Clients Not Paying Vendors

Out of context: Reply #9

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  • noneck0

    You should never run the vendor's billing through yourself. This is horrible, horrible advice that could easily bankrupt you. Why on earth would you assume the risk and liability of your client's billing?

    What happens if the client stiffs you? Are you going to pay out of pocket for your client? If not, the vendor is still going to be pissed, this time at you. Besides, the other vendors usually have a much better ability to absorb the loss than you do, and are in a better position to go after the deadbeat client than you.

    If we're talking about printing (which is most likely), most printers are happy to set up an arrangement where you get them to quote you a job and tack on whatever margins you want (10-25%, whatever you ask for). They'll send you a quote with your client's name on it, that you provide to the client. You get the client to agree, and you connect the print rep to your client. You let the printer handle credit checks, billing, deposits, etc. The client pays the printer, the printer delivers the job to the client, cuts you a cheque for your markup, and hands you a nice stack of samples from the job. This way you get to mark it up, but you don't have to assume any risk on the job, and everyone's clear about the relationship.

    I've heard stories of freelancers and small agencies getting stuck with $40,000.00 of printing because the client bounced. Tough shit, the printer doesn't care. How much money could you afford to eat on a job if the client decided to skip out on you?

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    • whoah...good point...fuckmonospaced
    • I've handled the print vendor on behalf of my clients several times and got lucky with accurate work.monospaced
    • +1
      though shellie's cash-up front works around that. (make sure the cheque clears.)      monNom
    • had a buddy lose everything because of this exact practicejmilligan
    • I stand corrected, sir.Continuity
    • +1000 on this. DO NOT put yourself on the hook for the vendor costs, even if your going to make a little markup.Mr_Right
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