What Every Small Biz Should Know About Net 30 Terms

Do you give terms?

This is a sentence you’ve heard or will hear if you are in the wholesale business. But, what does it actually mean? The phrase gets casually thrown around as if everyone has a clear understanding of what it means.

First, let’s chat about  Net 30 (Trade Credit) in general terms. It means you take an order and get paid in full in a set amount of (30) days.

If you run your Small Biz on an all “cash-basis” extending credit can be daunting. You certainly don’t have to do it either. It’s common practice to run a credit card when the order is shipped. You get instant satisfaction and semi-instant payment from your CC (Credit Card) processor.

Why should you ever extend credit? Well, there are larger retailers that “only” do business on Net 30 terms. Providing trade credit to the select clients can be a way to position your company  for growth. If you want to grow, it can be tough to stay on a “cash-basis.” Not impossible, just tougher. (more…)

What Every Small Biz Should Know About Pricing Their Product

Where do you want to sell? Are you planning on selling Wholesale or Retail?

This is where small businesses get screwed up. Most Small Biz owners who sell on Etsy or their own domain think you take the cost of the product, double it and that’s what it sells for. They even may call that their “Retail” price.

They may even go to other retail sites of “competitors” and think they’re “over- priced.”

They may well be, but, let’s look at the larger picture of Retail Reality. If you want to grow your Biz beyond Etsy and your own Domain.com, then  you’ll have to think about that from the start.

Let’s say your product cost you $2.36, plus your general overhead of 15% (.354) =$2.72 cost. So, you sell it on your site for around $5.50.
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