S: Sorry, we don’t give Early Payment Discounts…
B: We have a new policy on invoice payment and we are asking all suppliers for Settlement Discounts
S: I appreciate you have to ask, but I would like to explain why it is not going to happen with our business
B: So, you are refusing to cooperate with one of your biggest customers?
S: Cooperation is not the issue. I could say ‘no’ and walk. But, given our relationship, I felt you deserved an explanation
B: Well, It better be good…
S: As you know, based our £1m annual sales to you, a 1.5% settlement discount would be £15k
B: So, no big deal…
S: Hang on, there’s more... Being an ethical company, we would have to offer our other UK customers the same discount, amounting to £2.3m on our £150m sales
B: So you are not interested in growing your UK business
S: I didn’t say that. Because we are a global company we would have to offer the discount worldwide, amounting to £38m on our £2.5bn turnover, so you can see why it’s not going to happen.
B: I don’t know….
S: So if your company needs a line on our invoices reading 'payment discount', no way. However if you simply want to earn an extra £15k on our business, there may be ways…
Buyer: Sounds interesting…
SuperNAM: Great, now let me tell you what we want…
Adventures of SuperNAM, Part 13
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