PPB August 2020

compiled by Danielle Renda Cybrain / MDGRPHCS / Sakarin Sawasdinaka / Shutterstock.com Managing The Financials Of Large Orders When it comes to a larger order, how trustworthy— or cautious—should I be with payment? Q A DISTRIBUTOR ASKS: I’ve never had a large order with a client that I couldn’t handle financially. A recent large order may change that. I’m asking everyone, do you ask for 50-percent down on large orders of potentially $40,000 and up? Definitely get a deposit. They shouldn’t have any problemwith the request. ALEX LAMM Owner Corporate Concepts Jacksonville, Florida I think it depends on your client. Are they a large, reputable company? Have them fill out a credit application. Get a deposit that covers your cost. Decide whether, based on the company, if you can give terms or ask for the remainder upon delivery. BILL THOMSON Owner Leda Communications Mississauga, Ontario Full prepayment in these terms. No one ships items unless you pay for them first. If it is a scam, it will shake out. LORINDA J. MOYA Owner and Marketing Manager Lemonade Promo, powered by Proforma It does not make you look unprofessional to ask for payment. Go out and try to spend $40,000 on anything on credit and see how far you get. Personally, I’d require 50- to 60-percent down to cover costs should something happen, and the balance prior to shipment. RICH GRAHAM Owner Biggerfish Dallas, Texas PPAI 256367, D2 Aside from requesting a deposit from your client, you can also ask the supplier for terms, 50 percent now and 50 percent when the order ships or something agreeable. KIMBERLY RATCLIFF Vice President Direct Effect Inc. Lehigh Acres, Florida PPA1 485005, D1 I absolutely will not take a deposit less than the cost to cover production. Period. I also require a payment plan that is firm on the fact they don’t get the product before the balance due is paid. All of my smaller orders (a few grand or less) require 100-percent payment up front. No exceptions. I refuse to offer net30 or accept purchase orders with a promise of payment. I have not lost clients working this way. MICHAEL COHEN Vice President Emunah Graphics Huber Heights, Ohio 12 | AUGUST 2020 | INNOVATE