Hi all,
I am looking at some options as to expand my rod building and thought maybe there would be some builders suppling vendors that could answer a question I have had come to mind.

Do your vendors make advanced payments or percentage and balance on delivery type payment? I have always had the money sent to me up front and then delivered product as soon as the funds are in my account. As far as larger vendors I am sure this is customary but I haven't dealt with any large vendors as of yet.

Any help would be better then what I have to go on now.



Tight wraps and lines,
Wylie

Are you talking about builders who sell rods to resellers? Most custom builders are pretty small operators and I'd think they would have a hard time offering the fairly standard 30, 60 and even 90 day terms that the major jobbers usually offer to retailers.

I can tell you this - once you start dealing with the larger retailers, say somebody like Cabelas, they're not going to pay you up front. They will dictate the terms to you and you'll have to decide if you can live with them.

.......

Thanks for the reply Tom,
I had a feeling most of the builders here are doing business just as I have with money up front payments but on the off chance a few were going out to retailers I thought I would ask.

I have talked to some people about Cabela's and from what I understand they do have there own policies about shipping and many other things that have to be adhered to in order to do business through them.

I was mainly interested in more of the smaller mom and pop shops out there that some rod builder may cater to.




Tight wraps and lines,
Wylie

Wylie,

This is totally a negotiated issue. At the end of the day it comes down to how badly do you wish to do business with somone and how much can you trust them. The only time I have ever heard of Retailers ever paying up front is when they are first starting out and are trying to get vendors to supply them. In the UK you would be lucky to lever 30 days sure plenty agree to that but few if any pay to thoses terms. As always in business it's a question of where the power is. But if you don't like it you don't have to go there.

I always think that payment term discussions give a pretty good insite into the type of business you potentially could be dealing with and vice versa.

Mike O.

That sure sounds right Mike,
Most of the construction companies I have worked with in the past had to wait 90 days most of time and them the GCs would often over run the 90 days on the big jods just to earn the extra interest the money would get them at the bank.
I guess agreements have to be written and signed by both parties before shipment will ever be made from me. Retailers do have it tough starting out as I have seen them when I was a rep and the same holds true for the small time manufacturer as well.
At this point a would think the power is in the paperwork, Thanks Mike.



Tight wraps and lines,
Wylie