John k studio / shutterstock.com compiled by Danielle Renda As A Distributor, How Should I Handle Surcharges? With many suppliers now imposing a fee on credit card payments, how are distributors handling this added cost with their clients? Q A Distributor Asks: Many suppliers now implement a surcharge when using a credit card to pay for purchases. Some of them don’t allow any other type of payment for new clients. What are distributors doing with their clients? If distributors are charging a fee, do they lose the sale or the customer? Or must the gross percentage be increased to cover the expense of the credit card processing? The quickest way for a supplier to lose our business is if they charge a card fee. It’s not my fault if they aren’t good negotiators and are incurring high processing rates. We apply the same thinking to our customers and absorb the fees as a cost of doing business. It’s not their fault that we like the convenience of being paid sooner rather than later, nor is it their fault if our business is not getting the best rate possible. These high-priced fees are a sign that somebody is or has fallen asleep at the wheel. CHRIS POLLAN President and Owner Pollan Promos Starkville, Mississippi PPAI 276409, D2 I only pay by credit card to a new supplier once. If I haven’t got terms set up by the time the second order is placed, I’ll pay it again but insist on setting up net 30 for order No. 3. I do not charge any fee for clients using their cards although I do request a check or get them set up on terms withme as soon as possible. But sometimes they have to use a card based on their departmental rules, so it’s just the cost of doing business. SCOTT CAPPEL, MAS President and Founder Sorrento Mesa Promo San Diego PPAI 609965, D1 I usually absorb the fee on both ends. About half of my suppliers charge a fee if they use a credit card. I get points, which probably don’t wash totally, but it helps. If it is a larger amount, over $1,000, it is as cheap to overnight a check, which I do sometimes, especially if the order is timely. If the supplier doesn’t charge a fee I make a nice bonus withmy points for paying with a credit card. As for clients, almost all my business is a credit card. If it is over $1,000, I’ll try to get a check, but even on a $4,000 order, the fee is worth it to havemymoney now rather than have to chase someone down for payment later. JOHN BAGWELL, CAS President Bagwell Marketing Dallas PPAI 336431, D2 I have always absorbed the fee. It’s part of the overhead cost of business. I do try to avoid suppliers that charge the fee. Sometimes I’ll add $5 to the set up or a few dollars to the shipping to cover some of that cost. Do the online companies charge a fee? They aremy competition. HELEN GOLDMAN Owner Primo Promos, LLC Phoenix PPAI 284438, D2 24 | MARCH 2022 | INNOVATE
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