Terms and Conditions

I've been selling a board to a customer for some time. I've always require d the customer to accept my terms and conditions in lieu of the T&C on the PO. This customer has done that by the buyer (who in general can legally b ind the company) sending an email. The last order had a problem with payme nt which stretched out to 11 months. So this time I have required the T&C be accepted in writing. Turns out the buyers were not supposed to be accep ting the T&C.

So now it has been bumped up to higher levels of management and/or legal te ams. They are in a big rush for this order and it has been waiting at leas t two weeks for this approval. They can only buy this item from me, so lev erage is not an issue.

I'd like to know how others handle large orders from big customers. I know if I buy something from a company I have to accept their T&C, but what do large companies do when buying from smaller companies? I do know the T&C f or a large company puts all the onus on the other guy whether buying or sel ling. They take responsibility for very little and push it all on you.

So how do you handle the terms and conditions of a sale?

Rick C.

Reply to
gnuarm.deletethisbit
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Reply to
jurb6006

Here's the way I look at it. When they're big and you're small, THEY have buildings full of attorneys and you don't! You just hold your nose and do the deal.

The only thing I won't do is agree to forced arbitration.

I'll pick on AT&T (one of my largest customers in terms of receivables). You execute a contract with 30 day payment terms. They pay you Net-120 (if you're lucky.)

See how it works? :)

The workaround is you just add in the time value of money into the contract/quote. Going after big companies for payment (when THEY decide they want to use their vendors as their bankers) is a total waste of your time.

If this buyer has good credit history, no need to rock the boat. In other words, you can only have the policies (ethics, looks, education, etc..) you can afford. :)

Reply to
mpm

and you don't! You just hold your nose and do the deal.

if you're lucky.)

ct/quote. Going after big companies for payment (when THEY decide they wan t to use their vendors as their bankers) is a total waste of your time.

etc..) you can afford. :)

The OP's question seems too vague to me, but I'll try and address it some.

Ultimately either they're credit worthy or they're not. Risky buyers can be a blessing though, there are many ways to play that card.

I very much like to use 2 different prices, one if you pay as agreed, one i f you're late. Either it motivates them to pay or you're entitled to more. And they agree upfront to pay recovery costs.

Some terms I just won't do. They can have a lot of terms on their side if they want, but they get to pa y for it. If cash flow's good or you're stuck with the goods, they can have all the t ime to pay they like. That's great because you get to charge them for the p rivilege, and in the latter case you've little to lose. Some will pay good money for cashflow, but of course that's an indicator of risk.

NT

Reply to
tabbypurr

We quote net/30. If anybody goes over 60, we put them on prepay terms.

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John Larkin         Highland Technology, Inc 

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Reply to
John Larkin

afaiu it can be double bad here because once you send the bill you have to pay VAT at the end of the next VAT period, whether the customer paid or not

Reply to
Lasse Langwadt Christensen

Accounts receivable is an asset to us, as an accrual-based US C-corporation, so appear as taxable income. LLCs and S-corps work on a cash basis, so show the revenue when the payment is received.

It sort of averages out. And it's all too complex.

Businesses shouldn't be taxed; only people should be taxed.

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John Larkin         Highland Technology, Inc 

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Reply to
John Larkin

The problem with that is what happens as jobs get decimated, or worse. Then the people don't have any income to tax. Taxes on consumption hit the poorest the worst, which is highly regrettable for many reasons - and tends to lead to riots.

Or perhaps you are thinking that the rich should be taxed highly so as to avoid that? But the rich are highly skilled at avoiding taxes, which scuppers that concept.

Reply to
Tom Gardner

I'd prefer consumption taxes. VAT is just hidden layers of consumption taxes. I prefer the taxes to be added on at point of sale, in plain sight. That also reduces the advantages that cheap imports have.

It's easy to exempt the things that hit poor people: food, kids' shoes, some reasonable level of rent, used stuff. Food is not sales taxed here in California, unless it's ready to eat, like at a restaurant.

Tax policy is usually optimized for the benefit of government, or for some mixture of jealousy and "fairness"; it should be optimized to benefit the population.

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John Larkin         Highland Technology, Inc 
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Reply to
John Larkin

Jurisdiction being where...?

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Reply to
Cursitor Doom

Myth. The tax system is set up to enable the rich to not pay. The loopholes are put there to do that. Otherwise the wealthy tend to go elsewhere.

NT

Reply to
tabbypurr

You would always want to make the jurisdiction in your home-court, I would think. Why travel to their arena (or hire a lawyer there) to file a claim?

Reply to
rangerssuck

Is that the California thing where something has a sticker price of $4.99, but a $5 bill is insufficient? I /hate/ that!

Same here.

When VAT was introduced here, back in the 70s, there were some truly bizarre examples based on whether an item was "zero", "ordinary", or "luxury" rated. For example a 1uF capacitor might be "ordinary" or "luxury", depending on whether or not its prime use was in TVs.

Fortunately that kind of idiocy has been ironed out.

It looks like in the US it, currently, is being optimised for those that have so much money that a tax break makes zero difference to their lifestyle. That's a waste of a tax break; it certainly doesn't encourage more consumption of local services and goods.

Reply to
Tom Gardner

Prices here are usually posted before tax, and the tax is added on. In plain sight.

Some fast-food places post rounded-off prices including tax, to avoid making small change. Like $3.00 for a taco.

I don't understand why so many people think that encouraging consumption is somehow good. It makes stuff more expensive for everyone.

I guess we could all get rich if everyone paid their neighbors $1000 a week to wash one anothers dishes.

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Reply to
John Larkin

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John Larkin         Highland Technology, Inc 
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Reply to
John Larkin

I agree about consumption per se.

I did specify "local" services and goods; keeping the money flowing round is generally A Good Thing, and was a central tenet of the now discredited "Trickle-down Theory".

That "discreditation" is largely down to the blindingly obvious concept that once you have a certain amount, adding

5% or whatever isn't going to change how you behave. OTOH, giving some money to your "neighbour" in return for something that is valuable to you is not a bad way to proceed.

According to Douglas Adams, after the denizens of the B-ark voted to use leaves as currency, one bag of ship's peanuts costed a major deciduous forest. It is a shame the human race is descended from them!

Reply to
Tom Gardner

So, a business that operates in the US but pays dividends to the owners in Bahamas gets all the benefits of roads, laws, public works, and sends all profits to a tax haven? If corporations are 'persons' with freedoms, their residency in this country DOES come with tax obligations. I'll grant, though, military draft exemption.

Reply to
whit3rd

n Bahamas

dency in

ry draft exemption.

I'm sure that if it came to it corporations could also be "drafted" to prod uce war material

Reply to
Lasse Langwadt Christensen

On Saturday, 27 January 2018 10:51:35 UTC, Lasse Langwadt Christensen wrot e:

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they were last time

NT

Reply to
tabbypurr

"Last"?

Reply to
krw

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