| Author | Message | ||
     Annabelle Intermediate Member Username: Annabelle Post Number: 75 Registered: 12-2002 |
Hi All, One of the hotels in town started ordering gift baskets,maybe once or twice a month,small baskets(between $30-$50)however they asked for net 30,because that's how their billing is set up.What do I do?I don't want to wait 30 days for such small amounts,but I don't want to lose their business either,they host a lot of conventions,weddings,etc. How can I solve this problem?Thanks. | ||
| Shirley Member Username: Shirley Post Number: 38 Registered: 02-2003 |
The hotel asked for net 30 because that's how their billing is set up, but how is your billing set up? Are you ready and willing to track down your payments if 30 days pass and you're not paid? I'm not saying that the hotel won't pay; however, the current economy is quite precarious. To me, if the gift baskets aren't high in cost and you're concerned about payments, it's appropriate to state that your billing is set up for check on arrival and credit card payments. I understand that you don't want to lose their business. It could turn out to be a terrific account, so another option could be immediate payment for the first three months and then net 15 if they've paid in a satisfactory manner. I've heard too many horror stories where net 30 turns into net 60, 90, etc. Do not be timid explaining your own terms. You may be pleasantly surprised by the results. Best wishes, Shirley http://www.GiftBasketBusiness.com/ Learn, Grow, Profit! | ||
| Jarrieta Advanced Member Username: Jarrieta Post Number: 147 Registered: 02-2003 |
I have a few hotels & corporate accounts I let do net 30 only one turned out to be a slow pay and had to put them on cc or check upon delivery. But I found out later that they were going thru some financial re-structuring. If you decide to do net 30 you may want to establish a set credit limit to see how well they pay there bills. Most corporations are set on a net 30 just a tip if you decide to do it I use to call about 5 days before the payment was due to get a status of when the check would be mailed that why you can be on top of it if it gets over the due date. Hope this will help | ||
| Flora Intermediate Member Username: Flora Post Number: 100 Registered: 02-2003 |
Annabelle, Companies like to put you on net 30 because they get to hold on to their money longer. Please know that each major officer and executive has a credit card and could give you a credit card number so you could charge it each time you deliver an order. Why should you wait for your money? How many of your vendors wait for you to pay them? My only exception to requiring up-front payment is with large corporations where I have a good relationship with the contact person who will stay on top of the accounting dept. | ||
| Pamm Senior Member Username: Pamm Post Number: 569 Registered: 02-2003 |
I'm with you Flora. Wen was the last time you stayed in a hotel...any hotel, and they said "no problem, we'll bill you later." | ||
| Annabelle Intermediate Member Username: Annabelle Post Number: 76 Registered: 12-2002 |
Thank you all so much for taking time to respond,excellent advice! | ||
| Maya_d New member Username: Maya_d Post Number: 2 Registered: 06-2005 |
Net 30 normally turns into 45 days or so. Don't do it! I ask for payment within 10 days. One company said they could do it, ordered a few baskets and then said sorry, we can only pay in 30, well 30 turned into 40 and sometimes 45. I gave them a trial period and they were always late with payment. I finally decided that it wasn't worth the hassle and told them cc payments were necessary. They don't order anymore but that's okay. I'll take one good on time corporate paying account before 3 accounts who order regularly and you have to chase down your money. |
