To: Zeev Hed who wrote (16256 ) 10/30/2000 7:31:52 AM From: Road Walker Read Replies (1) | Respond to Zeex, re: "Some customers prepay for orders (i.e. they do not have credit with the company, or they buy directly from SNDK's web site, if SNDK sells in such a fashion to end users). Other customers pay within 10 days of shipment and take a 1% to 2% credit for paying ahead of time. Most customers pay net 30 days from delivery, and then za smaller number of customers have longer term payment." seasonal product, where the retailer will load up in expectation of high seasonal sales, the manufacturer will sometimes offer extended terms on the large order "buy in", to help defray the retailers carrying costs. I have no idea if this is the case with SanDisk.never get a true picture of investory at a given retailer, so how do you accurately measure sales? You have issues including shrink, returns that get credited to the wrong manufacturer, IT problems, other things, it's just a mess. To say nothing of your terms, if a product sits on a shelf for 60 days, and you grant 90 day terms, you are looking at 120 days to get paid. It's much cleaner to recognize revenue as the product leaves the SanDisk dock, as 99.9% of companies do.
