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No credit available hindering sales

  • 20-03-2010 8:18pm
    #1
    Alex Swan
    Closed Accounts Posts: 15 ✭


    Hi guys,

    I am in the wholesale and catering trade. I want to increase my figures and open some new accounts,my strenghts are price,service and convenience,the only thing stopping me opening new accounts and building the business is that i cannot offer credit to most potential customers. I have been out selling and have ended up slicing my margins to offer an incentive for people to pay me cash on almost every pitch,but some people just refuse to part with their cash on delivery.I know some customers simply would not have the cash but they are not the customers I want or need. I am targeting customers who I am confident can trade with me.All i need is some other method of closing the sales when the pitch reaches the payment terms stage.I have tried cross selling and concession sales but nothing is securing the business.People tell me they are ragin they cannot deal with me because I have great margins to offer them.Any suggestions??


Comments

  • #2
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Is it because you a) can't get an overdraft? or b) your suppliers won't give you credit?


  • #3
    Alex Swan
    Closed Accounts Posts: 15 ✭Alex Swan


    No you have me wrong,I am selling and I cant offer credit to potential customers which they are offered by my competitors.


  • #4
    drunkmonkey
    Registered Users, Registered Users 2 Posts: 28,696 ✭✭✭✭drunkmonkey


    Can you get trade credit insurance? and maybe get the banks or your suppliers to offer you extra credit terms based on the insurance?


  • #5
    Southsider1
    Closed Accounts Posts: 674 ✭✭✭Southsider1


    Have you onsidered invoice factoring?

    http://www.coface.ie/CofacePortal/IE/en_EN/pages/home/what-we-do/receivables-finance


  • #6
    Culchie
    Registered Users, Registered Users 2 Posts: 5,047 ✭✭✭Culchie


    'Sales' are no good unless you get paid for them.

    The catering/hotel/hospitality sector is one that I am extremely weary of dealing with at present (my business covers all sectors). The hotel developments and their owners are intrinsically linked to the property crash, I would guesstimate that 80% of them are hanging on by their fingernails ...and using unpaid debtors as working capital

    Be careful what you wish for.....all very well giving yourself an ego boost by increasing 'sales' on paper, getting paid is a different matter.

    Have you looked at targeting liquid/cash businesses with your products/services?


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  • #7
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Alex Swan wrote: »
    No you have me wrong,I am selling and I cant offer credit to potential customers which they are offered by my competitors.

    So you cant offer credit because you dont want to? Because thats what it sounds like.


  • #8
    Joey the lips
    Registered Users, Registered Users 2 Posts: 10,262 ✭✭✭✭Joey the lips


    Have you ever considered consignment stocking. In otherwords if they dont sell it you will credit it off the next order as you own all the stock till sold.

    However the twist on this could be only a max of 50% credit is allowed. This stops them taking the p and over ordering.

    I have delt with many people in business and not all were allowed accounts. They were just too unreliable. Consignment stocking and cost price sales were all I could do to grow the accounts but it took a while to grow the business.


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