Home – New Forums Money matters Help – payment term is COD but asking for money before delivery

  • This topic is empty.
Viewing 13 posts - 1 through 13 (of 13 total)
  • Author
    Posts
  • #979531
    EmbalmSkincare
    Participant
    • Total posts: 459
    Up
    0
    ::

    Hi everyone,

    I have ordered a second lot of labels from the same supplier.

    The first time, they’ve sent me a physical proof but this time only via email.

    There were a few problems with the colours etc the first time around (just to give you some background info).

    I have just received the invoice for the second lot of labels and the text in the invoice reads “If you are able to pay this promptly so we can post your labels.”

    I thought that a bit odd as I remembered that I received the labels first and then paid the last time.

    Now, I open the invoice and it says Terms of Trade: COD.

    I’m wondering now whether they have had the same problems with the colours again and this time weren’t willing to match it and just get me to pay before I receive the delivery.

    What do you think of this?

    Thank you in advance!

    Regards,
    Mel

    #1114979
    Johny
    Member
    • Total posts: 840
    Up
    0
    ::

    In my business I deal with a lot of product sampling.

    Admittedly I am in a different market to you, but the general principal is still the same.

    Simple fact is this supplier got it wrong the first time so who is to say they didn’t get it wrong again. Plus computer screens lie and colours do not always match the real product. If it were me, I would definately be getting a physical sample.

    Would also wonder if you actually told them of the problems of the previous order and what was their response to that.

    And finally, I am always suspicious when someone needs to change the stated delivery terms.

    #1114980
    EmbalmSkincare
    Participant
    • Total posts: 459
    Up
    0
    ::

    Hi John,

    Thanks for your response!

    I have now replied, asking for delivery of labels and said that I’ll pay COD as they invoice states.

    Hopefully, that’ll do.

    Regards,
    Mel

    #1114981
    kathiemt
    Member
    • Total posts: 1,167
    Up
    0
    ::

    If they say COD then that’s what it should be. Perhaps they’ve had problems with people paying after delivery.

    Let’s hope they got it right this time round for you. Everyone can make an error but it’s the willingness to correct things that helps keep a business in business.

    #1114982
    marketingweb
    Member
    • Total posts: 625
    Up
    0
    ::

    Not sure of your exact question, as your topic didn’t seem to match your post content……

    The term COD is a difficult one, and as you know literally means Cash On Delivery.

    Years ago, when I was a kid, the post office had a service that I think is no longer around, where you literally paid for your goods to the postman or at the post office on pickup, and the money made it back to the sender somehow – this was before credit cards were so popular.

    These days, freight companies don’t offer this service of collecting the money, so unless a supplier is delivering personally, something has to happen first – either you pay first and then they send (Prior To Despatch/Delivery) or they send first, then you pay (when you get around to it, hopefully under their terms). Since there isn’t a cash collection service at time of recieving goods, businesses can’t rely on someone paying immediately the minute they recieve it – it just doesn’t happen.

    SO, even though it’s not technically correct terminology, i’ve found that COD generally means “you pay first, then they send”. Payment due immediately after you recieve it is normally called “7 Days” which literally means a week to get them the money, because few will pay immediately if they haven’t paid upfront. A full account will generally be “30 Days”

    I’ve experimented with the term PTD instead of COD but no-one knows what it is. Another possible one is PTP (Prior To Production). So these days just write “Payment required prior to despatch” if that’s what i’m after.

    Now as to potential quality issues etc, this is a separate issue than payment! Colour matching is a whole different story, and colours should be specified in technical terms such as Pantone’s etc, NEVER matched against your computer screen – what’s to say your screen isn’t way out and displaying things extra dark or light, and nothing like the file “really” is on everyone else’s computer? A good print supplier should however rectify genuine issues regardless of whether you have paid or not. It’s likely the risk to them of you not paying or them having to chase you is far greater than your risk regarding quality, if you aren’t a regular customer.

    Matt

    #1114983
    marketingweb
    Member
    • Total posts: 625
    Up
    0
    ::

    Also to further add..

    I’m not commting anything on behalf of any supplier, but….

    1) It’s NORMAL to send a email proof for a repeat job. Because they will have the original paper proof on file to match against. You aren’t supposed to be checking the colour visually for tone or brightness or whatever off the email proof if that was done last time – you are basically just checking that yes, this is the right job you want printed, and there are no copy changes etc.

    2) If you had concerns last time about colour, you should have insisted on a paper proof this second time, OR raised the concens before the order was printed – presuming there is an issue because they want money is a bit out there to me. But if you are concerned, ask them.

    3) If you got them first then paid after last time, sounds like one of the following:
    a) They broke their own rule last time to your advantage, but aren’t this time; or;
    b) They have changed their policy due to being burned too often; or;
    c) You have been identified as a slow payer and this is a polite way of covering themselves – no business likes to chase money.

    If it’s C then that may be due to different points of view re the last order. But it’s just as likely A or B. From businesses i’ve worked in, many have loose systems re payments, and tend to let stock go out they shouldn’t against their own policies, but it either only happens sometimes, or they realise it’s and issue and then tighten up on things once they get to the point of taking good advice.

    Matt

    #1114984
    Past-Member
    Member
    • Total posts: 1,815
    Up
    0
    ::

    You mentioned that the colours weren’t correct first time round. So this is just a note regarding proofs and colours.

    What you see on an email proof is not necessarily correct. Every computer monitor uses a different color profile based on RGB and reflected light. Designers and printers usually use a CMYK profile. The colours will be different. The type of paper also affects the inks because of the absorption rate.

    If you ask for physical proofs they will unlikely be on the exact paper because the whole printing process is required for either one or for 1000, if doing a large production. And to do a proof is expensive. Small quantities on digital printing now are determined by how the operator has tweaked the cmyk settings, or not, or if new inks have been placed in the physical printer.

    In the days prior to computers, physical proofs were a very laborious process. Each plate had to be laid down separately and the colours could still miss.

    Spot colours can be more accurate if they are mixed and checked solely for that print run. But the manual labour is extra, hence the extra in costs nowadays (different to many years ago).

    More about colours here … http://bit.ly/Lv6Ntr

    .

    #1114985
    EmbalmSkincare
    Participant
    • Total posts: 459
    Up
    0
    ::

    Hi everyone,

    Thanks so much for your replies!

    I have spoken to the company when I received the email proof as I was worried so I called them and was told that they will go ahead with the print run and contact me if they come up against any problems.

    After I received the invoice on Friday and got in touch with them regarding a physical proof I was told that the first time the physical proof was a courtesy and would usually be $50. Additionally to that I was told that the whole lot of labels are now already printed and therefore the job is completed.
    I then said that was fine with me and to please send the labels, I would pay COD as the terms of trade on their invoice states.

    Matt: No, it’s not C :-) more likely A.

    Thank you!

    Regards,
    Mel

    #1114986
    EmbalmSkincare
    Participant
    • Total posts: 459
    Up
    0
    ::

    so, they are still asking for payment prior to delivery.

    I guess I gotta bite the bullet, pay, hope for the best and look for a new printer.

    #1114987
    kathiemt
    Member
    • Total posts: 1,167
    Up
    0
    ::

    Whereabouts in Melbourne are you? I use a very reliable and reputable printer that’s based in Clayton. I see him every week at my BNI chapter and he certainly gives me what I’ve ordered before I have to pay for it. In fact, he did a number of booklets for our whole chapter and delivered them today and said he’d invoice us all separately later. I’m happy to give you his details if you’re interested?

    #1114988
    EmbalmSkincare
    Participant
    • Total posts: 459
    Up
    0
    ::

    Hi Kathie,

    That would be great, thank you!

    Regards,
    Mel

    #1114989
    kathiemt
    Member
    • Total posts: 1,167
    Up
    0
    ::

    I’ll PM you.

    #1114990
    EmbalmSkincare
    Participant
    • Total posts: 459
    Up
    0
    ::

    I think I worried a bit for nothing… The labels arrived last night and look exactly like the first order.

    But I’m still looking around for a new printer as the green doesn’t look very natural on my labels.

    Thanks everyone!

    Regards,
    Mel

Viewing 13 posts - 1 through 13 (of 13 total)
  • You must be logged in to reply to this topic.