Are you paying your invoices to food suppliers with electronic funds transfer, a.k.a. EFT payments?
If not, you’re likely paying more for your ingredients these days. And not building good will with suppliers who’ll be less willing to work with you financially down the road if you hit a rough patch.
Listen in as foodservice veteran Dave Miesse explains…
EFT payments video transcript
Making sure an operator has paid outstanding invoices is the hardest part for a DSR is every week. Especially if they have to ask and plead that they get paid… that’s the toughest part of any DSR’s job, would you agree?
Yes, no doubt. But what I’ve noticed over last two or three years now is that more people are having the money withdrawn from their accounts using electronic funds transfer, or EFT payments… so the distributor is paid by making payments directly from your bank account. EFT payments really help restaurant owners keep on track.
What I hear the operators often say is “well I might not have enough up in the bank.” Well, that’s again where you’ve got to communicate with your sales rep or credit manager. It almost reminds me from when I grew up on a farm…that you need to have the fences in good shape so the horses didn’t get out.
You’re thinking, I might use that money for something that comes up… or graduation is coming around and you want to buy your kid a new car or whatever it might be. And you might think “you know maybe the supplier won’t get mad at me if I take another week to pay. Then I can buy that car with that money.
So, EFT payments really keeps the fences up… and keeps operators on a good budget. I hear that all the time. Operators tell me that ever since they switched to EFT payments they haven’t had a credit problem.
You know it used to be every week the salesperson would come in — or not come in — and the check would still be hanging there on the clipboard. And the restaurant owner would pull the check down when the rep didn’t pick it up right away so he or she could use the money for something else..
So, I would encourage you to get the electronic funds transfer activated and it will really will help you. And again, you might want to ask your distributor rep if you can get a little better price if you start doing it that way too.
In this business, you know you’re also paying cash for liquor and for this and that. It’s easy for that get out of hand… and for your budget to get whacked because of the inconsistency. EFT will end that problem and will help working with the sales reps, too.
Some of the best sales reps won’t open a new account anymore unless the customer does EFT. They don’t want to sell to operators if they don’t want to pay electronically.
And operators, don’t be offended if a sales rep says that to you because his company is probably hounding them. Distributors are seeing great results from the operators who’ve started doing it even when they didn’t think they would have enough money in their account every week to cover things. Distributors… they’ll roll with you if you don’t have all the money there. Again, back to the snowstorm or hurricane, flood or when business has been bad in the middle of summer. Most distributers will roll with you during these emergencies… especially if the electronic transfer is going on.