[BC] Sales practices

[Cowboy]

On Wednesday 18 February 2009 12:12 pm, Barry Mishkind wrote:
>  There has been some "chat" about Anheiser-Busch's new "policy" of 
>  paying in 120 (or more) days.
>  
>  Other advertisers are *taking* discounts after negotiating spot rates.
>  
>  I do recall turning down an owner who wanted to pay for emergency 
>  engineering time "like the agencies do - 120 days."

 How about responding to an emergency "like the agencies do - 120 days." ?

>  So, let me ask those of you in sales: is this Anheiser-Busch deal 
>  new, or is it business as usual?

 For some, it's business as usual.
 It only happens if we, the merchants and providers, allow it to happen.
 Imagine telling Al Capone "I'll pay for your illegal booze in 120 days." ?

>  And ... how do you/(can you) deal with it?

 For my clients, I ding them with a 10% late penalty after 30 days.
 It's not usury.
 It's not a loan !
 ( though it's been suggested, and I may, that I simply mark up
 the whole thing 10% and offer a 10% discount for paying on time,
 just because it sounds nicer )

 The situation you cite, it *is* a loan.
 What used to be a 90 day note is/has become simply a refusal
 to pay in a timely fashion.
 For me, that almost immediately results in cash in advance ONLY.

 I will not carry a client in far better financial shape than myself
 for any period of time without some way to defer those costs.

-- 
Cowboy