We interupt this program.....for change!

February 23, 2009.

So....a few weeks ago we mentioned we.......er uh me was making some changes at Jamie's Painting & Design.  Some of our policies were not really working out the way they were supposed to (in case you need a refresher course this is how it is supposed to go):

1. My company sells a products wholesale through a sales channel
2. The sales channel places an order with my company
3. My company makes the order
4. My company ships the order
5. My company bills the sales channel
6. Then we wait 30 days to get paid
7. and wait
8. and wait
9. really, still waiting.....I kid you not, we are still WAITING!

Ch...ch...changes

Which brought me to that post I was discussing, where we decided to change our policies.  In simple terms, "We don't ship it till you pay for it."  Times are tough.  Times are very tough for retail and I can not afford to keep all these business's afloat.

Are there exceptions? Yes - always.  Are we penalizing the entire industry for a few bad apples?  Um....yes we are, we can not afford to stay in business if we do not get paid.  Are we willing to work with a store, a website or catalog that is honest about their finances and open about when we will get paid?  Absolutely - yes we will be open to that.

Fortunately for me most of my sales channels are great to work with, though that is not the case with all of our channels.    I must state that 99.9% of the channels are fabulous and pay their bills.  I have hundreds of channels and I am grateful for all of them and happy they pay for their services.  What I did not state in my earlier post was how I felt about my change in policy.  I was  horrified about it.  I did not want to rock the boat.  I was afraid I would lose sales, lose friends and get hate mail.  Really, I am okay with change - I am not so okay with making demands or refusing to keep up my part of the bargain (and yes I totally get they did not keep up their part of the bargain).

What Happened Next

After my accountant pushed send on the "change email" I held my breath, no really I did.  I was a nervous wreck about it.   We got one email back from a physical store....and it went something like this:

Dear Jamie,

I am disappointed that a few bad accounts has forced you to change your accounting policies.  It is unfortunate that only a few of your other accounts have not paid on time will affect those of us that do pay on time.  Unfortunately at this time we will no longer be able to work with Jamie's Painting & Design, due to our terms do not let us continue with this partnership.  As far as I know we have never gone delinquent with any of our bills.

Um........ya our return email was this:

Dear "Store that only sold $300 of product this year",

We are sorry that this partnership must come to an end, however your store has been delinquent more than once this year.  Also, our records show you owe us ____ amount of money for products Jamie's Painting & Design shipped out over 9o days ago.  Thank you again for your partnership.

The Moral of the Story

And um if I must....before you send out an email propping yourself up, putting us down and assuming (never assume anything it will make an ass out of you and....ya, ya Bad News Bears) that you are innocent.  For the love of God - check your accounting records too!  I have to say I hate losing any account, and I am sad that I lost this one - but come on!  Pay your bills um kay?  Ironic? I say,yep!

Comments

[kim]

the world is so full of idiots!

[AlyiceEdrich.com]

That was a tough call to make. But like you said, you must do what is necessary to keep your business afloat. If your buyers like your products and they sell well, they won't mind the change in terms. If they're the ones who mess up, or like to hold onto their own money until the very last minute--well, that will always be another story.

[Sharon]

I admire your honesty and integrity. Your grit and determination will serve your company well.

[Marnie Vollenhals]

I have to say that you are correct to do what you did. I do the same in my own business and plan to keep the prepay law. And Jamie..you are hilarious, I've been reading your blog for a couple of months now and love your business topics..Thanks!