Online payment is also there with my vendor but I don’t take credit from them. Everything is to be bought after payment only.
Yes, I note down daily sales and the amount that I need to pay at the place where I purchase items. I buy items on credit from vendors. Yes, I need to maintain an account of payments with vendors. Otherwise, I would not get to know the transactions. Customer sales are noted on paper, whether it's the sale of a day. Then I make payment to the vendor. I have a single notebook for both.
I make immediate payment to vendors. I purchase materials based on the amount I have. I neither pay in advance nor accept advance payment. If I have Rs.2,000, I purchase materials of the same amount. I create the list accordingly. I know that I only want to buy these specific items because I only have this much money. I don't want to buy anything extra or give anything extra. Yes, it is a quick decision to pay the vendor right then and there. If we have had a long-standing relationship, I will take the materials without making the payment, but the following week the payment will be cleared.
There are about one or two vendors from whom I borrow money and repay it to them. I borrow for a maximum of 1 to 2 weeks, not much. Yes, I borrow according to my capacity. Otherwise, the way they talk to us will gradually start changing. They will rudely ask why I didn't give the money and refuse to provide the material. I know how much I can repay, and based on that, I borrow the money. If I repay it on time, the relationship is well maintained. If I don't, they will say that the material is not available at the moment. If I have already given the money somewhere else, they will mention that I haven't paid the previous amount yet and still want more stock, which is not good.
No, sir I don’t get loans from vendors. I have to make the payment immediately. I don't get a loan. There is a rule that I can take a loan of 10 lakhs or 12 lakhs. I will have to cross a lot of levels to get that loan. I spoke to them but they said that I won't get it on credit. You don’t get it on credit for 2 to 5 lakhs. If you take 20-25 lakhs then you will get it on credit.
No, I don't want to open another shop. I want to renovate this one. I want to put up dummies outside. If there are a few dummies outside, then people can see it. I have thought about it. I will do all this slowly. I don't have a lot of profit. So I am moving forward slowly. It takes a lot of time to do one thing because I haven't taken anyone's support. I am doing it on my own. I don't want anyone's support. Because it's just that there are a lot of problems with borrowing money. It's in the mind that I have taken a loan. It will be fine if it will be my own money and if the sales aren’t that much or if I couldn’t sell saris. If it's someone else's loan then you have to return it at the same time. A lot of people offered me. People from Surat offered me to give me stocks. They asked me to give them 2000 per month and they will give me a stock for Rs. 2,00,000 per month. I said no. If I can't even pay you 2000 rupees a month then what will I do? So whatever I have is mine. I don't do anything that would stress me out.
In both cases, I will keep both. But if I keep it, it's Vendor. I will keep it on the third. Because the vendor is also important. It is also important to maintain a relationship with the vendor. A relationship with the vendor means assuming that I am continuously dealing with them for a particular product. The major vendor for me is a regular vendor, almost daily or 2-3 times a week, continuously. So, how much do I have to deal with the amount of payment I have to pay? For example, if they ask for a payment of 30 days or 60 days, then it doesn't mean that I always have to pay in 30 days. If I have a trial, there is a plus or minus. So, I have to deal with that. So, I am talking about that relationship. Yes, it's a trust-based relationship. With new vendors, there is some advance payment in the beginning. Or we tell them that if there is any specific guarantor or if we feel so. Rest, we deal with new vendors in cash. We get orders on a mass basis.
There are important vendors. In my overall vendors, the ratio is 50%. 50% are regular vendors with whom I work all the time. For returns and defective products, I give them directly to the company. The quantity should be appropriate. The terms are 30 days, 60 days to handle money online. NEFT or RTGS. I don't deal with cash or anything like that.
Yes, I work in debt with the vendor. That too in part. I mean, someone has an advance. For example, you get a credit limit of a gold medal in that. And the same RR cable company stays in full advance. You have to pay it first, then the money comes out. It varies from vendor to vendor. If the vendor says that if you make a cash payment, then you will get an extra CD of 2%, 3%, 4%. So, if we feel that we can work with the CD, then we will do the CD. CD means cash discount. If I make an instant payment, then it is 2%, 2%, 3%. That company gives it to everyone. Sometimes I take it, sometimes I don't. There is no bargaining on CD. CD is fixed for everyone. If a company says that our CD is 3%, then it is 3%. We can bargain on the rate. If the discount structure is 50%, then we will say 52%. It also varies in the item as to how much material we are taking.
Yes, I take material on credit. We take the material from them and then pay them through NEFT after few days. Till now big amount is not paid but if ever it is big amount then they have GST system with them so the amount gets minus from there.
Misunderstanding with the seller. The vendor is in need, and they check the billing accordingly. They check how much sales we make in a month: is it one lakh, 1.5 lakhs, 2 lakhs, or is it 60000 or 70000 rupees? They identify where the problem has occurred and what the reason for it is. I had taken 12000 rupees in cash, but the money ran out. I inform the vendor that the money is gone and ask them to send the Delivery Memo (DM) for this bill tomorrow. Some people do it, and some don't. I feel bad that I don't have the medicine with me. I received a message from the shop that this medicine is urgently needed, but since I don't have the money, I can't buy it now. However, there is a delivery memo, which I can sign and get it. Some vendors provide it, and some don't. For the vendors who don't provide it, we consider the products they have and the numerous companies we can do business with. The products I get from their shop are also available at other shops. I will place maximum orders with the shops that are ready to give me a delivery memo. I ask them to provide me with it. If there is a particular product that is needed in 200 units or 500 units, then I will place the order for that same quantity. I don't place orders above that. Also, we keep in mind that this vendor was not ready to help when we were in need. We give them the genuine orders that we need. For the vendor who helps us, we place an order for 5000 units instead of 1000 units. This way, we also help them.
I call and inform them on WhatsApp that these goods are required. They send the sample. They create a bill and send us the bill on WhatsApp. I send them the payment amount on PhonePe. Sometimes I also make purchases on credit. Later, I pay off the credit and they send me the goods by transport. This process continues in this manner. Now, if I order any unique product, then I have to go there. If they call me to see some new and unique items, in that case, I also visit their place and choose the color and items. Both my wife and I like to see and touch the product before ordering because if I like it, the customer will also like it. I think in that way. That's why I handle everything on my own.
Vendors give me products on credit. Suppose I purchase goods worth 50K. I will pay him 40K or 45K. 5K is on credit. I send that credit amount to him on PhonePe after 7 days.
It happens, if I like something and I don't have enough money to buy it, so I make a compromise. Wholesalers provide products on credit and they also keep a record of it. They send me the amount on WhatsApp as well. I also keep a note stating that I took the product on credit for this amount.
Because we are old customers, we don't have to make the payment upfront. If the amount is large, then we can pay in installments. You can make a partial payment, and this is something they support - distributors also do this. They might send us the products first, and an employee will come after a few days to collect the money from us. This is the kind of facility that we get. If I have taken something for a thousand rupees and I only have Rs 200 with me, then I can pay the rest later. Even if I cannot pay all of it together, I can pay a small amount the second time and the rest later on. The second time, I can pay 200 again, and in the third installment, I can pay 600 and clear the amount. This is something allowed by distributors and wholesalers. They try to give us this flexibility, and we try to pay them at the right time.
I need to buy goods from vendors. I don't buy goods worth 1-2 lakh. I make local purchases. I buy from wholesale markets and stock my place. I do Asansol Local Purchases. They are about 2km away and I can purchase goods worth say 20k or so. They also give some amount of credit.
I manage credit with vendors like I told you that they write it down and then pay it off via small microfinance loans. I pay off the loans one by one. I have to pay off the vendors before I take the next batch of goods. I get a certain credit period from them, so I make my purchases there. They provide the goods even if I don't have cash with me. I get the goods on credit and give them cash when I receive it. I might make a partial payment. for example, I take goods for 50k and give them only 10k. They provide me credit for about 40k. Then I take a microfinance loan and clear their funds. That way, I might get more goods. perhaps 1 lakh more. I write my inventory down in a book. I write down how much I owe, the goods I have and so on and so forth.
Not all of the vendors offer credit. Only saris are available on credit. The rest are for cash. I may record the cash amount given. If it is 30k, I may pay 20k in cash and the remaining amount through PhonePe. I may make a note of that. PhonePe and Google Pay. I use them both.
If it's a Tuesday, we know that this particular supplier will be there for the collection. So, if there is Rs 5000/- to be collected and I have not had that much of sales, then I would just pay 1/4th of the amount and tell them that I will pay the remaining next week. For the next person, I will divide the money accordingly and keep.
Discounts for each item differs. There is no discount for lining. In sarees if we pay within a month they give some discount. If you pay in 3 months there is no discount. If you pay immediately, there is a 5 percent discount. They give us one month credit, but then there is no discount.