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Teal Offline OP
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Dr. Pepper is asking for 360 day payment terms in RFP with ad agencies.

Yeah, the soda company that also makes those 1 cup coffee machines want a 1 YEAR payment term....


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1, a scam to get someone to buy in.

2, a scam to get leverage on current contractors.

3, they are in deep Doo-Doo.











4, pay dependent on results?


Anyone trying this should know it is ultimately going to increase costs.
No way someone Is going to carry them for a year without a fee tucked into the contract. Unless, some poor small outfit bets big on landing a prestigious client, then that fact landing better paying ones.


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It's all a Ponzi scheme....


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When 08 hit many saw national brands go to 60 then 90 day terms in industries with 30 day standards. This forced those lower on value chain to extend 120 days. Even if they didn’t many got paid at the 90-120 day mark anyway. Guessing they have liquidity issues or project them and marketing is up near the top of priorities for many. Not a good sign or precedent frankly.

Last edited by gremcat; 11/29/22.
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I’d be happy to give Dr Pepper their 360 day terms, but they would not care for the prices they’d end up paying……


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Originally Posted by Teal
Dr. Pepper is asking for 360 day payment terms in RFP with ad agencies.

Yeah, the soda company that also makes those 1 cup coffee machines want a 1 YEAR payment term....

They are financially strapped obviously. I wouldn't walk but run away from any company that needs a year to pay.






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the entire economy is hanging on by it's fingernails. When it goes, and it will, the collapse will be staggering.


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Originally Posted by Dutch
I’d be happy to give Dr Pepper their 360 day terms, but they would not care for the prices they’d end up paying……

This ^^^^^^ ... I worked for a large manufacturer who had "Net Prox 25" payment terms for ALL of their suppliers. Basically, any invoices received in the current month were paid on the 25th of the following month. Take it or leave it. They were big enough that if you wanted to do business, you took it. OTOH, suppliers always factored the float in their prices. Games that accountants play...


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Mebbe if a 20oz soda pop wasn’t $2.29 + tax they would make money….

Ps…

The Zero sugar Dr. P sucks….


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Over 30 days interest is tacked on. Sitting on my money any longer is like giving them a interest free loan.






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Not all companies that hold back are in trouble. I did contract mechanic work for Henckels McCoy, I think they are one of the largest underground contractors, and it was SOP, 90 days before you get paid. Very painful for a one pony mechanic to carry thousands on a parts and welding supply account. 360 days though, now that sounds like trouble.


Well this is a fine pickle we're in, should'a listened to Joe McCarthy and George Orwell I guess.
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Originally Posted by flintlocke
SOP, 90 days before you get paid. Very painful for a one pony mechanic to carry thousands on a parts and welding supply account.

90 days is very tough for a one man show. Hard to generate alternative sources of cash flow when you are a one man band also.






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The idiot that owns our company has us factoring 100% of our bills.

What does that mean?


Been doing it for over 15 years, I'd love to have the money he has wasted to
Get his money NOW.


Sad thing is, once you get your last outstanding bill, it is expense for nothing. If we had never started, we would be getting paid for past work
Every week or month. Now, we get this weeks money. Minus 10-20%.

It has become a trap. Stop factoring, no money for 30, 60, 90 days.


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Between Pittsburgh and Philthy. The Alabama part of Pa!
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Originally Posted by Mannlicher
the entire economy is hanging on by it's fingernails. When it goes, and it will, the collapse will be staggering.
this ^^^

kwg


For liberals and anarchists, power and control is opium, selling envy is the fastest and easiest way to get it. TRR American conservative. Iowa chapter. Stolen elections have consequences.
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I'm probably going to go up the home equity loan to the max value I can get with the idea that if there is a crash coming soon, loans may be hard to get and I may stumble upon a once in a lifetime opportunity in a home or land.

In 2008 I saw a chance to get an incredible home for a fraction of what I though it was worth, but even with great credit, you couldn't get a bank to give you a loan. That home is easily 3X the asking price now.

If nothing comes up, well - no additional cost to me for doing it.

Last edited by KFWA; 11/30/22.

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Originally Posted by Dillonbuck
......... no money for 30, 60, 90 days.

Welcome to the oil patch.


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Originally Posted by Mannlicher
the entire economy is hanging on by it's fingernails. When it goes, and it will, the collapse will be staggering.


There is a 100% chance the fed keeps raising rates until something breaks, which won't be much longer IMO. The sweet part is the EU is right on track with us, and China is isn't far behind. So cripple 70% of the worlds GDP at the same time will be interesting. At 130% debt to GDP in the US and the EU hanging in ~100%, there just isn't room for any stimulus this time except maybe China.


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Senior coffee @ Hardee's increased from .75 to $1.29 ! FJB !

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Originally Posted by JGRaider
Originally Posted by Dillonbuck
......... no money for 30, 60, 90 days.

Welcome to the oil patch.


Once one is established and running right, it's no big deal.
And the oil patch isn't unique, it's common everywhere.

While you wait for 90 days to come due, pay comes from the jobs 3 months ago.

The issue with stopping factoring is you got paid 80% of what jobs you did
30-90 days ago.

So now, there is nothing, (not a single dime) coming in for 1-3 months.
To a factory.

The owner is a shady corporate raider type.
Buys well capitalized small factories, at good prices. (Simple, smart)
Maneuver the real estate into one of his shells, and leverage the business to the max.

If the business starts paying the debt down, he borrows more.
If it fails. GREAT! He bankrupts the business, let's the lenders clean the
equipment out of HIS building, and rents the space. While walking away
With the borrowed money in his pockets.

He got into this factoring deal when too many things went bad at once,
now he is stuck. Not an office guy, but my mental calculations based off occasional monthly sale numbers and knowledge of factoring puts us at
$3-5million annually lost to "interest".
Not a big outfit, that's quite a bit every year. For something that only payed off for a few months, years ago.


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Between Pittsburgh and Philthy. The Alabama part of Pa!
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