Large order received - Payment terms - Help

**adrianh** · 17-Sep-13, 10:15 PM

Risk vs reward added to the equation is being able to finance the manufacture and not getting payment for a month or two.

I think it sometimes best to turn down a big order if i is to big to handle, financially or otherwise. I think it better to spread the risk across multiple smaller clients

**Gemais** · 18-Sep-13, 02:15 PM

[QUOTE=Pap_sak;97253]I am not sure if I a agree with you.

When you quoted you would have quoted on their terms - you cannot change the terms on your quote nether can you change the terms once you get the order.

Not sure why people think this is ok??

I totally agree with this but the problem with this came in when I was out of the office. I got a call from them asking for a quote, I asked if I could do this when I got back, but they insisted it was urgent and needed to be sent right away. Prices were sent to them with no official quote format. This was early June. As I had never dealt with them before and not even on their database I just assumed it was so they could get the number of quotes as needed. Only now have they got back to me. I have not been asked to fill in any official forms so they would have all my details either. It has been another learning curve as it has tied up quite a bit of my time. I did send a mail saying the only way I can go ahead is with a deposit and have not heard back from them. I have mixed feelings about this, but I am happier declining the order. I will in future make sure that I am not bullied into getting prices through in such a rush that I cannot follow proper procedures. Thanks for all the feedback.

**CLIVE-TRIANGLE** · 18-Sep-13, 03:30 PM

Perhaps this is not the correct topic on which to post this comment, but for some reason many large companies somehow think that it is their privilege to dictate payment terms. I have had this happen to me numerous times, and every one of my clients, without exception, has had it done to them.

The only way to avoid this is to have your general trading terms and conditions included on your quote (almost all accounting systems will allow you to include it in some way or another) and have a line that says in effect, that acceptance of the quote is acceptance of your payment terms.

I have mixed feelings about this, but I am happier declining the order.

Personally it is what I would do, but often an SME believes that they are not able to do that and sooner or later they will be exploited.

You raise a very good point about your inability to ensure quality control when the volumes are so large. I guess that's another point for inclusion in those terms?

**adrianh** · 18-Sep-13, 10:51 PM

If you feel uncomfortable then decline the order. It's a bit like a small oudtjie getting talked into going into the ring with Mike Tyson, you just know you're going to get your head bashed in but you also feel ashamed to try and get out of it. Bottom line, you're better off being called a live chicken than a dead jacka$$

**Blurock** · 26-Oct-13, 11:01 AM

Learning to say NO, is an important attribute in business. Over the years I have seen many small and medium sized businesses fail becuase they could not say no.

Corporate buyers or procurement officers are trained to get the best deal for their companies. Leaving orders until the last minute is one of the tactics. Slipping in additional terms and conditions when finalising tyhe last minute agreement is another.

A good business princviple is to say no when in doubt. That big order can ruin your cash flow and ruin your reputation if you are not geared for it. Stick to your guns. Your terms and conditions were formulated out of your business experience. Do not change that because of a possibly once-off carrot dangled in front of your nose.

My experience is that emotional decisions or decisions taken under pressure or duress, are more likely to be mistakes. Be calm, sit back and get advice if you can not decide on your own.

**Gemais** · 30-Oct-13, 03:19 PM

Thanks for all the advice, really appreciated. I work quite closely with two of my oppositions (Sounds strange) but we help each other out by doing collections for them when we are doing ours and vice-versa among other things. I told one about this situation and they had had the same problem, but they took it on. When it came for payment it turned out that it was an employee at the bank who had given a relative the order but as they were not in this line of business they subbed to him without him being the wiser. So the relative got paid and he had to chase his money. He admits it was foolish. The final e-mailed order I got from them was so scratched out and signed over it was ridiculous. Glad I dodged that one. Now I need to go and look for someone who can help with insuring my thatch house.