How do you manage wholesale orders?

[Bubzeebub]

What are the best practices for handling wholesale orders? Is it normal to ask for payment up front or on credit?

[Raymond]

Get a loc if your order is really large. Otherwise, 30% deposit is general practice.

[RedWolf]

It depends on the standards for your industry. My felling is that you should not offer NET30 or other credit terms until after you have an established relationship. This does vary though. If you are going to seriously consider wholesale, you need to work up all your wholesale terms not just payment. The following is a sample to help you get started. It is geared towards the high end art/craft galleries so uses the industry conventions for that market. Try to get the terms from othe companies in your market and modify them to fit your circumstances if you can.

Wholesale Terms and Conditions
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Minimum Order Size – Since a full display is needed to properly showcase a line of jewelry, we require minimum initial orders. Our products are divided into two classes for the purpose of minimum initial orders. For items below
$50 wholesale, the minimum initial order size is ten (10) items. For items priced $50 wholesale and above, the minimum initial order size is five (5) items. There is no minimum on reorders from within the same item class.

Payments - Pro Forma payments are required for all new customers. Acceptable payment methods are listed below:
* Discover, Visa, and Master Card
* COD paid via Money Order or Cashier Check ($10 COD fee will be added)
* Money Orders and Cashier Checks
* Orders by personal or business check are held 14 business days after deposit

NET 30 terms will be considered after customers have placed $1000.00 in orders. Interested customers can request a credit application via email or FAX.

Delivery Time - We will try to accommodate preferred delivery times. If our production calendar is full, we will contact you for an alternate date. Please allow at least 2 weeks for delivery at most times. If you need a rush
delivery, please notify us when you place the order and we will attempt to work you in.

Shipping - We ship wholesale orders via UPS or US Postal Service. We will contact you to confirm shipping charges before your order is shipped.

Returns - I guarantee the craftsmanship of my work. If, for any reason, you are not satisfied with a piece you may return it within one week for exchange or credit. I will refund the cost of the order if all pieces are returned in
original condition. Shipping charges are not refundable.

Stock Rotation - After six (6) months, you may exchange unsold pieces for new designs. Exchanged pieces must be undamaged and in original condition. Normal shipping charges apply.