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When to collect payment from pubs?

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  • When to collect payment from pubs?

    How do most breweries handle payment options for their kegs self delivered to restaurants/pubs? Does your driver collect payment upon delivery? Do you send an invoice later? Any special conditions regarding credit card or cash/check payment terms? Thank you!

  • #2
    This is probably going to depend on your local laws. In Washington state, I can't legally bill someone for beer after delivery. Every keg needs to be paid for as soon as it's dropped off. This is done so that the state knows that it will be getting paid it's taxes.

    Typical payment methods:

    Check - better than cash but not the best. I get paid 90% of the time with a check.
    Cash - sucks because it can get lost and there's less of a paper trail but I do get it 5% of the time.
    Card - the easiest since the deposit goes through immediately and there's nothing to lose. I run the card on my phone and can generate an invoice/receipt on the spot if I want. The other 5%.

    There's also Fintech ( Around here a lot of people use Fintech because it removes any payment responsibilities from the delivery guy/driver. Since I do pretty much everything for the brewery, there's no need for me to get on board yet. The convenience factor with Fintech is high though, and I know that I have customers who don't enjoy dealing with me because I'm not on it.


    • #3
      I know of breweries here in BC that send their delivery trucks out with wireless credit card machines.


      • #4
        There are 50 states with their own alcohol laws and as members of this complex and highly regulated industry it behooves us all to be on top of the specific regulations and norms which govern our livelihoods, but in general:

        Beer to a RETAIL account is COD. In most jurisdictions it is illegal to extend any kind of credit to a retail account. Otherwise giants like InBev would use that as a weapon in the marketplace. ("We know it's a little slow so go ahead and take these kegs now and pay us back in three months. See if our competitors can match that!") So you get paid on delivery and usually with a check. Which totally kicks ass. So many other providers to the restaurant industry constantly lament late and non-payment. Are there bars which will try and screw you, or which are good accounts but the chef can't be bothered to stop what he's doing for one damn minute and cut you a simple check? Oh you better believe it. But in general everyone is on board with Pay Up, Sucka.

        As mentioned there are payment processors like Fintech, which are usually used by larger companies like grocery stores, Costco, etc.. A bit of a pain and they take a cut, but if you've ever had to spend a half hour wandering all over a grocery store to deliver the beer, then go to the office of the person who cuts checks, who is out on lunch, of course, and you've got six more deliveries to do in the next two hours...

        Beer to a Wholesale Account (i.e. your distributors) is done either per the contract or by state law. It's usually Net 30, but can be longer. I've had some Net-60s on overseas sales.
        Russell Everett
        Co-Founder / Head Brewer
        Bainbridge Island Brewing
        Bainbridge Island, WA


        • #5
          PA is payment upon delivery


          • #6
            Thank you all. Classic spot-on, no-nonsense advice from the members of this fine board.