Those motorcycle shops who pay for their order by credit card aren't affected by this situation and probably aren't even aware that anything here has changed.
To replace trade credit accounts we introduced "Pro forma"
invoices. Pro forma invoices are invoices that are sent to ewe for full payment before
we will ship your completed order. The options for payment are by cheque or
credit card only. Ewe are also given the option of signing an authorisation for
us to keep your credit card details on file in our database so that when ewe
order we can process your order more quickly when it is ready for despatch.
If an invoice is not paid by the "pay by" date then we reserve the
right to sell the item to the next customer who orders that product without
further notice. Fail to pay for your order three times and we will only accept
orders with credit cards or pre-payment.
Pro forma works very well for us and for most motorcycle shops too. However
there are some shops who won't do business unless they can pay by direct deposit
and so have stopped purchasing from us altogether - most of these motorcycle
shops have been our customers for anything up to 13 years and always paid by
cheque, even if very late, but will no longer pay by cheque anymore and so they
then limit their ability to sell desirable products to their customers. These
are the same customers who come directly to us because they can't buy what they
want from the dealer who sold them the $10,000 to $45,000 bike and then ask us
why they can't buy from this or that shop. Most of these customers never go back
to a motorcycle shop again to buy their sheepskin seating products and just buy
them directly from us - good for us but what about your chance to get a piece of
the pie? Many of these same shops were apart of our direct deposit experiment
and they are also the reason we no longer offer direct deposit or trade credit
..... see below for more about this.
We do not offer direct deposit facilities anymore
either and here is why :
We experimented with direct deposit payments for a short while and found it to
be an absolute disaster. We selected about a dozen motorcycle shops who wanted
to pay by direct deposit and faxed them our account number with explicit
instructions to fax us with their payment details when they had transferred
money to our account. Most shops didn't fax us any confirmation of their
payments - two shops did send us confirmation every time without fail - two out
of twelve is not good.
We couldn't even follow the trail by the name of the depositing accounts either.
They often were not in the name of the shop making the payment. Of the twelve
shops one of these paid us by four different accounts, only one of which
included the shop name, and often did not advise us of their payment. It cost us
more than we made on the sales to track down this mess and sort it out.
The HeadSheep was talking with the head of the accounts department of a very big
Australian company one day, just sorting out a problem with an account we had,
and asked the manager about their experience with direct deposit payments and
guess what! their experience was pretty much the same as ours except it was on a
huge scale and costs the company many large amounts of dollars to deal with.
This cost is passed onto the consumer [that's ewe and me buddy!]. When asked
what they thought about direct deposit payments the manager said very clearly
that they would rather just stop the whole thing but it was just too late to do
so and the company had no choice but to continue and to pass the costs along.
That was just one company who had enormous resources and they were regretting
getting involved with the whole thing.
Unlike most of the shops we used in our trial, we don't have full time
bookkeepers here to log onto our bank account daily and see who has paid what
and to figure out who it might have been who put money in our account. We still
have not worked out where one payment came from, the nearest we can figure is
that someone has paid us twice [but we are only guessing].
To summarise:
We are very easy to get along with but we want our money
There is absolutely no valid reason why your business can't purchase and resell
our products
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Copyright Sheepy Hollow 2006 |