Problem With Payment For Cupcakes....

Business By YummyChoo Updated 23 Sep 2010 , 1:07am by indydebi

YummyChoo Posted 22 Sep 2010 , 3:30pm
post #1 of 23

Hi Eveyone, need some advice. Im baking cupcakes for a large event at a high street store and ive sent them an invoice for the cupcakes, she goes she gonna get a cheque written out to me, the event is tomorrow... shes come back today saying its will take 2 weeks...
What should I do about this? Ive already got ingredients n started baking some...
Im just a bit worried that I will deliver the cupcakes tomo and never see the cheque....

22 replies
cakes47 Posted 22 Sep 2010 , 3:41pm
post #2 of 23

No money . . . NO cakes/cupcakes!!!!
You can freeze the ones you've already baked for another time.
When did she place the order? Did you tell her she needs to pay before delivery?
I wouldn't take a check from her now. Bank transfer or CASH only or you'll
be very sorry you let her have them.

CakeDiva101 Posted 22 Sep 2010 , 4:05pm
post #3 of 23

I agree with cakes47. No money, no cakes ( cupcakes). I get 50% non-refundable deposit at the time the order is placed and the balance must be paid 10 prior to the event. If the clients are serious, they will have no problem with that. And I have them sign I contract also. Protects you and them.

YummyChoo Posted 22 Sep 2010 , 4:07pm
post #4 of 23

Thanks for the advice guys, I think its partly my fault as this was my first large order.. Only confirmed yesterday, I sent her an invoice assuming she would send out a cheque yesterday so I would have it by now.. but she said it takes 2 weeks! What should I do?

tootie0809 Posted 22 Sep 2010 , 4:12pm
post #5 of 23

Tell her you need cash in hand, no check, by XX time today or absolutely no cupcakes will be delivered. Explain that you won't even start baking until they are paid in full and give her a time deadline and stick to it. If you deliver them before payment, you most likely will never be paid.

TexasSugar Posted 22 Sep 2010 , 4:32pm
post #6 of 23

Some businesses have to get approval before checks can be written, and then sometimes there is a wait period.

I would talk to her and see if there is any way you can get the money, maybe they can take it out of petty cash on delivery.

Did she know you needed payment in full at pick up when she ordered the cupcakes?

online_annie Posted 22 Sep 2010 , 4:32pm
post #7 of 23

Sadly, No Payment, No Cake. She should understand, as that concept is well understood. How well would that go over if you went out to a restaurant to eat and when the bill came you told them it would take 2 weeks for a check. lol. Too Funny! Same concept.

cakesdivine Posted 22 Sep 2010 , 4:56pm
post #8 of 23

Unfortunately when you deal with a corporation which most high end stores are corporations, the payments for invoices are generally only drafted on set days of the month, generally on the 15th & 30th of the month, therefore you are stuck dealing with their payment procedures. I no longer do corporate events unless they order months in advance just for this reason. That is just too much money to front for a business that can easily afford to pay prior to their event. I am not a finance company...I can't float an order, my volume isn't large enough to warrant it.

MalibuBakinBarbie Posted 22 Sep 2010 , 5:03pm
post #9 of 23

Without knowing who you are working with, here are my thoughts... If it is a reputable company, I do not think you will have a problem collecting your payment. The delay is probably just part of their process. Most companies have an Accounts Payable voucher/approval process that they must follow and exceptions to that process are only done under rare circumstances. I am guessing this is where the 2-weeks comes in.

If your invoice indicates that payment due before or on the day of delivery, I think it is then up to the representative you are working with to ensure that indeed happens.

Good luck with this one. I hope it works out favorably for you.

jason_kraft Posted 22 Sep 2010 , 5:10pm
post #10 of 23

She should be able to pay you out of petty cash, or if all else fails she can pay out of her own pocket and file an expense report with her company.

Auryn Posted 22 Sep 2010 , 5:14pm
post #11 of 23

If it is a large reputable company she should be able to give you a confirmed po number.
This PO number is proof that they put in for the payment and you will get your check.
Without this PO number I would not deliver anything.
Additionally if it is a large company they should have enough petty cash to pay for it and deal with the reimbursement in house later.

gatorcake Posted 22 Sep 2010 , 5:16pm
post #12 of 23

Not a simple as No Check/No Cake. The OP has already stated that this was not explained when the order was placed. If I placed a corporate order and the business did not tell me when payment was due, then sent me an invoice, I certainly would not expect to have the balance due at pick up. I have the invoice so I will send payment, no reason to expect otherwise.

Frankly it is ridiculous to think a client will know when payment is due, if the owner does not establish at the time of the order, when final payment is to be made. Had this been mentioned at the time the order was made one of three things would have likely happened: 1) the client would have said it takes two weeks to process an payment (fairly standard practice) requiring the owner to work out payment options or 2) the order would have been cancelled, sorry can't pay at delivery, 3) the client would have paid for it and then be reimbursed by the company. All 3 depend upon the client knowing that payment is due. I

t is simply bad practice to go back to a client after they are making pick up arrangements and say hey pay me or no cupcakes.

trishvanhoozer Posted 22 Sep 2010 , 5:21pm
post #13 of 23

I use a very good contract and have them sign. If there are any circumstances that cause them to have to deviate from the contract, we put it on the contract, both signing with initials where it was added. If I had committed to doing the cupcakes, payment or not, I would do them but I would make sure that in the future it was pre-arranged and if payment would be late or on a certain date after the event, I would have it in writing and confirm their process. I do "free" cakes a lot for local businesses and they usually send me enough business to make it worth the "free" effort. If this were me, I would deliver the cupcakes as agreed, but have a contract for signature stating that they received the product and payment would be sent within 30 days. That way, you are covered if you really want to do something about it once the time frame has expired.

ccr03 Posted 22 Sep 2010 , 5:41pm
post #14 of 23

Ditto @gatorcakes!

If you stick to a no money/no cake thing, YOU are going to be the one that looks unprofessional and inexperienced. If you didn't tell them at the START of the ordering process that payment is due upon reciept, then that is too bad on your behalf.

Be professional, do the order and wait for your checks.

ccr03 Posted 22 Sep 2010 , 5:42pm
post #15 of 23

Oh, and for the people that say - get "petty cash" the employee can pay and then get reimbursed. Don't you think if those were options - the employee would have brought them up??

jason_kraft Posted 22 Sep 2010 , 5:51pm
post #16 of 23
Originally Posted by ccr03

Oh, and for the people that say - get "petty cash" the employee can pay and then get reimbursed. Don't you think if those were options - the employee would have brought them up??

I certainly wouldn't volunteer these options unless all other options were exhausted. It's easier (and less paperwork for me) if the company pays vendors directly as opposed to paying out of my own pocket and filing for reimbursement.

That said, I agree that a PO number from the company and a signed contract should be sufficient as a guarantee of payment.

ccr03 Posted 22 Sep 2010 , 7:07pm
post #17 of 23

That's exactly why I am saying NOT to offer them as options.

jason_kraft Posted 22 Sep 2010 , 7:22pm
post #18 of 23

To clarify, in my previous post I was speaking from the perspective of the customer. I work for a large company (F50), and as an employee of that company I would rather have the vendor accept whatever the company payment terms are. If for some reason they won't accept the terms and the order is critical, that's when I would go to the backup options of using petty cash or paying out of my pocket.

From the vendor's perspective, it's actually better if the customer's company pays upon receipt from petty cash or the employee pays (and gets reimbursed later), since they get the money immediately instead of having to wait.

fairmaiden0101 Posted 22 Sep 2010 , 7:54pm
post #19 of 23

Perhaps it was the OPs mistake not to have mentioned when payment was due, but come on ppl, when you purchase an item like food you should know you must pay for it first before taking it home...that is not bad practice, that is common sense! If anyone says "Gee I didn't know I needed to actually pay for the cake before I ate it." Is just full of rubbish!

jason_kraft Posted 22 Sep 2010 , 8:19pm
post #20 of 23
Originally Posted by fairmaiden0101

Perhaps it was the OPs mistake not to have mentioned when payment was due, but come on ppl, when you purchase an item like food you should know you must pay for it first before taking it home...that is not bad practice, that is common sense! If anyone says "Gee I didn't know I needed to actually pay for the cake before I ate it." Is just full of rubbish!

Food service companies that regularly cater to businesses routinely offer terms that allow the business to pay 15-30 days after the food is delivered.

kansaslaura Posted 22 Sep 2010 , 8:36pm
post #21 of 23

I've worked with companies and schools with 15-30 day billing like that. It's common--I don't see the problem.

This isn't neighbor Nell picking up a cake for little Timmy's birthday, this is a corporate customer.

Have an invoice ready when the pick up or you deliver. Have the person who accepts the order sign and give them a copy and you keep a copy.
I'd glady accept their terms to be on their radar for other large events. Next time you'll know the way the game is played.

hhcakes Posted 22 Sep 2010 , 8:41pm
post #22 of 23

Most businesses have a limit on petty cash too and if your order is large, petty cash is not allowed to be used. You have to invoice the company. It's a case where you should have checked before you took the order. Next time you'll know.

indydebi Posted 23 Sep 2010 , 1:07am
post #23 of 23

I'm with KansasLaura on this one. If you're going to deal with corporate clients, there are some things you need to work with them on.

When I did caterings for Macy's (avg'd about 2 a month for special promo's in their stores around town), they asked up front about setting up an accts payable acct with me. Come on ... it's Macy's Dept Store! I've no qualms about getting paid! thumbs_up.gif They always paid on time, like clockwork.

I had quite a few other corporate accts that I did this for.

that said .... I also had certain circumstances in which they had to arrange payment in full in advance, because of the size of the order. I wouldn't front the money for a $3500 Christmas Dinner catering and not get paid for 30 days. But I sent them an invoice in advance, which my contact person would run thru their accts payable dept and have a check for that I could pick up in advance.

The key was explaining how it needed to work in advance.

Being a former Accts Payable person, let me share that it's not as simple as just writing a check. I had one vendor at one place I worked, who liked to stop in and get his check "now". I finally asked him, "Do you know how long it takes me to write a check for you?" (no, how long?) "48 minutes!" There are approvals, processes and system requirements that need done. It's not like pulling a checkbook out of your purse and writing one out. It's a real PITA to stop everything to run ONE check out of schedule.

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