Payment Terms

Re: [spiers] Payment Terms


In a message dated 5/5/03 2:04:47 PM, carolfreire@earthlink.net writes:

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First orders: C.O.D or prepay

Reorders: credit cards or Net 30 days upon credit approval.


Few competitors offer the option 60% onto Order and 40% onto Delivery. Some

give discount (3%) if invoice is paid after 10 days.


My suppliers ask for 50% in advance and 50% on delivery, but some retail

stores I talked to (potential clients) told me they won't be willing to do

that. They prefer to pay by credit card, Net 30 or onto delivery.

***My advice would be First order credit card or prepay 50%... never offer
3/10 net 30 becuase they will pay in 30 and take the 3% anyway, and you'll
never get it back. As for COD, I will go to my grave arguing against that,
except in the instance where after haggling on the phone about payment, the
retailer says "I have the check here at teh store next to the cash register"
and I can make a note to the truck fdriver to that effect on the bill of
lading.***


I am thinking of accepting credit cards, 50% - 50% or prepaid. Will I be

losing sales from the few potential clients who want the benefit of Net 30

days?


***Yes, but we don't worry about losing a few sales at start... we worry
about thriving on what biz there is... but let me ask, is there some reason
you are avoiding net 30 terms for your customers? ***

John

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