Emptiest. Threat. Ever.

[Dips]

Mark got a letter from one of our resellers. This happens to be one we call a "casual" reseller. These guys make money by bidding on government/school contracts. They only call us to order when the software we manufacture is mentioned by brand name on the bid. Trust me, that's important.

Now I will summarize the main points of the letter:

1. Due to the lull in the economy, the reseller's costs have gone up. Also the reseller's customers are taking longer to pay.

2. Reseller noticed that their account with us is on a prepay basis.

3. In order to "share the burden" [a direct quote], they now expect all their suppliers to extend net-30 terms to them.

4. If a supplier does not extend net-30 terms to them, then they expect to get a 1.5% discount for having to prepay.

Mark got quite a chuckle out of this. He even felt it worth his time to call them up and talk to them. Mostly for his own amusement.

So he called and got through to a purchaser. Mark politely explained that we were not going to extend either net-30 terms or a discount to them. The purchaser told Mark that he'd have take us off their supplier list if we didn't comply.

Mark told him that was fine and thanked him.

Remember my mention that this reseller only calls us when they win a bid which lists the product we make by brand name?

They just threatened to boycott the sole manufacturer of that name brand product.

[crazylegs]

They just threatened to boycott the sole manufacturer of that name brand product.

Let me get this straight.

Say for example you manufacture a product called BluePen Systems, and you are the sole agent as well.

The caller only calls you when they win a contract for BluePen Systems.

They now say that unless you give them a discount they won't come to you for BluePen Systems.


Hmmm, can anyone say D'oh! with me?

[Aethian]

Heheheh Idiots.

[Madhatter_67_85]

Sounds like typical purchasing management. They try to get any discount they can or extend payment so they can get money rounded up or whatever their reason for holding off.

Bottom line is they need your product so they will come back hat in hand and begging. Thats when your company should tell them terms have changed and up the price that company pays for your product.

[Leopardmadcat]

Don't forget to add "IDIOT TAX" when they come back a-begging!

Morons in motion...

[Sheldonrs]

But you know darn well that when they need the product from you again, they will just assume you will give them the net-30 or the discount because they TOLD you about it before and you MUST comply because ALL their suppliers do!

Wish i were a fly on the wall when that call comes in. lol!!!

[bainsidhe]

This unfortunately sounds like standard business practice to me. Our company used to be more lenient and wouldn't get too upset if people paid a little slow. Companies also didn't used to look for these special little loopholes on ways to save money and maintain their cashflow. Thing is, the economy has been tough on everyone and just as we're telling people they need to either prepay or pay on time if they want us to produce product, more and more companies are trying to get favors or twist things around. Hey, I understand, but it's annoying as hell. It never ceases to amaze me how many buyers try to play the blackmail card and passive-agressively guilt you into complying with them. Now THAT I don't just find annoying, it downright ticks me off. Glad your boss told this guy

[Irving Patrick Freleigh]

Don't forget to add "IDIOT TAX" when they come back a-begging!

Idiot tax, a sniveling surcharge, gratuity for groveling, and the salesman gets to spank the buyer on the ass and say "Who's your vendor? Who's your vendor?"

[Spiffy McMoron]

Remember my mention that this reseller only calls us when they win a bid which lists the product we make by brand name?

They just threatened to boycott the sole manufacturer of that name brand product.

Maybe they were hoping you had forgotten you were the sole manufacturer of that product, and would cave under the threat of going to the competition?

If they did, that's FAIL. If they didn't that's EPIC FAIL!

Can you attach a memo on all of their invoices that say something to the effect of "Don't buff a person that's not bluffing?"

[One-Fang]

Dips, we know they're calling back. They have to call back. They must call back, it's in their tender.

Do keep us informed of what happened when they called back.

[draftermatt]

I get that all the time.

New customers + small job (under $10,000.00) is cash in advance, or cash on delivery (or check/money order/wire transfer). I had a guy who begged for 10 day terms, "I'll give credit references, I'm a good pay" so my boss gives him net 10.

Took them over 3 months and the threat of a lawsuit to pay up. And then we called every company they used as a reference and told them what had happened.

For notorious slow payers we'll offer a 2% discount if they pay the invoice in under 10-15 days. Sometimes 30 days depending on the type of job (I.E. a HUD job gets longer terms). And every singe company we offer the 2% discount to takes it.

Though most take it despite the fact that it's for net 15 days and they are paying on day 45.

The owner is now so tired of getting shafted that he's planning on filing liens against anyone that owes us money almost as soon as the roof goes on the building.

[It shouldn't]

Hahaha!

We had a company that sent us a letter asking for a 'voluntary' 10% discount on all their invoices and in the last paragraph of the letter informed us that they are now extending their payment terms to net 45.

Uhmm... NO!

Boss: "Close their account and make them COD."

[Imogene]

"Don't buff a person that's not bluffing?"

Yeah, that just makes the Thieves harder to hit... giving them speed buffs... what the hell were you thinking?

[Leopardmadcat]

My Father was/is a general contractor/carpenter/concrete mason. I helped him on a rush job for a new clothing store opening in a downtown shopping mall. (Not a strip mall, but one of those 'prestiges' malls, 7 story's tall.)

These 2 'dudes' who were opening the store dithered around for 3 weeks before finally giving us the nod to commence work... one week before their planned opening! Anyhow after a week of midnight shifts we got the store finished just before opening.

Contract was for 15% down, rest on completion. These assholes of course keep coming up with excuses no to pay. Finally one of them says "We'll pay you when we are good and ready, it's not like you can repossess the shelves!"

Guess they never read their lease agreement with the mall... Dad puts a lean on the store, and faxes a copy of same to the mall management. The store was closed within the hour!

They paid the next day, plus the 5% interest...

[One-Fang]

Hahah, brilliant!

Though, repossessing the shelves would've been fun too.