Home – New Forums Marketing mastery Purchase Orders

  • This topic is empty.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • #986810
    Thrive Promotional
    Member
    • Total posts: 146
    Up
    0
    ::

    Checking in regarding the use of Purchase Orders. If you are in the B2B world, do you only take an order with a Purchase Order? If not, what constitutes an order for you?

    #1159715
    Tony Manto
    Member
    • Total posts: 573
    Up
    0
    ::

    Hi Morgan, the whole purpose of an purchase order is so you can track the sale. Who gave it to you, who took it, what day and so on. In my experience, some people take then and others don’t.

    It mainly matters to the person that you take the order from. You can always use the persons name as the purchase order.

    Some companies send you a copy of the order once it has been process as a way of confirmation. The underlining principle here is as long as you have a good order taking process, tracking and delivery procedure, the need of a purchase order is not critical. I would always ask if they want to quote an purchase order or just use their name as the purchase order if they don’t. That way you have a paper trail.

    #1159716
    MissSassy
    Member
    • Total posts: 1,255
    Up
    0
    ::
    Thrive Promotional, post: 184240 wrote:
    Checking in regarding the use of Purchase Orders. If you are in the B2B world, do you only take an order with a Purchase Order? If not, what constitutes an order for you?

    I think the most important part is that they sign whatever paperwork you have designed to protect you and your business. Particularly as your business will need to outlay money to make an order I would be ensuring they pay more than 50% of the order upfront.

    #1159717
    I.T. Guaranteed
    Participant
    • Total posts: 54
    Up
    0
    ::

    Hi Morgan,

    I will not commence a large job with out some sort of confirmation.
    Most of mine will be customers replying to a quote (These days my quotes are formal letters in PDF form attached to an email), but sometimes someone will just ring up and say “I would like to proceed with that quote that you sent. “

    After being bitten (client changed their mind / employee), I will now always request an email confirmation, or a purchase order. It forms a legally binding contract, and once you have that everyone knows where they stand.

    In the programming industry it keeps the line drawn on change requests too. That is both parties know what will be delivered. Any change requests get another quote and require another confirmation / purchase order. I have never had a project get out of hand.

    As a small business myself I don’t give out purchase order numbers – I don’t think I have ever been asked in 19 years of business.

    Hope this info helps.

    #1159718
    John Templeton
    Member
    • Total posts: 65
    Up
    0
    ::

    I regards a Purchase Order as a necessary part of the whole order process. Without one, we don’t begin a job. It’s as simple as that. It’s a confirmation of order and essentially a commitment that the other party is going to purchase your goods/services.

    #1159719
    PineapplePear
    Member
    • Total posts: 83
    Up
    0
    ::

    I use payment of invoice as purchase order. The invoice number is used as the job number and any files relating to that job are numbered accordingly so everything can be linked back to the job.

    When placing business related orders, I always use a purchase order though, so i can put my job number on it, and match back to the relevant job when the invoice comes in.

    #1159720
    arrowwise
    Member
    • Total posts: 641
    Up
    0
    ::

    Purchase Orders are only one part of the equation. For a new client you may need a PO and some sort of other buy in such a deposit as well. For example when you receive a Government Purchase Order you know if you deliver properly payment is certain. Purchase Orders are more of a traditional formality, but present no more guarantees of getting paid (or in a timely manner) compared to a client without one.
    Your specific purchase terms and how you evaluate the risk of new clients is more important that just the PO.

Viewing 7 posts - 1 through 7 (of 7 total)
  • You must be logged in to reply to this topic.