Thanks. I do kind of feel like I hit the jackpot with this.
Your phone call at 30 days was a good idea - I’ve heard from someone who worked there of a company that didn’t pay any invoices until someone called and asked for payment. The company has an obligation to pay in a timely fashion, but the person they’re paying has an obligation to keep on top of their accounts, too.
My company is huge, specializing in medical equipment, pharmaceuticals, etc (Top 25 of the Fortune 500). Our terms are 2% 10, Net 30. My last company was the biggest book distributor in the world. Our terms were 2 %10, Net 30. Our average DSO is about 15 days. I’d say we understand finance. The discount is built into the price of goods.
It’s been my experience that discounting terms vary by industry, with people expecting industry standard.
Having been in A/R for 30 years, I can say you won’t win friends or get anywhere giving a payment reminder call before the bill is due. Generally collection efforts start at about 5 days past due, after the check would normally be received by mail.
StG