Digitizers do you offer TERMS to your clients?

Robert Young · March 1st, 2012, 11:46 AM

Do you as a digitizer offer net 30 terms to your clients or you cc or paypal or prepay only?

powerstitch · March 1st, 2012, 01:01 PM

Prepay in the beginning.

Terms after 3 months.

gnizitigid · March 1st, 2012, 01:35 PM

For me payments after design is approved and sewed properly

Payments after 7 days or 15 days

Robert Young · March 1st, 2012, 02:12 PM

so does that mean that you DON'T take clients that are larger, only want terms.. pay net 60 or 90... and short pay as they feel appropriate because the PO they entered themselves at the beginning was not correct??

Robert Young · March 1st, 2012, 02:14 PM

I say this because our clients enter their OWN orders.. they enter a PO if it is important to them... but a couple of the largest franchises out there will not pay if a PO is not entered or is incorrect.. .not sure how WE would know if the PO YOU entered is incorrect?? but anyway, that is reality..

powerstitch · March 2nd, 2012, 02:31 AM

Most inquiries will say they are a big company doing 20-30 designs daily BUT at the moment season is low....which is a pure lie 99% of the times.

This is why we don't look at the size of the company because we will not give credit no matter how big they are. Infact theres a bigger chance of them cheating you if they are a bigger company because of higher volume.

We have secured 3 big customers in the last 6 months who started of by paying in advance by paypal when they order. We process the order and send it back to them within 24hrs. This worked very well for us because there is no risk involved for us or the client. The client will pay us say $15.00 in advance....thats all they risk and that is not much to risk if they are seriously looking for a good digitizer.
After 3 months of advance payment, we then monitor and offer terms to the customer but not more than 30 days.

We have been cheated many times where the customers dont pay when they are billed end of month. In that month they would have done about 10 designs, so its not that they didn't like the quality or service but its purely for free designs. Im sure many other digitizers have experienced the same and many still continue to offer terms and free designs but we don't anymore. Everyone has their own way of selling but we have learnt our lesson.

I am yet to post the company names of customers who have cheated us in the past for other digitizers to be aware of them.

Robert Young · March 2nd, 2012, 08:24 AM

thanks Powerstitch. I think your statements are pretty true for the digitizing market. Fortunately most in the industry, Embroiderers and Distributors are honest and pay on time, but there are a few as in any industry that do take advantage for sure.

We dont have any 800 lb gorillas in our customer database but when they belong to a franchise then lots of Mom and Pop shops can become ONE combined billing pain. Individually they are nice clients and know embroidery, but I am guessing they dont realize what the payment side of their franchise is like for the companies that do work for them.