JI Posted October 2, 2012 Share Posted October 2, 2012 Hello,I have very little experience with wholesale. Only a couple of accounts. One account was a spa. They told me they only did net 30 days. I delivered product with bill. After 30 days still no payment. Long story short, it took nearly 60 days and multiple phonecalls/unanswered emails. Oh, and this was a well-established and busy spa in town.Second account: Accupuncturist ordering 50 or so candles. I asked for (and received) full payment up front, with her order form. I promised delivery (in writing) within two weeks of receiving payment. (Do-able for me because of large batch runs and she ordered limited fragrances). Third account: Going tomorrow to finalize order for this family-owned garden centre. She has indicated to me that she will be ordering in the range of 400-500. She never asked about account due dates. I am meeting her Wed. Should I specify 100% payment due upon her sending me order? Or is this unreasonable? 50% now upon submitting order and 50% due at delivery? I just was so mad with my first wholesale account, chasing them down etc. $300 is not a lot to a big company but it is certainly a lot to me. Please advise.Thanks! Quote Link to comment Share on other sites More sharing options...
Guest OldGlory Posted October 2, 2012 Share Posted October 2, 2012 The way I usually handle new accounts is this: I limit the size of the orders for the first 4-6 months to very small orders, no more than 4 dozen. They pay at delivery. You could easily ask them to pay up front. For small orders it should not be an issue for them. If it's an issue, consider it a RED FLAG. After the break in period, if I have had no trouble getting payment, they love the candles, seem intent on growing their orders with me, I will up the amount the can order, again with payment at delivery.The exception for me is a large, established company. One of my wholesale accounts has 8 stores, and a busy website. They spelled out their terms and it was up to me to agree to do business or not. Their terms are NET 30. There's no chance of me not finding them within 30 days, and I was a long time customer of theirs before I considered selling to them, so I felt secure about doing business with them.This is your chance to find your feet in your business. Establish your guidelines, make a few mistakes and learn from them. You have to do what feels right for you. If that's requiring money up front, do it. You're the only person in a business deal that's watching out for you. Quote Link to comment Share on other sites More sharing options...
SliverOfWax Posted October 2, 2012 Share Posted October 2, 2012 As a small business, I would never get involved in 30 days net, yada yada. Presumably, the customer has a credit card. Let her put it on her card and make payments to them. You are not a bank in the business of making loans. Quote Link to comment Share on other sites More sharing options...
Whisper Girl Posted October 2, 2012 Share Posted October 2, 2012 I take payment at delivery if local. If the order has to ship and is large, I take payment at time of order. I was burned once and will not be burned again. A large order is wonderful - a large order that does not pay is not an order, it is a LOSS! Quote Link to comment Share on other sites More sharing options...
Noodle Posted October 2, 2012 Share Posted October 2, 2012 Payment on delivery. I have never been burned with an account and never plan to be. Quote Link to comment Share on other sites More sharing options...
SuzyK Posted October 2, 2012 Share Posted October 2, 2012 When I was a wholesale only company, I only did 100% payment upfront. Nobody ever complained. Quote Link to comment Share on other sites More sharing options...
funkymonkey66 Posted October 3, 2012 Share Posted October 3, 2012 Payment upfront for new accounts or ones you're shipping to, and for local you can do upon delivery. It's up to you but steer clear of net terms, Silver's right, they can make cc payments like the rest of us. Quote Link to comment Share on other sites More sharing options...
bells4shells Posted October 3, 2012 Share Posted October 3, 2012 I normally break up payments into two if the situation calls for it. First half before I start their order and have them pay the second half before I ship. Too risky to send product without payment to people I've never even met before. Locally may be different, but it's up to you if you want to chase people for money. I'm sure you have better things to do! Quote Link to comment Share on other sites More sharing options...
debscent Posted October 3, 2012 Share Posted October 3, 2012 Payment up front. Upon established timely payment/order would I ever consider net 30. You sell a product, not a service. Therefore, payment due NO later than on delivery. Quote Link to comment Share on other sites More sharing options...
Beth Posted October 3, 2012 Share Posted October 3, 2012 OK, someone enlighten me... what is "net 30"? Quote Link to comment Share on other sites More sharing options...
ChandlerWicks Posted October 3, 2012 Share Posted October 3, 2012 Payment to be made within 30 days. OK, someone enlighten me... what is "net 30"? Quote Link to comment Share on other sites More sharing options...
JI Posted October 3, 2012 Author Share Posted October 3, 2012 Alright, I met with client. They placed a wholesale order for $550. Yeah!! Before I even got a chance to ask for payment, they flipped out a credit card and asked if that was alright! Luckily I had my square! Quote Link to comment Share on other sites More sharing options...
SuzyK Posted October 4, 2012 Share Posted October 4, 2012 WOW!!! That is awesome! Congratulations Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.