Recently, I had a coaching call with a promotional products distributor who was frustrated because some of her clients were taking months to pay their invoices. It was causing her stress-filled days and sleepless nights. Can you relate? Below are seven tips that I shared with her that you too can use to improve cash flow in your business.
- Investigate your client’s paying history before you process an order. Consider using a service such as Dun and Bradstreet.
- Set up payment terms, and have your client sign a payment agreement, before you process an order.
- Ask for a deposit on all orders that will, at the very least, cover your costs.
- Follow up with the client the day the order arrives to make sure they are happy with the merchandise. This will eliminate surprises and late payment problems and will give you an additional opportunity to thank the client for their business.
- Offer a small discount for payment in advance or payment within 10 days of the invoice.
- Set up a merchant account to accept credit cards. Many companies will pay faster with a credit card.
- Consider affiliating with a larger promotional products company. They will handle the invoicing and many will pay you when the order is entered.
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Speaking of affiliating with a larger organization, if you’ve been considering making a change in your promotional products career, and you want an objective opinion, I can help. Contact me for a free, confidential consultation and I’ll help to point you in the right direction.
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Rosalie Marcus, The Promo Biz Coach, is a promotional products business expert, coach and speaker. Combining her skills and years of experience in promotional sales, she helps her clients sell more at higher profit margins and dramatically increase their incomes! Get a FREE special report: 10 Big Mistakes Promotional Professionals Make and How to Avoid Them and a FREE Skyrocket Your Sales audio download at www.promobizcoach.com. Reach her at [email protected] or (215) 572-6766.
