PPB July 2018

by Terry Ramsay Q A DISTRIBUTOR ASKS: As a small distributor, what are my options for specifying payment terms and making sure I get paid on time? I don’t want to be in the business of financing my customers, but demanding cash or a credit card up front doesn’t always seem reasonable. A As a small independent distributor myself, I am advising you peer-to- peer. First, change your mindset— you’re not “demanding” cash or credit card, you’re simply requesting a deposit for the order. My terms of agreement are included with each quote and specify a 50-percent deposit at the time the order is placed with the remaining balance due within 10 days of receipt of the order, so customers understand up front what is expected. Once the customer selects their products, I generate the invoice and the customer remits a deposit via online payment. After the deposit is received, I begin the order. There’s nothing unreasonable about that request. When customers place orders online with the big dot-com companies, payment is made in full at the time order is placed, no questions asked. Second, understand your audience. If you’re building a book of business with corporate giants, then it’s not likely you will receive a deposit, and you may have to wait 30, 60 and sometimes 90 days to get paid. I choose to work with local mid-sized businesses where I set the terms of how I get paid. As the saying goes, we teach others how we want to be treated. So, teach your customers that you’re a creative promotional marketer and not a loan officer. Collecting deposits will keep you from having cash flow issues. CAROL C. WEATHERSBEE Principal TC BEE, Inc. PPAI 666528 Get Paid On Your Terms 12 | JULY 2018 | INNOVATE