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Becoming a vendor for dealerships.fact & fiction


Guest Tintwerks

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Guest Tintwerks

Alright,

being a new business owner and trying to shorten the learning curve, my question is.Does anyone have some info on becoming a vendor for car dealerships and getting them to cut a check(Timeline).What I can do to get paid as quick as possible from some of the big dealerships.I have added terms and conditions.Payment due within 30 days or there is a 2% finance charge until paid in full.Fiction or reality?.Can I enforce that?.

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I hate dealership work. That being said, I have many dealer accounts. I do offer them a discounted price....not much though.

I give them all 15 day terms. I've never tried to enforce any kind of penalty or late fee. I just call if it's near 30 days and I haven't seen payment.

Fact is every dealer is different, most of the time price is number one for them.

I am more than my competitors however I try to offer them the easiest most hassle free experience and they keep coming back.

Also, if you want to keep a dealer do it right the first time every time. No come backs or issues, they will just call the next guy.

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Don't bother with 30 day terms. 

 

Most organized dealers pay Net 10th Prox. (pay by the 10th of the month approximately) 

A couple of pointers:

 

You should submit individual invoices immediately.

If the car sells or customer leaves without recording your invoice as cost to the vehicle, it will be hard to get paid.

 

Have your statement (showing all your invoice numbers you expect to get paid for) to the dealer by the 5th of the month. 

Dealers are usually closing all car deals and adding up the expenses and profits at the end of every month. 

Accounting people have to promptly prepare 'end of month reports' (that include all bills) to show how profitable the month was.

 

Dont call them until the 20th, however, be sure your easy to contact in case they have missing invoices (very common).

Invoices occasionally get lost or misplaced. This is why you need a statement that shows what your expecting to collect so they can compare to their records. 

They will call you if there is any discrepancy.  

 

Whether you tint a car on the 1st of the month or the 31st, you should be paid within the 10th - 20th of the following month. 

 

Smaller dealers may do it differently. This is pretty standard for the corporate guys.

I find they pay faster when you accept credit cards. (I think the big guys like the points).

And NO on the enforcement, you shouldn't do that... try to hit the dealer with a finance charge and the controller will more than likely boot you.

Always be real polite to the accounting people. I find they pay faster when they like you.  

 

I hope this was helpful.

Good luck.  

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Guest Tintwerks

Hey Hugh,

 

Thanks for the billing insight and too my enforcement question..Dealer work can seem a bit (not worth the effort) at times.I am in agreement on the accounting relationship advice.

 

One of the dealerships did not pay for almost 60 days on 3 three cars.There accounting department gave me a bit a grief on the my sole proprietor status using my DBA name, and putting applied for in the TIN on the W-9 form.

 

Thanks again

Christian

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One of the dealerships did not pay for almost 60 days on 3 three cars.There accounting department gave me a bit a grief on the my sole proprietor status using my DBA name, and putting applied for in the TIN on the W-9 form.

 

Thanks again

Christian

 

If you are a sole proprietor your social security number is your EIN ..... And any accounting office willl appropriately hold payment without a proper w9 .....

and just fyi... EIN numbers are given out instantly online....  

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Guest Tintwerks

Thanks again.

I was aware of the SS being my EIN. The ford dealership is just notorious for dragging there feet.Was not aware of EIN instantly online.Huge overlook! Taken care of now. Thanks again.

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I sell film to a number of installers that their primary business is car dealers.  They are constantly chasing down money.  Once they learn how the dealers operate and the tricks the dealers play they are able to work within the system.  Good luck and let me know if we can be any help.  We are the authorized Global distributor for South Carolina

 

Richard

314 993-8468

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Guest Tintwerks

Thanks Richard,

You are correct it is a song and dance. Hopefully cash flow gets better and they are a secondary income.I have used your films before in Nashville,Tn.On a trial bases.they do heat shrink very well.

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