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Hi

I have a large client who operates the way you do. They also provide the fridges that hold their stock in their client’s premises. If you have the capital to operate this way, it really can help grow you business, because as you say, it makes your product more appealing to the business.

This is how they operate.

1. A simple consignment agreement, looks a like an invoice. States the amount of stock on consignment, the price the business is required to pay per unit if that unit is not returned within 7 days of you requesting it to be returned. This consignment agreement is set at the stock level you and your client agree that they will hold.

2. When the stock is replenished, in their case by a sales rep – but could be by online order or how ever, they are then invoiced for the stock that is replenished.

That way the client only ever gets charged for stuff they have sold, you have an agreement that allows you to demand return of stock or payment if the relationship sours.

regards

D