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US Foods and Payment Options

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pie2

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We buy most of our goods from US Foods and I’ve been trying to get them to set up a monthly invoicing/direct debit account instead of having to hand our rep a check when he shows up. I would rather not have my workers write checks if possible.

I asked my rep if he could do direct debit and he said that everyone of his customers write him a check. Anyone out there have any other payment options with their food vendors?
 
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Yeah - an ACCOUNT.
If you can pass a credit check, or have been a customer for a while, make them give you credit. Meaning they do the deliveries and leave you invoices, and you mail them a check once a month. Or have a check you wrote waiting for the driver every 2 weeks. Or something - tell them you CAN’T operate COD all the time - and tell them you can get terms from other vendors…
 
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We started with U.S. Foods last September. They had good prices for us. Then, they wanted us to use them explicitly and they would give us better prices. We didn’t and they started gouging our eyes out. We had to give our rep a check every week. We no longer use U.S. Foods as we have found two vendors that know pizza and are willing to help us out at every turn.

We do still pay our reps once a week, but we prefer it that way. We use PFG-Mittendorf and Farm Boy. Mittendorf does have other options, but we never really looked into it.
 
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If their terms are COD, Then i would start shopping for another supplier. My supplier gives me 7 days. I get a delivery from them once a week. The following week i have a check waiting for them. That is unacceptable to pay upfront for merchandise unless you bounced checks on them or took them for a ride…
 
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Reference farm Boy, do you either have a web site or contact number. They sound like they could be of help to me. Thanks.

Pizza Bob
 
Redbarn,

Although that does sound like an easy way to do it. They have to be passing on that cost of accepting payment to you. Last time I checked, the best rate that you can get on a cc is close to 1.25% for a debit card transaction. That means that your food bill is at least 1% higher then it needs to be.
 
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i use us foods i am on a 14 day credit
i pay by check by mail or give sales rep a check for invoices every 14 days
 
Anonymous:
i use us foods i am on a 14 day credit
i pay by check by mail or give sales rep a check for invoices every 14 days
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Same here. We have 14 or 21 day term, and we mail checks regularly. Gives me more control over cashflow, and also a chance to get quicker credits for mispicked items and damaged goods.
 
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Scott Hack:
Redbarn,

Although that does sound like an easy way to do it. They have to be passing on that cost of accepting payment to you. Last time I checked, the best rate that you can get on a cc is close to 1.25% for a debit card transaction. That means that your food bill is at least 1% higher then it needs to be.
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Actually that number is probably closer to 2.5% up to 3.5%. Since the number is on file, and probably a “Corporate” Card, and is hand keyed. The debit Card Rate you referenced is for Swiped Transactions only.
 
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I have 30-day credit terms with all vendors. 30 days is pretty standard for any industry.
 
US is my main vendor and I have never had a problem with their credit dept…they actually never give me a hard time even thought my terms are 14 days, but sometimes I wait 3 weeks…normally I pay every week though…I asked about paying by credit card to get the sky miles, but my food cost would increase by 2%…I would rather pay for my vacation then get the miles…usually if you are on COD it is b/c you are new or have bad credit
 
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Thanks for the feedback. I’m still working with my rep on this but so far he has only offered to pay by CC. It’s surprising to me that manual check writing is the preferred method by our vendors.
 
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Scott Hack:
Redbarn,

Although that does sound like an easy way to do it. They have to be passing on that cost of accepting payment to you. Last time I checked, the best rate that you can get on a cc is close to 1.25% for a debit card transaction. That means that your food bill is at least 1% higher then it needs to be.
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I think business to business credit card charges are much higher.
They tell me it is because business are most likely to pay their bill and the c/c outfit does not get to stick them with high interest payments.
George Mills
 
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