Given the current casualty rate in retail, getting your money in faster can help.
The issue then becomes: How much to pay the customer i.e. what discount off invoice will make earlier payment attractive to the retailer?
The following screen-pull from NamCalc illustrates the calculation for a 15-day reduction in payment period.
The issue then becomes: How much to pay the customer i.e. what discount off invoice will make earlier payment attractive to the retailer?
The following screen-pull from NamCalc illustrates the calculation for a 15-day reduction in payment period.
[The exercise proves that a 0.5% discount is equivalent to a return of 12% on the money for the retailer. We also add in the incremental sales required by supplier and retailer to recover the settlement discount amount]
Just one of the 33 calculator-tools for NAMs available in NamCalc
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