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payment from wholesale buyers

updated mon 30 jun 97


Marni Turkel on fri 6 jun 97

As has been suggested before, COD is the most secure method of collecting
on a new account. A couple of qualifiers: I would add from experience. COD
checks can bounce, and the customer can stop payment on the check. Also,
keep in mind that some potentially good wholesale customers are not allowed
to use COD. Gift shops that are part of a larger organization are usually
not able to do COD, no matter how much they might want your work. Museum
gift shops, hospital shops (who usually have limited storage and can't make
minimums either), gift shops associated with art guilds, etc.can be good
customers, but cannot do COD.

Pro forma (payment in advance) can work, but I try to avoid it now. If I
pack the order and then call with the total (which includes shipping), I
can be stepping over the boxes for several weeks before the customer gets
around to sending the check. I used to get a deposit for the pots and bill
for shipping, but found that people who would have paid the whole amount
net 30, would let the shipping charges slide. Getting 50% before shipping
and 50% plus shipping net 30 works ok.

My personal experience: if someone says regretfully, " Sorry, we can't do
COD." and is prepared to walk away, they are probably OK and I will acctept
a net 30 order. If they argue, and insist they always do net 30, and try to
talk you into doing it, there is a 90% chance it will take atleast 60 days
and 4 phone calls to get your money.

Stay away from really big customers (department stores), and get a deposit
on any orders that seem like a dream come true.

Marni Turkel
Stony Point Ceramic Design
Santa Rosa, California