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Selling handmade cards - Getting Trade Accounts
Getting trade prices and trade accounts set up can be frustratingly
hard work.
There are many suppliers in the craft industry that have a fall
in scale price for products depending on how much you order.
This is as much of a trade price as you are going to get, especially
when you are ordering in small amounts. If you are working alone
and ordering on a small scale it will always be very difficult
to get trade prices and trade accounts.
You can build up a relationship with a supplier over a period
of time and when you have ordered on a regular basis and paid
regularly, you can ask that they give you an account with 30 days
to pay. This is always helpful, With the cash flow. You can ask
for a discount on the products that you are buying regularly.
Or a set price if you buy in bulk, If you are given a bulk price
always ask what this minimum order is to obtain the bulk price.
If you are given a bulk price then you must assess whether you
can actually afford to buy these products in bulk and how long
you will have them in stock, as this is money basically sitting
around doing nothing. If you decide that you cannot buy these
items in bulk it is more sensible to continue to buy in small
amounts and pay a bit extra.
Almost all companies when setting up accounts with clients ask
for a credit application form to be completed, when they have
no relationship with you to assess. This application form will
ask for business bank account details, plus they may request two
trade references that you currently deal with on a trade basis,
they will then write to the references asking whether you can
be relied upon to pay your account on time and regularly, this
process can take some time and often your trade referees do not
respond as they do not have the time or a reason to vouch for
you or they may not remember you at all which will reflect in
your application for credit being turned down.
Therefore if you are applying for a trade account with one of
your suppliers, when you have had no relationship with them, you
must be very careful as to whom you supply as a reference, it
is advisable to give references to people you know quite well
and who trust you and deal with your regularly, also phone up
your proposed reference and ask them if you can have there permission
to use them and also inform them of exactly which company will
be applying to, this way you will find they will co-operate with
you and remember to actually act when your Supplier contacts them,
and very soon you will receive confirmation that an account has
been opened for you.
Next section: Finding
Retailers
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