August 28, 2019Late Payments , Wine Merchants
The Alcoholic Beverage 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 the 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.
Need an extra hand?
Chasing payment and organising your invoices is a real time consuming task.
However, we have a solution that can save you hours of your time and get money flowing back in your pocket.
Beverage suppliers and distributors who are currently using our platform, Pencil, see a massive 80% of invoices paid within the first 5 business days.
On top of this, the average business saves 10-12 hours a week by having Pencil manage everything from payment reminders, debtor management, online credit application forms and much more.
We automate the process for you and have all your debtors stored in one easy-to-manage platform. Businesses should be able to focus on what they do best and not be held back by chasing payments.
If you’re interested in getting your invoices paid on time click the button below for a 30 day free trial of pencil!