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What are some creative ways to make up for money lost from vendors lowering or eliminating early pay discounts?

Our vendors are really getting stingy with the terms they're offering us for paying them early. Typically we get a 2% discount if we pay X days prior to the date payment is due. We have recently had several vendors either decrease or completely eliminate these discounts. We operate on such thin margins that every cent counts. The first thing we did was switch them from ACH to check. Does anyone have any other ideas to make up for these lost discounts?


Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

1. No alternate suppliers who would be happy to compete? But I prefer a net price so that the so-called discount goes to COGS/Inventory.
2. Pay the "offending vendors" by P-card so that they lose a few % points. When they complain, negotiate your old discounts back.

(CFO) |

Re #1 - I'm afraid not. We're a reseller and they have some respected brand names. We do have some private label stuff that we could push in its place, but it's not likely to gain that much traction.
Re #2 - that is a good idea! Thanks for the suggestion!

(CFO) |

This has nothing to do with a change in our creditworthiness by the way.


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