[mws444]

Originally Posted by GTAHVIT

wow, what a crazy industry.... so do you normally operate on a Net 30? or pay on deliver?

I'm always very curious to learn how different industries work....

I'm work for a large defense contractor... and that learning curve was very steep.. coming out of the Navy..

I've leaned a TON about the automotive industry both the Manufacturers and the aftermarket...

I'm amazed at the differences between commercial and federal work... I'd like to make the jump at some point....

Time will tell.

Seems like the one common theme is the relationships.... maintaining them is crucial.

Usually it is net 30, when things are really tight it is upon delivery but for a discount. The Government is the worst payer of all, usually 90 to 120 days for payment from the military sales. I don't deal with them anymore.

Personally I would rather give a 1% discount for quick pay than borrow money from a bank at 9%. Once you open a line of credit they trap you, requireing your sales receipts to go to the line payoff then you have to borrow just to make payroll. They also charge for every payment and draw. In a sense you are now working for them.
I went without much more than a meager living for 20 years to get where I am at now. I know others who hit the banks and got bigger faster but they are still borrowing, while I am putting the interest they pay thier bank in my business.

Yeah, relationships are important, just never lose sight of the fact that no matter how much they like you they will buy from your competitor for a nickel less tomorrow. Business is business now days. Quality and service however will get you a long way.