptable limits but do list good reasons for doing so.

The result is weekly chaos, late reimbursement, constant negotiation and renegotiation between those that sell and their managers and between accounting and sales personnel. Sales morale suffers and people get angry.

The head of accounting and the sales managers are told to straighten out the mess. They got down to the business of finding a way out of the weekly chaos.

Together they assembled a team consisting of themselves and three others in the company: a representative from IT, one from systems and procedures and another well-experienced salesperson. Each member was assigned to study parts of the problem. Systems looked into the detailed work involved in maintaining records and receipts by the sales and accounting department. They found some unnecessary elements in the existing system. They determined that some expense limits had to be raised to reflect inflation and others eliminated by combining them into acceptable lump sum allowances.

The IT representative advised that a new smart phone application would be supplied to all salespeople that would be fully integrated with the company computers to track their daily expenditures. This would enable management to highlight any divergence from acceptable limits or procedures and allow them to request prompt justification or correction.

A new procedure was then created that reduced work for both the sales and accounting departments. Report quality was improved and simplified.

When people put their minds together to find a better way they find it. With that they gain respect and kinship for each other even if they have been at odds before. Conflicts and disagreements still occurred from time to time but these were resolved more easily and less acrimoniously than in the past.

THE PROGRAM WAS GREAT! MY SEMINAR LEADER AND THE STRUCTURE OF THE COURSE KEPT ME CONSTANTLY STIMULATED. I NOW AM BETTER PREPARED TO GO INTO AN IMPORTANT NEGOTIATION MEETING AND STAY IN CONTROL, WHILE FINISHING THE MEETING SATISFIED.

Deanna D.
CASE MANAGER at THE JACKSON LABORATORY

IF YOU HAVE THE TRAINING BUDGET AND TWO DAYS TO SPARE, YOU'LL STRUGGLE TO FIND A PROGRAM MORE FAR-REACHING, ON-POINT, AND INSTANTLY IMPLEMENTABLE.

Jeff G.
BUSINESS DEVELOPMENT MANAGER at THE M.K. MORSE COMPANY

EXCELLENT COURSE, BRINGS MORE CONFIDENCE IN MY ABILITY TO NEGOTIATE. I THINK THIS COURSE IS A MUST FOR ALL EMPLOYEES WHO DEAL WITH CUSTOMERS.

John S.
CHIEF ENGINEERING MANAGER at EXXONMOBIL

THIS WAS VERY EFFECTIVE WITH A STRONG FOCUS ON BOTH-WIN NEGOTIATING.

Kathleen L.
SENIOR ANALYST at BLUE CROSS/BLUE SHIELD OF MICHIGAN

THE KARRASS CLASS WAS THE SINGLE BEST TRAINING CLASS/SEMINAR I HAVE EVER ATTENDED. EVERY TIME WE DID AN EXERCISE IT TAUGHT YOU WHAT TO DO DIFFERENTLY NEXT TIME. THANKS.

Kim C.
PROCUREMENT at AMERICAN EXPRESS

THIS PROGRAM HAS GREATLY INCREASED MY CONFIDENCE AND ABILITY TO NEGOTIATE FOR MYSELF AS WELL AS MY COMPANY.

LaDonna E.
SENIOR STRATEGIC BUYER at HALLMARK

THE NEGOTIATING CLASS WAS VERY INFORMATIVE. THE INSTRUCTOR PROVIDED AN INSPIRATIONAL MESSAGE THAT CAN BE APPLIED TO EVERYDAY LIFE.

Mary S.
INTERNATIONAL SOURCING at FMC TECHNOLOGIES

WE NEGOTIATE EVERY DAY OF OUR LIVES, BOTH PERSONALLY AND PROFESSIONALLY. THIS COURSE DEFINES THE PROCESS AND PROVIDES TECHNIQUES TO ACHIEVE SUCCESSFUL RESULTS.

Phillip H.
VICE PRESIDENT at GE

PRIOR TO THIS CLASS I FELT AS THOUGH I WAS GETTING EATEN ALIVE BY INTERNAL NEGOTIATIONS WITH SALES REPS. NOW I FEEL PREPARED TO CHALLENGE WHAT THEY ARE SAYING AND BET TO THEIR REAL NEEDS.

Steve Q.
PLANNER at HONEYWELL

MANY PEOPLE FAIL TO ACHIEVE THEIR POTENTIAL BECAUSE THEY DON’T SEE THE OPPORTUNITIES TO NEGOTIATE A WIN/WIN AGREEMENT WITH THEIR COLLEAGUES. THIS CLASS IS AN EYE OPENER TO THIS DYNAMIC..

Stuart B.
CONTRACTS MANAGER at HEWLETT-PACKARD
Contact US
[email protected][email protected]+1 323 866-3800
SEMINARS
About Us
AboutDR. CHESTER KARRASSGARY KARRASSFAQGLOSSARYPRIVACY POLICYBLOG
QUICK LINKS