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howierocket said:
So how often do you guys selling shirts now to stores run into places that demand Net-30? Also what do places normally pay with? Credit card? Check?
to be honest with you, NET-30 is not as popular as in the past (before the Bank Credit Line Era took OFF).

These days banks offer credit lines to all new and existing buisnesses and small/Med size companies use Credit Cards often.

I think if an order is under $ 1000, may be get paid rigth away. For larger orders or regular established clients, than payment terms are more justified.

But of course this is not written in stone. Just my thoughts. :)
 

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Ugg I worked with creditcards at my last job.... the credit card companies screw you so hard. I don't know if my last boss got a really raw deal but he was paying 2-5% for taking cards. It was awful. He even got upcharged when he didn't have the card in hand. Credit card terms for the small business SUCK.

Yeah, I am one of those lucky ones who didn't get a credit line from the bank, everyone else I talk to got 20k without even being in business for more than a afew weeks. The only reason I am with my bank is the manager is a good friend and pulls a lot of strings for me. The credit though....arg I wish I could get that.
 

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howierocket said:
Credit card terms for the small business SUCK.

Yeah, I am one of those lucky ones who didn't get a credit line from the bank, everyone else I talk to got 20k without even being in business for more than a afew weeks. The only reason I am with my bank is the manager is a good friend and pulls a lot of strings for me. The credit though....arg I wish I could get that.
i was not talking about you the seller, i was talking about the buyers. They have credit lines and its convenient for them to use credit cards when they pay their credit card bills within 30 days there should be not interest charge as well.

Why should you the small buisness finance your buyers purchases ? thats why credit lines and business credit cards have boomed in popularity in recent years. :)
 

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I don't know if my last boss got a really raw deal but he was paying 2-5% for taking cards. It was awful. He even got upcharged when he didn't have the card in hand. Credit card terms for the small business SUCK
I think the increase in order volume and making it super easy for customers to pay you more than make up for the percentage that merchant accounts charge.

Without accepting credit cards, you'll have a hard time making sales on the web (or in offline retail).

Also what do places normally pay with? Credit card? Check?
Some have paid with credit card up front, some prefer to pay by company check and those I usually give net 15.

If you run into a megastore that wants thousands of shirts, you may need to be a bit flexible :)
 

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Comin'OutSwingin said:
I think he means if the buyer uses a credit card instead of net30, then as the seller, you are stuck paying fees for accepting credit cards, which is true.

Although fees in the 5% range are quite high!
duh, i see. Thanks Greg.

mind you that most sellers include/account ALL their operating costs into the selling price.
Since CC's are used often i would think of it as an operating cost expense or at least an Inventory expense Discount/deduction off the TOP of your gross sales on your Income Statement.

does that make sense ? :)
 

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Lucy,

Yeah, it just sucks that it even has to be figured into operating costs. I feel [bad] every time I go into a small mom and pop and forget cash and have to use a credit card. I know they are getting screwed....Oh well. I just have to find a company that doesnt charge outragious fees.....we will see how these companies are to deal with.....oh and if i did have a 1000 shirt order....i would be very flexable.
 

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we offer 5% OFF when people pre-pay by personal/company check or money order.
Be careful with this though. Many merchant accounts have in their terms of service that you can't offer discounts for cash purchases or incentives or "fees" to the customer to cover the credit card charges.

Everything has a service fee. Whether it's the light bill for the mom and pop or the phone bill (or even the monthly business checking account fee). All are required to do business. The merchant account fee should be viewed as no different. In my view, it actually HELPS the mom and pop get MORE business than they would if they only accepted cash/checks.
 

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Rodney said:
Be careful with this though. Many merchant accounts have in their terms of service that you can't offer discounts for cash purchases or incentives or "fees" to the customer to cover the credit card charges.
in this case, go with one that does not.

it is the norm to give discounts (about 5%) on COD and on the Spot payment, wholesale anyways. And some even charge you the CC fee % above the sale total. Go figure.
 

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T-BOT said:
in this case, go with one that does not.

it is the norm to give discounts (about 5%) on COD and on the Spot payment, wholesale anyways. And some even charge you the CC fee % above the sale total. Go figure.
You're right :)

I think the key is to make sure you aren't charging a "surcharge" for credit card transactions and to make it clear that the cash discount is a discount from the standard price.

Rules for Visa Merchants said:
Always treat Visa transactions like any other transaction; that is, you may not impose any surcharge on a Visa transaction. You may, however, offer a discount for cash transactions, provided that the offer is clearly disclosed to customers and the cash price is presented as a discount from the standard price charged for all other forms of payments
 
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