Orders From University Or Large Business?

Business By OneCreativeCookie Updated 12 May 2011 , 5:51pm by OneCreativeCookie

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OneCreativeCookie Posted 11 May 2011 , 12:25pm
post #1 of 3

I have a home-based (fully inspected/licensed/insured) cookie business. Recently I had an inquiry for a very large cookie order ($2000+) from a university. Normally, I would require a non-refundable 50% deposit to hold the date (it is a full week's work for me), and payment of the balance 10 days prior to the event. The university required me to do a bunch of paperwork to become a vendor which included agreeing to their NET30 payment terms. Fortunately for a variety of reasons, it turned out that the order was significantly reduced and down to a level that I feel comfortable doing on NET30 terms.

For the future, I'm wondering how to handle orders for large businesses/universities that require net30 payment terms. Do I get a signed contract for the order in lieu of the 50% deposit and 100% prepayment? How has anyone else handled this issue?

2 replies
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cai0311 Posted 12 May 2011 , 5:22pm
post #2 of 3

PM indydeb. She has posted about this before but since the search option sucks on Cake Central you won't be able to find it.

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OneCreativeCookie Posted 12 May 2011 , 5:51pm
post #3 of 3

Thanks for the hint icon_smile.gif This one was a really hard topic to search for!

FWIW, we used a Purchase Order and I now have a better understanding of the binding nature of a PO. I didn't need the deposit to purchase supplies or get started on the work, I just wanted to be sure they would not walk away from the order once it was placed.

Thanks again!

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