What would you do.

[gstk]

From time to time you get an enquiry for a product and the customer asks for a price and you perhaps do a proof and the deal is done. Then the customer, who you don't know from Adam (sorry to all the Adams out there) says they will send a purchase order and they will pay 30 days from invoice. Now if its a school or a government enquiry and they provide a purchase order thats set in stone, but a private company is a different thing you have no guarantee they will pay.

We normally politely say the first order must be paid for before delivery and then we can look into terms after the initial order. Sometimes its no problem and sometimes you never hear again from them. I take the view that although its a sale lost that is better than a sale and an amount of product going unpaid. What do you guys do?

[jennywren]

I always take a deposit and just over half of the total amount, making sure that I covered my cost of the goods, and a bit more, I know some people go on about the time you spent ect ect, but sometimes your not always the winner, but you'll sure will be a bigger loser if you've not covered the cost of the goods, and the rest barring your time. Stick to your Principles.

[John G]

Hi all,
I have a policy now that all customers pay upfront for there goods - only exceptions for me are Police, local gov/councils, they get 30 days aslong as they pay by bacs within 30 days of the date of invoice. (only if they have supplied a signed PO)

If your customers want 30 days credit, they can always pay upfront with a credit card.

[NASH]

i run a one man business so therefore i will only take FULL payment before starting any big job, as i would have to turn away any other rush jobs which i charge at a premium price thats where theres more profit

[gstk]

I always think that if i ever want anything from anyone else no one ever gives me credit!! So why should I (apart from authority work of course whihc if you have a PO they are legally bound to pay)

[logobear]

I go on my gut instincts, - and never been shat on for that. The times i have been dumped on are from long long term good customers who have historically had a month to pay, and have just folded.
Company credit cards are so much easier to get now, many years previous there was always the argument about who could sign the company cheque, and associated procrastination.....
But to demand payment upfront can sometimes be a barrier to trade, - our standard policy is payment with order, but I do permit myself and my staff to make judgements.
Notable exceptions are promotion teams, and evangelical churches, both of whome can be superb customers, but can be very transient!
Use the force !

[Renniwano]

Payment upfront for me too.. been stung once and that's enough for me..