To members that have experience in dealing with retailers as distributors
Like it is mentioned in the title, I have an opportunity to become a distributor for a product in my area. In the last days I become more familiar with anything that surrounds this kind of work but I have still lot to learn and maybe you can help me on something.
Today I was asking myself: Ok, I have a pricing strategy but how much to ask as "down payment" when a retailer is interested? I mean what is the amount I should ask for BEFORE placing an order with my manufacturer? Full amount? 50% before shipping and 50% after delivery ?
I don't want to put myself in great financial risks on the deals. I don't want my retailers to say something like "Well you know what we changed our mind and don't want your products anymore" when they receive their shipment. I would be stuck with the products and fund the deal with my own money. No good for me!
By the way, this is for small regional retailers, not the Walmart or Costco giants that has a hard time paying their suppliers on time.
What is your experience regarding this and what would you do?