The Wine Industry is at the mercy of the market. This means that when Retailers and Hospitality venues are struggling, cash becomes tight and suppliers are always last to be paid.
Wine and liquor suppliers & distributors need to observe some basic customer management rules in order to get themselves to the front of the payment queue.
1. Customer Management:
Retail & Hospitality venue owners are not accounting professionals.
They are time poor and “on the tools”, which hampers their ability to give these tasks the attention they require.
2. Suppliers Beware:
Paying bills and counting invoices is not a retailer’s core business.
Lesson? Suppliers need to make it easier for venues and shop owners to stay on track with payments by early, consistent reminders and easy ways to pay until payment is received.
The squeaky wheel gets the oil, so keep your receivables front and center for retails at all times.
3. Cut the shit:
You will know within the first 60 days of supplying a customer if they are going to cause you problems.
Manage credit terms tightly. Don’t extend further than 7-day-terms for the first two months. If customers can pay on time, every time; give them 14 or 30 days. Reward the behavior you want.
Just follow these three basic rules and your business will get paid sooner.