Secrets to a Successful Greenhouse Business

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You are responsible for your plants until they are signed off at delivery; always get a signature of acceptance.

Presenting the Bill

A bill of lading should be filled out completely before the shipment leaves your nursery. Write down the number of boxes, the sizes, and destination. Sometimes a federal plant inspection stamp is required on the bill; your county agent can tell you when, where, and if you need it. The bill is then carried along with the plants to the buyer and shown at weigh stations.

The bill should be signed when the plants are delivered. One copy is left with the buyer, one with the shipper, and one with the grower. Be organized with these bills—they are proof of delivery when billing by mail. Send an invoice as soon as the delivery is confirmed. If you don't receive payment within 21 days, send a follow-up invoice. After 30 days, telephone the buyer to check on payment. Keep your copy of the bill of lading.

Collecting Your Pay

Large grocery-store chains usually pay within 21 to 30 days. Smaller chains and locally-owned stores often pay within 10 to 15 days. You might want to offer a one to two percent discount if your invoice is paid within 10 days. This is almost always to your advantage, and your buyers will feel they are getting a good bargain.

If you're thinking about extending credit, check out your buyer beforehand. See if you can find someone else that they have done business with and inquire about their credit standing and what limits they were allowed. Ask if they have ever had any payment problems. If they have, insist on C.O.C., which is always the best system when you're first starting out. If payment is not received promptly, call your buyer and verify the invoice to be sure an error was not made. In some cases, a simple error on an invoice can delay payment. The larger grocery chains and department stores sometimes send your invoice to a central office or accounts-payable department. Track your bill down to the person responsible for paying and inquire about their payment schedule. This way you will know exactly when to expect payment. If there's a problem, have them run it down and return your call that day.

The best way to avoid delay is to double-check the address and amount of invoice before you send it out. Also, when you have your invoices printed, include a statement saying that "all claims against damage must be made within 48 hours of receipt of shipment." Your invoices might also reference the two percent discount if paid in ten days and 18 percent annual interest on unpaid balances over 30 days, which inspires fast payment. You can now sit back and enjoy the green.

Editor's Note: T.M. Taylor's book, Secrets to a Successful Greenhouse Business, offers complete instructions for building a backyard greenhouse and step-by-step instructions for growing, promoting, and marketing your plants. It is available for $8.95 from GreenEarth Publishing Company, Inc., P.O. Box 243, Melbourne, FL 32902.

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