Cross Border Credit To do or not is the question
Well that’s a little tricky if you are an SME. Large businesses have lawyers and reps in place . But here you are an Individual Small Medium Enterprise, and buyer is few thousand miles away. First the challenge is to connect with them then to ensure that payments are secure and you and your factories get paid for the hard work. Which in third world is not easy. But then you do get tempted to offer them credit to gain their trust, and this could either take your business to next level or it could boomerang in your face.
After credit is in place and a disagreement would surface concerning a certain delivery. Sound advice would be to resolve amicably and not loose your cool or sleep. Though good businesses would never make you feel insecure, they respect their commitments, but off and on every business will come across certain new buyers that need to be handled with care. Practice will make you identify buyers who mean business. Cross border especially is a dangerous gamble to play, But if you are a good supplier you both need each other as much.
If the order amount is large Banking is an excellent way to secure your self.
One of the conventional is “Letter of credit” an option where clauses are drawn out and the payments are ensured and handled by respective banks. However more businesses are choosing e-payments Forex options, Trust has become a strong drive to do business faster and understand each others needs , tying up buyers and sellers together.
Paypal and similar payment options do give sense of security to small enterprise business, in spite of higher expenses of almost 5% commission, both buyers and choose it for speed and faster settlements.
Paypal is not our first option but it gives our buyers ease, of making payment direct from their handhelds, so its become a good tool to provide service and make a faster sale. For new customers its also provides standing trust to begin a relationship.
So in our experience its good to initiate a business relationship with Paypal, keep your payments secure, study the customer dealings and only then offer credits. In short concentrate on building trust..
We being wholesalers come across various customers but before customers we like to keep our suppliers and labour safe, specially the good ones. Success to any business it is what it offers, so being in business since 1995 has taught us one good lesson to keep our supplier team and factory strong. For if supplies are good then word of mouth will definitely work in your favour and hence for business in totality.
Wholesale Glass Pipe Supply Chain
Sales in wholesale business specially Wholesaling Glass Pipes and customers in wholesale business are not quite different from other wholesale industries, but yet we have had quite a number of incidents that we can recall have made it to the wall. One of them we had a strange complainant who found the product fine but also claimed that he found a box cutter inside the package and how dangerous it was for him. Communication on the subject went on for about 15 days and we had to close it with a discount. It was apparent that this customer was only after discount. On the other hand we had the most pleasant experience with a real gentleman. Who on a repeat order asked us for pricing and we quoted 4$ for a certain product . His response was that he was unable to pay 4$ and would like to pay 4.5 instead. That was a 0.5$ increase for us, but more than that it felt good to be appreciated for your efforts. The vibration between the customer and us changed, and he is now a favourite customer for our team. This story like a legend has travelled down our chain. Customer is king but most Important of it all is your Supply chain. Specially in the age of Oberlo, Shopify and dropshipping, where every retailer and wholesaler can offer same generic product, supplies that can perform and give you exclusivity become most important for your total portfolio!!