Distributor payment terms

[Palmetto Coast]

I am trying to find out what terms most distributors end up using for payment to you. Net 30? Net 60? Does anyone go Net 90? Does it vary on certain things? How are they, generally, at meeting thses obligations? Do they place any specific demands in your court?

Thanks for your help.

Todd

[Wes Henderson]

I am trying to find out what terms most distributors end up using for payment to you. Net 30? Net 60? Does anyone go Net 90? Does it vary on certain things? How are they, generally, at meeting thses obligations? Do they place any specific demands in your court?

Thanks for your help.

Todd

Net 30 is the norm, and is about as much rope you should give. Some of the control states are longer, we have 60 day terms with PA, for example.

WH

[FrEwing]

I am trying to find out what terms most distributors end up using for payment to you. Net 30? Net 60? Does anyone go Net 90? Does it vary on certain things? How are they, generally, at meeting thses obligations? Do they place any specific demands in your court?

Thanks for your help.

Todd

I have the same question plus the question of what percent of list price do distributers usually ask for or negotiate?

[joethebroker]

I have the same question plus the question of what percent of list price do distributers usually ask for or negotiate?

I am a broker/sales agent from NC, and represent brands in both control, and non control states. The distiller sells his goods directly to the

distributer, in non control states, for whatever price he decides. The distributer adds t5axes & shipping and works anywhere from 25% to 40%. It

depends on your selling relationship with your Dist. The retailer than marks up another 30% to 50%. The terms you give your Dist are usually net 30;

but sometimes you give better terms to get a bigger order. Promos and deals are usually split between you and the Dist.My 30 years of expierence

has taught me that more often than not 30 days often turns into 90 pretty often. ALWAYS DO CREDIT CHECKS ON 1st time buyers.

In most control states, the state takes your goods, puts them on their floor in bond, and pays you monthly for the goods that are depleted. If

your product doesen`t sell and they decide to de-list you; you take the goods back at your own expense. Each state hase their own formula for reaching a retail price.

Hope this helps. If I can be of any more help just let me know.

[Scott @ Twenty2Vodka]

We get paid 30 days from delivery in NJ. In Maine (a control state), it's exactly as joethebroker laid out RE the state's bond warehouse. We deliver whatever quantity we want to the warehouse, and the amt sold from the warehouse is reported bi-monthly in the form of a purchase order. We then submit an invoice for that amount, and get paid within 30 days.