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Posted 19 June 2007 - 06:16 PM
I remember a topic on this probably a year ago, but my fumbling understanding of the search function here has failed me again. Seems it was from someone who sold gift baskets or soap ... I can't recall who.
Anyway, nothing on my site implies I extend credit of any sort, but then I guess I don't explicitly say I won't. (On my end anyway, I don't use credit for my business, I only buy IF the money is in the bank).
I don't have anything set up for billing on whatever terms, Net10, Net30, NetWhatever (I prefer NetNOW). I don't have anything setup to maintain or track receivables. I don't have anything setup to follow up on unpaid invoices and the cost of legal help would far exceed any loss I might recover. I'm also really not in the position financially to float much for long ... I mean I'm ok w/ $60, but if I extended credit to many, I'd soon feel the sting of slow payment, and I'm not sure the additional sales would be worth that headache, stress and (my personal bane) the paperwork.
On the other hand ... it's a private school serving young kids ... if they were to become a regular or annual customer it wouldn't hurt my feelings any. Serving them well could potentially give me good exposure and translate into more sales to parents, a large part of my target audience. Maybe it's worth doing just for the potential exposure.
What do other sites typically do concerning POs? It's pretty typical for Institutions like schools to purchase via PO, isn't it? Is it possible this is the only way they are set up to make purchases?
I'll call 'em tomorrow, just thought I might get some feedback first. Thanks
Posted 19 June 2007 - 06:41 PM
For me my decision would always depend on the type and value of goods or services and how well known and established the customer. Large and well established organisations can take a while to clear invoices but they generally offer a good risk.
Posted 19 June 2007 - 09:45 PM
Posted 19 June 2007 - 09:46 PM
PO's are a pain the a**. For a $60.00 order it is barely worth it. But there is a potential for more sales. And what else are you going to do in the time it will take you to ship the order and handle the paper work.
And don't hold your breath for anyone to be able to bypass their purchase order procedures for quick payment. My advice is play it their way.
Be glad your site converted. Ship it. Next order, Please!
Posted 19 June 2007 - 10:39 PM
A $60 order is not worth chasing for debt collection, let alone going to court etc. Less than honest people know this all too well, regardless of the organization they are attached to.
Secondly, all that effort for a $60 order seems like bad business to me - that time should be spent trying win customers that pay up!
Do not do it. Pick up the phone and tell them what you want for payment. If they do not accept, let them waste someone else's time. That's my opinion and I am sticking to it!
Posted 19 June 2007 - 11:05 PM
Posted 19 June 2007 - 11:12 PM
That's my 2 cents.
Posted 20 June 2007 - 07:50 AM
Not sure yet, but my inclination is just to say I'm strictly prepaid sales as I don't really need to complicate my life any more than it already is ... especially for such a modest return. Hopefully my call will simply produce a credit card sale ... if they simply can't do it any way other than a PO, I'll make a decision based on the conversation.
Surprised there are so many strong opinions on both sides of the equation, a really lively thread!
Posted 20 June 2007 - 02:32 PM
Lol ... I still think this conversation was well worth while as it made me think about my options, and whether I want to extend credit, and generated a great conversation hitting all the pros and cons.
To quote my now favorite new mantra :
"Be glad your site converted. Ship it. Next order, Please!"
Edited by arlen, 20 June 2007 - 05:00 PM.
Posted 20 June 2007 - 04:49 PM
Some day I am going to pick a poor soul who thinks they can get away with it, and chase them all the way into small claims over that $60. Just for fun :-)
Posted 21 June 2007 - 08:57 AM
Posted 21 June 2007 - 06:19 PM
So why take the risk?
However, if you think your market is such that you might lose the order to a competitor,
I'd keep track of all the PO orders and how many were lost due to the payment with order request.
Then based on that, you can make an educated decision on whether you want to change your policy and any minimum order you'd accept with PO.
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