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Do you have accounts for frequent customers?

post #1 of 11
Thread Starter 
Hi,

I just got an order for a cake and if they want to set up an account for their cakes, as they order 1-4 per month.

Has anybody set up an account with a customer? How do you invoice and charge them? Do they pay online or by mail with a check?

Thanks!
Started my business legally February 2012! Commercial kitchen and all!
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Started my business legally February 2012! Commercial kitchen and all!
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post #2 of 11
Is it a corporate client or just an individual? I wouldn't set up an account for anyone other than coporate clients (because they do everything that way.) I require payment in advance, so I wouldn't change that for anyone other than clients who CAN'T pay in advance due to their accounting system.
post #3 of 11
Thread Starter 
Quote:
Originally Posted by costumeczar

Is it a corporate client or just an individual? I wouldn't set up an account for anyone other than coporate clients (because they do everything that way.) I require payment in advance, so I wouldn't change that for anyone other than clients who CAN'T pay in advance due to their accounting system.



It's a hospital. The ER division. The person who orders the cakes is contracted by the hospital.

I took some accounting classes but cannot remember the protocol for A/R having to do with accounts.
Started my business legally February 2012! Commercial kitchen and all!
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Started my business legally February 2012! Commercial kitchen and all!
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post #4 of 11
Thread Starter 
It might also help to mention they wish to pay monthly.

I am unsure if they know before the month starts how many cakes they will need. So I assume I would charge them at the end of the month?
Started my business legally February 2012! Commercial kitchen and all!
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Started my business legally February 2012! Commercial kitchen and all!
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post #5 of 11
That sounds legit... If they want to pay monthly then they probably just submit their invoices to whoever, and they pay accounts once a month, so they don't issue checks on a COD basis.

Find out how they want you to submit an invoice, they'll probably appreciate one summary of all orders at the end of the month as opposed to separate ones that come with each cake, but you never know..
post #6 of 11
Thread Starter 
Quote:
Originally Posted by costumeczar

That sounds legit... If they want to pay monthly then they probably just submit their invoices to whoever, and they pay accounts once a month, so they don't issue checks on a COD basis.

Find out how they want you to submit an invoice, they'll probably appreciate one summary of all orders at the end of the month as opposed to separate ones that come with each cake, but you never know..



Thank you. I was unsure if it was common knowledge for protocol and didn't want to ask them if I was supposed to know icon_wink.gif

I will ask her how they generally receive invoices.
Started my business legally February 2012! Commercial kitchen and all!
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Started my business legally February 2012! Commercial kitchen and all!
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post #7 of 11
Thread Starter 
Oh and one more thing! What is the typical time given to pay? 30 days? Say I give her an invoice March 31st, do I give her until April 30th?
Started my business legally February 2012! Commercial kitchen and all!
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Started my business legally February 2012! Commercial kitchen and all!
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post #8 of 11
Yes, common practice is net 30 (30 days to pay).
post #9 of 11
I require prepayment for smaller corporate accounts unless I know them. I just get the order and tell them that their invoice will be available on the site within the hour. As soon as I receive the payment, I'll add it to the calendar.

For my wholesale accounts, I receive payment promptly upon delivery, usually a few days.

I have one recurring corporate retail account and I give them 30 days. They can choose credit card or check payment. I don't care.

I have an e-commerce site so all transactions can take place with credit cards right from the site.
post #10 of 11
Thread Starter 
Quote:
Originally Posted by scp1127

I require prepayment for smaller corporate accounts unless I know them. I just get the order and tell them that their invoice will be available on the site within the hour. As soon as I receive the payment, I'll add it to the calendar.

For my wholesale accounts, I receive payment promptly upon delivery, usually a few days.

I have one recurring corporate retail account and I give them 30 days. They can choose credit card or check payment. I don't care.

I have an e-commerce site so all transactions can take place with credit cards right from the site.



Thanks!
Started my business legally February 2012! Commercial kitchen and all!
Reply
Started my business legally February 2012! Commercial kitchen and all!
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post #11 of 11
I don't know the size of your cake business, but an extra 30 days to pay seems a lot for this type of business, you could maybe put on your invoice that your payment terms are 7 days, as this is quite usual for small businesses. icon_smile.gif
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