Payment Terms

RE: [spiers] Payment Terms

Carolina,

(1) COD - Cancel the Order & Die

not really, its Cash On Delivery.


(2) Pass your terms on to your customers, you should not take risk. Take
the prepaid route. Once things get rolling and if the items sell well your
customers will definitely want more of them because they are making money.
You can set terms and conditions at that point. If they are not selling the
items then they won't be asking for more. You will establish a working
relationship with your supplier as well and they might flex on their terms.

Best of luck





-----Original Message-----
From: Carolina Freire [mailto:carolfreire@earthlink.net]
Sent: Thursday, May 01, 2003 10:05 AM
To: spiers@yahoogroups.com
Subject: [spiers] Payment Terms


I am thinking of importing some handcrafts from South America. I did the
market research and talked to some retail stores that may carry my products.
The retailers liked my products and said they were interested in buying
them. So, I have potential clients!



However, most retailers told me that when they buy from a wholesale their
first order is C.O.D. or prepaid. But after the second order they get Net 30
days upon credit approval.



Questions:

1) What is C.O.D.?

2) My suppliers ask for 50% in advance and 50% on delivery. The
suppliers are artisans and small cooperatives in South America, so that if
they don't receive a percentage in advance they don't have the money to buy
the raw materials. I want to work according to my clients needs, but I don't
want (and I can't take the risk of financing them.) I know that we importers
are insignificant, so I am afraid of losing clients if I don't offer payment
terms that match their needs. What should I do??



I would appreciate any insights and comments!



Thanks!

Carol

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