# general billing question



## In it for the Bucks! (Mar 12, 2012)

Just wondering how everyone deals with big orders. I am very leary of taking any because I had a order for 100 jars of strawberry jam a year or so ago, I said pay at delivery because she was using it in her CSA. When delivery date came she only bought a dozen or so.  Needless to say Jam was leaving my house EVERYTIME some came over. (even if they already had a jar or 2) I guess my point is do you COD or Pre-pay or half now half later?? What has worked best for you?? Just not sure if the pre pay thing works for customers (not that I have many yet) Just wondering what has worked best for you guys. Thanks for the input.


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## Guest (Jul 15, 2012)

Cally,
Soap is alot different than Jam... it does not spoil for one.. some of the scents can fade, others don't... I just used a bar of black raspberry vanilla that is four years old and still smells great... So with that being said.. and the fact that you have to cure soap some... make it... 
it gets better with age... I have a few wholesalers so I must make alot of it ahead of time, its the only way I could possibly keep up with some of my orders.. 
Barb


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## eam (Aug 22, 2010)

Cally, I don't really have any advice but I understand what you're saying. I had a customer (who owns a B&B whose primary season is ski season) order 100 lip balms. When it came time for delivery, she only took 15. So, I'm stuck with a bunch that I have no outlet for. I also had a customer order 75 pounds of lamb sausage, but when the time came she only took 25 because she didn't have room in her freezer. So, I now have an extra 50 pounds in my freezer....taking up space. Should I have gotten a deposit up front? Probably in both cases but I didn't. Would I next time? I honestly don't know. I'm also looking forward to hearing others experiences.
Elizabeth


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## Greylady (Mar 28, 2012)

Having had another business that did orders, money up front or at least 50% to cover your costs to even do the job is what I did. So I was not out anything. Now anything specifically custom was paid for up front.


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## NubianSoaps.com (Oct 26, 2007)

With private customers they pay before I ship. With stores, most pay before I ship, others I bill. Many times I opt to bill the customer because of their order, lotions, body butters, soap. Soap always ships seperatly so I know the costs up front, but tolietries are such a mixed bag, this way I am not guessing wrong when an order comes in by phone on how much it will be, they simpy pay the bill. If an order comes in via email than I can just package the box and email them back exactly how much it will be because I know, I am not guessing. You have to find what works for you, I have never had a problem with someone not paying their bill, if I do, I call every 30 days and then their next order has to be paid ahead. Vicki


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## tmfinley (Feb 21, 2008)

All the supplies I order for soap making make me pay before I receive the items. Why would my soap be any different for others? For most transactions I require payment up front. There are a few orders here and there that it is more convenient to get payed at delivery. Those I take on a case by case basis and go with my gut, fully realizing I may be out $ if the deal doesn't go through as planned. Of course, with my large wholesale accounts it is different and I get terms dictated to me and have to take a net 15 deal. Luckily I haven't gotten burned on any of wholesale accounts yet.


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## jimandpj (Mar 11, 2008)

To me, it's all about stress and convenience. If it's going to stress you out, then get paid up front. Anybody who is serious about it won't be offended. If they require terms they will ask for them. I don't ever split payment, too much to keep track of. 

PJ


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## NubianSoaps.com (Oct 26, 2007)

Tiffany what is a 'net 15 deal'? Sorry never heard of that term used. Vicki


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## jimandpj (Mar 11, 2008)

Net 15 is the terms that are given to an account. It means they have 15 days from the time they receive the order to pay the balance due. Net 30 is more typical, net 15 are very favorable terms to the manufacturer. 

PJ


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## NubianSoaps.com (Oct 26, 2007)

Thanks PJ, never heard of that, my contract is a 30 day Accounts Receivable (in fact I went and looked because I knew I had never seen that but even one of my bigger chains I am looking to get into says the same thing (we carry a 30 day account receivable), perhaps I will ask my gal if we should change it to a net 30  I have seen stickers you can purchase to put on your bills or boxes that say this, but never knew what it meant. Nobody has ever questioned me....we do 1% after 30 days, 1.5% after 60 days, but have never had to enforce it. Vicki


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## jimandpj (Mar 11, 2008)

Vicki -

Net 30 is definitely a lot easier to say (or type) than 30 days Accounts Receivable. LOL

I've never had any trouble either... until I got a sales rep. This is a guy who does gift shops all over the state of Indiana. He came to me and I thought it would be a nice easy way to test out a sales rep. He does well, but we've had a couple of accounts that have been delinquent. The good news is that he contacts them and follows up. But it is interesting (and not surprising) that the accounts that deal with him (instead of me) are more likely to be late.

Actually, I take that back. I do have one account that has had a check "lost in the mail" 3 times. Why can't people just be honest and admit they never sent it??

PJ


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## In it for the Bucks! (Mar 12, 2012)

Thank you all!! Deffinatly something to think about.  Elizabeth I wish I lived closer. We are out of lamb right now and that sure does sound good. 
I have not gotten to a big order that I didn't have in stock yet but I am just looking into the future so I can be ready. I had a bunch of people say I should make lavendar and then when I made it they all said "oh, I just thought it would be a good floral for you, but, I don't really like lavendar."  I have found someone who does like it and they have a big family, and I will make half into lavendar/lemongrass and I know that will sell.  (always and up side).  Thanks again!


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## MF-Alpines (Mar 29, 2010)

Vicki McGaugh Tx Nubians said:


> Tiffany what is a 'net 15 deal'? Sorry never heard of that term used. Vicki


Vicki, you crack me up!

Yes, typical term used in commerce, especially manufacturing. I would guess most of us have terms "Cash in Advance". And to get really technical, any Net terms are from date of shipment unless freight (mailing fees) are included, then it would be the date of delivery. And then, if you are doing an inventory, if your terms include freight, then you own the material until delivered to the customer. But if you are charging the customer for freight (shipping feeds) (which I'm assuming we all do), then it is considered their ownership even if they don't have delivery yet. Not a big deal unless it's the end of December.


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