Staying Afloat Part 2: The Vendors Keep Calling and Invoices Keep Coming
I’ve always tried to be pretty candid so here I go again…the vendors keep calling, emailing, and the recurring invoices just don’t stop. Yes, I have some outstanding invoices—many of my vendors have been extremely helpful and understand times are tough by asking for small monthly payments. Some have asked for post-dated checks—which during these times I don’t want to write because I just don’t know what one month is going to be like from the next. Some have been pissed off—which they are entitled too—because I have been slow on payments but the most I could offer was to give their merchandise back. So—yes I gave back one vendor 8K of his merchandise back. Then there are those vendors whom negotiated terms but keep calling wanting money before the set terms. On one end I understand their frustration because all of their clients have been slow paying—if I pay them then I can’t pay another bill and so forth (a vicious cycle that keeps going round and round).
So—dad calls me up today saying all the economic news out there states we are going to see the economy change sooner than later—I don’t buy it. I have many clients who have told me they will be let go this summer. I am saving all I can for the brutal summer months ahead of us.
Yes, I am buying gold but not as actively as my father thinks I should. It’s tough because it takes a substantial amount of time to separate the gold, test it, weigh it out, give them a price, get their fingerprints and license copy, etc. I haven’t advertised as much because I am also scared to bring riffraff into the store. I have bundled the phone, internet, etc. The problem is not so much the monthly bills but instead the outstanding invoices with some vendors. If I could ask anything of my vendors—I would ask them to email and not call (I am trying to be on the floor as much as possible). I would ask them to please be patient and if they could accept smaller monthly payments. I am even willing to return some merchandise if I have too.
What would you ask of your vendors?
Retailer commented:
I'm in the same boat. Vendors call and think we have all this extra
cash laying around that we are holding and not sending to them.
When I ask them if they want merchandise, I get the same response,
They go crazy!! Things are very bad out there. Most product is not
selling. Vendors with merchandise at retailers that are not paying
should take the merchandise back. It beats the retailer folding and
the vendor losing everything. After all we all need to protect our
families.
Rick commented:
Nothing is quite so frustrating is an overdue customer who refuses
to come to the phone. We know you aren't busy with customers, or
else you would have some money. Vendors who are ignored want to
take you into court, put you in for collection, etc. Make a payment
EVERY month, even if it is small. Keep your promises. Don't lie.
J. Ford Sunderland commented:
Shanu, I would suggest that you set aside time each day or weekly
for you to call your vendors. If you call them, are honest with
them and don't make any promises you can't keep, they will really
appreciate the effort you are making. Believe me, your vendors hate
making the calls as much as you hate getting them. If you are
proactive about the calls, they will appreciate you and you will
free yourself up to spend time on the salesfloor. God Bless, Ford
