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I primarily do direct mail which is tangible. But the margins are thin and postage is such a big part of our cost that if a customer was going to skip payment w
by jraby3 4y ago
I primarily do direct mail which is tangible. But the margins are thin and postage is such a big part of our cost that if a customer was going to skip payment we’d need 10 new orders to cover the loss.
So it makes sense to never extend credit.
I do think it’s very industry specific and food / retail as one of the worst.
- ThunderSizzle 4y agoWhat is direct mail? If that's rhe equivalent of UPS/USPS, then that's a service, not a tangible good. A tangible good would be something more like a part used in a manufacturing process, which is where the commonality to food comes into play - food tends to have many ingredients that come together into a final product - but anything following this tangible good line, from my experience, will follow these terms. The reason kind of seems to be to give more flexibility to the supply chain. If everyone required payment upfront to get items to shelves or lots for customers to buy, then the risk goes more fully on the last link in the chain. It appears this pattern began to spread the risk to the entire chain.
- jraby3 4y agoDirect mail is junk mail. I help the dentist, roofer or gym in an area send advertising snail mail to the homes near them. Efile there is a service element, we also print the ad and send it. So it’s definitely also (and primarily) a product business.