maria Zampini \u2014 January 1, 2012<\/p>\n

Trade shows are in full swing. We\u2019re all a grippin\u2019 and a grinnin\u2019, as I call it. And while it is enjoyable to meet and greet old and new customers, we are all at trade shows for one or two basic reasons: to buy or sell product.<\/p>\n

Holiday and economic indicators are looking more promising than they have in years. Hopefully that increased buying trend continues at the trade shows and, more importantly, in spring when consumers are out in full force. But one of the age-old business challenges we face is what happens after the sale \u2013 namely, accounts receivable and accounts payable.<\/p>\n

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I know the topic isn\u2019t new, however, I believe we can all use a friendly reminder especially if it helps us during these overwhelmingly stressful times. You\u2019ve likely heard the saying, \u201cA lack of planning on your part does not constitute an emergency on my part.\u201d If in business we fail to plan, we plan to fail. And when we don\u2019t adequately plan our purchasing, it has a trickle-down effect; either for our vendors when we can\u2019t pay on a timely basis, or for us when our customers don\u2019t pay as scheduled.<\/p>\n

In an economic downturn, there are many nurseries or green goods suppliers who are more than happy for your business; quite honestly, they\u2019re taking orders from anyone and everyone, regardless of whether the buyer is considered an A, B or C grade customer. Don\u2019t misunderstand me \u2013 you need all size customers. Pennies always add up to dollars. What I\u2019m talking about here is how promptly customers pay their bills, as cash flow is king.<\/p>\n

There are even some people who will skip from vendor to vendor knowing they can\u2019t pay and can \u201cafford\u201d to burn some bridges. Some will, however, be forced to switch vendors because for them the few nickels they save can mean life or death \u2013 and at this point, they have no other choice. There are also those vendor-customer combinations that are loyal to each other despite slow pay or slightly higher costs. They talk frequently and work through the rough patches together, as a team.<\/p>\n

I think our industry has gone to just-in-time buying for many reasons, but perhaps most of all because this way people are assured they can only buy and pay for what they can afford. Wow, just think: What shape would our country be in if even more of us, personally and professionally, had taken that path instead of the enticing credit card lane?<\/p>\n

But, what goes up, must come down. The thing is, this economic situation isn\u2019t going to last forever. And when things do fall back in to line, in my opinion more vendors are going to be able to pick and choose whom they do business with. Thus I contend that right now is the time you\u2019d best be taking care of that customer or vendor who takes care of you! If you have a vendor or customer you want to stay married to in the good times, you need to be taking care of them in the bad times as well!<\/p>\n

Now that you\u2019ve made your spring 2012 buys, it is time to assess your ability to promptly pay for your orders. Actually, it\u2019s past that time, as it should have been done before placing an order. But better late than never! If you didn\u2019t discuss terms up front, you\u2019d better double check your order terms now. If you need credit or extended terms, ask for them, just not at the 11th hour. What\u2019s the worst a vendor can say \u2013 no?<\/p>\n

To vendors, I suggest updating your credit applications if you haven\u2019t done so in a while, and be sure you have current, signed apps on file. There is nothing worse than calling a customer upon shipping to \u201cremind\u201d them their order is coming COD and hearing \u201cI didn\u2019t know it was COD.\u201d This year, call customers earlier than ever before so you can resolve any dispute prior to the truck being loaded \u2013 and while you still have options.<\/p>\n

Over the years one thing that absolutely got me were customers who acted like they were entitled to extended terms beyond reason. If you choose to do business with customers, like cities, that will not pay for 120+ days, don\u2019t ass-u-me that your vendors will gladly wait, especially if you don\u2019t ask for those extended terms beforehand. Vendors are not your lending institution.<\/p>\n

Look, even normally good paying customers can have a hard time paying promptly. But if, for whatever reason, you can\u2019t pay your bill, then I can\u2019t emphasize enough how crucial communication between you and your vendor is. Most people are willing to work with you, if you just talk to them. For some, I think non-communication is simply an issue of natural procrastination, or perhaps pride; they don\u2019t want to admit they need a little help. We all need help at some time or another and we shouldn\u2019t be ashamed to ask for it.<\/p>\n

If your vendor calls for payment, even if you don\u2019t have a concrete answer or the answer you know they\u2019ll be looking for, at least take the call or return their call promptly. Don\u2019t avoid them. They will respect you more for your honesty.<\/p>\n

Everyone has different philosophies on business. But in my experience, which was learned the hard way, when you\u2019re a vendor trying to collect money, you\u2019re more likely to succeed with honey then you are with vinegar. If the business owner isn\u2019t the one making the collection calls, then you should really know what kind of impression your A\/R person is leaving with your customer.<\/p>\n

When it comes to A\/R or A\/P, or just business in general, we may need to stop and think, am I treating this customer the way I\u2019d like to be treated? And if not, consider this: You may think you don\u2019t really need that customer today, but will you need them tomorrow?<\/p>\n

Maria Zampini is the president of UpShoot LLC. Her company\u2019s focus is \u201cliving, sharing and supporting horticulture\u201d through new plant introduction representation including LCN Selections. She can be reached at [email protected], and her website is www.upshoothort.com.<\/p>\n","protected":false},"excerpt":{"rendered":"

maria Zampini \u2014 January 1, 2012 Trade shows are in full swing. We\u2019re all a grippin\u2019 and a grinnin\u2019, as I call it. And while it is enjoyable to meet and greet old and new customers, we are all at trade shows for one or two basic reasons: to buy or sell product. Holiday and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-895","post","type-post","status-publish","format-standard","hentry","category-nursery"],"yoast_head":"\n