FollowA recent conversation with a member of my Working Smarter Success Circle prompted this question: “I’m a confident promotional products sales professional with great ideas and big name clients, but my cash flow is terrible. It’s causing me much anxiety and sleepless nights. What can I do?”
My advice: Why not ask for a deposit on all your orders? We are in a custom business. Painters, plumbers and general contractors routinely ask for deposits before they start work on a job. Why shouldn’t promotional products sales professionals?
An easy way to get deposits is to set up a merchant account and accept credit cards. Many clients will find it easier to put a deposit on a credit card. While you will be paying a small percentage to the credit card company, you’ll have the benefit of getting your money up front.
To keep cash flowing, set up terms with your clients before you accept the order. Make sure you check the credit references for all new accounts. Let your clients know (in a nice way) that you expect payment in 30 days or less. Get to know the people in the Accounting department who will be paying your invoices. Giving them a small promotional gift can go a long way in establishing goodwill.
Reward your clients for paying in a timely manner by sending them a thank you letter or a small promotional gift. Many of our suppliers routinely send out thank you letters to distributors with good paying habits.
Dealing with credit-worthy clients, getting deposits, being clear about your payment terms and letting your clients know how much you appreciate their prompt payment will go a long way in improving your cash flow.
What do you think? Do you ask for a deposit on your orders? What do you do to keep the cash flowing in your promotional products business? All replies are welcome. Just hit the comments button below.
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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 http://www.promobizcoach.
Reach her at Rosalie@promobizcoach.com or 215-572-6766.
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Hello to all
I have been in promotional sales in my own business for 10 years and I always ask for 50% down. I find that my clients will pay the entire invoice so they don’t have to do it again. I also found that using Paypal wasmy best bet for getting the money up front. Even my largest clients are willing to pay. I have had 1 client in 10 years not do business with me due to the deposit. Good luck and don’t be afraid to ask for the money this is your income – go get it.