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  James Kantorowicz March 3, 2009 at 12:01pm

  Michelle yes we have seen 3 major increases in raw materials over the last year and introduced our new product line, but we absorbed the increases and kept our pricing the same as our previous models.
  
  We also implemented a try us first program. This allows a potential dealer to purchase a pool heater try it out and with in 60 days if they decide to become a dealer we'll apply their previous purchase towards the dealership program. This program is very successful and its a way to get our foot in the door.
  
  
  Michelle Forchetti said:

  James, we don't offer any terms either--except in situational circumstances(VERY RARE). We also don't ask our builders to pay up front for a product either--Everything is paid upon delivery.
  I really think Your company and Steve's company are ahead of the trend. . . As credit offerings are drying up & liquidity is becoming obsolete, I truly believe these terms agreements are going to go away. . .at least for the short term.
  To counteract this credit freeze, I do believe you'll see a trend of many companies offering "incentives" and "deep discounts" to keep some semblance of cash flow.
  
  As Always, a Great topic for discussion James!
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  Steve Sweeney March 2, 2009 at 3:35pm

  We have the same experience as you. We require payment in full on all new orders, but we will set up net 15 terms after a credit check on the customer. Yes everybody seems to get upset with us this time of year because we don't offer 30-60-90 terms. I know some dealers have not ordered because of this, however most will order later. Selling Green is hard to most of the dealers because of the higher cost and it is a new concept to them and the swimming pool industry. I see the green business as the next big dot com. The customers are looking, we have to be ready to show them whats out there. They want it.
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  Jeff Kayden February 5, 2009 at 8:07am

  Here's what we do: 5%/10 days - Net/30 for those who are eligible for terms (ie filled out credit app and references check out).
  
  For those ineligible for terms, we offer 5% cash or check and 2% credit card. We found out the hard way that we need to make sure the check CLEARS before we ship the product.
  
  As you know, we manufacture liners. They go for about $1,000 each, if you are looking for a benchmark. Dealers often will use the deposit from the homeowner to pay for the liner.
  
  You're welcome to use my credit app if you don't have one. It hasn't been tested in court, but it looks pretty.
  
  My advise to you is; if you don't offer terms you really should offer credit cards. Our merchant service takes 3%.
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  Justin Gregoli February 5, 2009 at 7:22am

  Our retail operation requires terms during this time of the year, 60 or 90 days for sure. During the high times of the season we still prefer them but if the need arises we would be willing for payment on product delivery, preferably net 15 minimum. Never do we pay prior to ship on inventory, possibly on a special order, but it would surely lower the orders for a given product.
  I think terms require great care for a manufacturer so as not to get burned. We understand when a supplier says no, but in that case we also generally say no as well. There are many quality dealers with sufficient track records, that giving terms is a relatively low risk, however being the owner of the financial loss could make it a more cautious track in this day and age. With what is owed, by a certain electronics retailer in bankruptcy, to its suppliers, anyone could understand the trepidation.
  
  Justin