Down Payments
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If there is any discount in play, it's 100% down. Even if I knock $5 off a setup fee, I tell them it's 100% up front.
If no discounts, 50% down and 50% on pickup/shipping.
If no discounts, 50% down and 50% on pickup/shipping.
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I send out an invoice and stipulate payment must be made by Xpm on y/y/y date for the price to be accurate and the turnaround to be approved.
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389 Posts
Great info. Thank you very much. I was thinking about breaks for returning customers as well...
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We give every customer a "gift card" rebate that expires in 30 days.
If they buy $500 worth of items, I'll give them a $50 gift card good in 30 days. If they buy $1500, I give them a $150 gift card. Must be used in full or the balance is lost. Pretty easy to get them back.
If they buy $500 worth of items, I'll give them a $50 gift card good in 30 days. If they buy $1500, I give them a $150 gift card. Must be used in full or the balance is lost. Pretty easy to get them back.
Depending on who the customers is, I try to get 50% or 100%.......But if it becomes an issue, I generally take the order and invoice upon delivery.....This gives me an advantage over some of my competition who have cash in their beer bottles to finance even small orders....
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Agreed. Being able to offer NET0 is a huge benefit. I have a few clients on NET30 that we get because of it, even though we're more expensive than most of our competitors in our market.
Risky, but worth getting the business.
Risky, but worth getting the business.
Normally all upfront. As a small business, cash flow is key. Taking payment upfront then allows me to use that money to push the business forward. Why wait half a month before you get to do something useful with the cash?
We do offer 50% for big orders ($5k) and organizations such as schools and charity events. Big companies get 30 days, as they are slow to process payments and their accounts are valuable, (if somewhat painful to absorb for us)
We do offer 50% for big orders ($5k) and organizations such as schools and charity events. Big companies get 30 days, as they are slow to process payments and their accounts are valuable, (if somewhat painful to absorb for us)
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597 Posts
Interesting idea, Brian, I like it.
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26 Posts
50% down, everytime no excuses
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This is also how I handle almost all wholesale accounts now.
I give them retail pricing plus I give them a wholesale rebate good for 30-60 days.
Lady walks in and wants to start her "garment line". I tell her "We can do a 10/20/30 program for you."
- First order: Retail price, plus a 10% rebate good for 60 days
- Second order (in 60 days): Retail price, plus a 20% rebate good for 60 days
- Third order (in 60 days after 2nd): Retail price, plus a 30% rebate good for 60 days.
Orders after the third automatically get the wholesale price, and they can still use any remaining rebate credit for it (if in the proper time frame).
This way, people can get a savings, but I don't get screwed over by those who buy once and disappear.
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We preprinted an offset printed plastic card that is credit card sized. Then, I just attach a sticker to it with the gift card code and value!
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