Terms & Conditions
It is important to draw up your terms and conditions for both trade customers and for the public. They should include:
- Details of your minimum orders
- Carriage/delivery - is it free or charged to the customer?
- What is the recommended retail price? It is useful to include this, as you will often be asked to provide a figure by shops.
- Any conditions about display or point of sale material (if you provide any)
- Credit terms
- What deposit is necessary - when a member of the public places an order always take a deposit or ask for full payment in advance.
- Details of any interest charges that you will charge on any outstanding debts.
- Once an order is placed, get the customer to sign it and make sure they are aware of the relevant terms and conditions.
More information is available
Establishing the costs
Creating a pricing structure
Terms and conditions of sales
Customer relations
Payment
Avoiding Payment Problems
It is necessary to have clear terms and conditions established at the time of purchase. If you have put your terms on your invoice, you can enforce the conditions and take the customer to court.
Always invoice promptly. This is important for your cash flow and reduces the chances of payment problems.
Always keep good records of orders and invoices so you know what is overdue and when to chase for payment. A simple accounting software package will assist.
Maintain good communication and be professional. When you contact someone about an outstanding debt, be polite. However, do not allow them to walk over you. Be firm in your request for payment. Ask them to suggest a time scale for payment – normally people are committed to their own suggestions. But do not accept unreasonably long payment schedules.
More information is available
Establishing the costs
Creating a pricing structure
Terms and conditions of sales
Customer relations
Payment
