I know a car manufacturer
that forces vendors to accept
6 months as their terms
(yes, they don’t pay ANY bills
until 6 months after invoicing).
I know a high end housewares company
that hasn’t paid their bills
in a couple of months.
How can these companies
push vendors around so adeptly?
Because they’ve built a brand.
A start up car manufacturer
wouldn’t be able to do it.
A mom and pop housewares company
wouldn’t be able to do it.
To do business with these big names,
vendors will put up with a lot.
They also assume
that the big names won’t go belly-up.
THAT is one of the reasons
you build a brand.
It is like cash in the bank.