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Self-Distribution & Getting Paid: Kegs

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  • Self-Distribution & Getting Paid: Kegs

    So, I've heard a few of the horror stories: chasing payments, 30 becomes 45 becomes 60+ days accounts receivables, credit card deposit accounts that carry hidden extras. Even bar owners stating the unprovable "beer wasn't that fresh" after-the-fact and after keg is empty.

    We're a new startup brewery in NY and will begin (as many before us) with door-to-door self-distribution.

    Have pricing and initial Friendlies as preaccounts, just trying to anticipate actually "getting paid."

    Thanks

    Harlem Jules
    Thx
    -Jules

  • #2
    We have had nothing but positive experiences.
    Vermont is a cash only state - which means that accounts pay for beer upon delivery. Once in a while a check will bounce, but you can charge a service fee. If you are making world class beer, your accounts will continue to order from you and pay you promptly. Establish terms - such as payment upon delivery.

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    • #3
      To the best of my knowledge ( in NY State) if the account doesn't pay in 30 days the wholesaler is supposed to turn the bar in to the state of NY and the bar will then have to pay on a cash only basis. You may have to confirm this with the state, but we have known a few individual bar owners who had to pay via this method.

      On another note, after three quarters of self distribution, we have yet to have any issues with non-payment.
      Dan
      Cortland Beer Company, L.L.C.
      "Remember folks, foam is 30% beer"

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      • #4
        I've been self dist for over 6 years now. As my business has grown I've had more issue with late payments. I have 2 accounts that are 12 months out. not only have i not gotten paid but I never got my empties back either. It sucks but its part of the business.

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        • #5
          Getting paid has been extremely frustrating for us. we only have about 20 accounts and probably 5 pay on time. Wisconsin is 15 days.

          This was one thing I never anticipated. We have actually stopped delivering to some accounts because of payment issues. And what is with "I have a check here for you to pick up." They aren't familiar with a postal service?
          Tim Eichinger
          Visit our website blackhuskybrewing.com

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          • #6
            Regardless of your state's payment laws, you can always change your delinquent accounts to COD or bump up your keg deposits to $50. If that doesn't fly, drop them, because they aren't helping you pay the bills anyway. Look for new accounts. I may be simplifying things, but they get paid EVERY DAY. Lots of cash change hands every day at a bar or pub. Put their feet to the fire and don't be afraid to loose the account that isn't paying you in the first place.

            What do your creditors do if your late?
            I can guarantee you they are paying the Miller/Coors and Bud distributors on time.
            Last edited by Capt. Bob; 10-16-2011, 07:38 PM.

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            • #7
              Collecting can become a huge pain in the butt. Use you states rules (if they exist) to "force" payment. In Montana we can extend terms only to "Net 7" before the account is in violation and risk their license being revoked permanently!

              Prost!
              Dave
              Glacier Brewing Company
              406-883-2595
              info@glacierbrewing.com

              "who said what now?"

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