As the competition gets tougher, the manufacturers leave no tactic to bring out a boost in sales and improvement in profits. No matter what it takes, they are going to do anything to bring out a better figure for the number of products sold, customers made and the return earned over their investment.
Even electronic manufacturers stand no position behind than those in the race. Walking in hand, they continue to bring out innovations, differentiation and improvement in their products, point of sales and the tactics used to bring in customers – new potential ones as well as the recurrence. These Electronic manufacturers continue to deliver a vast number of services including supply chain management, global distribution and the customer support and logistics for their dealers and customers.
There starts a new system – “Extending credit lines to customers for Electronics Manufacturing” to bring on an appeal to their business and what they produce. Offering the customers their goods against a promise to pay later continues to bring out a potential room for more sales. Given that a wholesaler is offered credit for the purchases he makes from the manufacturer, why would he mind purchasing the goods! There is no money he needs to bet on, no investment he has to make with incoming benefit along as he sells further!
Electronic manufacturers are big sheep that understand the business well. They understand the risk and find the benefits of offering credit out-weighing the risks associated which brings them to the point to offer credit. Some of the benefits include:
- New potential customers always seek a further benefit. Extensive credit lines bring them on a value addition to their purchase.
- The option of credit enables the customers to focus less on the price they are purchasing at. Given that there stands no excessive hike, they will pay an extra price for goods offered on credit.
- Offering credit brings the business more sales. An electronic manufacturer offering credit could bring out more sales of their product, giving them an easy edge to pick on a greater share of the market against those who do not offer credit.
- It brings out a hype of your business in the market. Once the market gets to know you are offering credit, the customers start to prefer you and there is a great chance your competitor goes down on sales if do not adopt a credit approach.
However, since the sales on credit is offered with a mind that the customer has the capability to pay-off the amount he is buying goods worth for, such conditions must be ensured:
- The customer is actually willing to pay back
- Customer stands enough able to pay back
- There is nothing that stands as the hurdle to the customer paying off his debt.
Keeping in mind the above conditions is what the electronic manufacturers decide the payment terms which include the pay-back time and the interest charged, if any.
However, it has been noticed that now the electronic manufacturers have also gone literate enough. While they ship abroad and offer credit, they tend to ask for bank guarantees and the Letter of Credit. Hedged along with offering credit, gives them an ideal situation to perform on.
At Giltronics Associates, understanding that the burden of facilitating credit to your customers is a burned that fall on you and only you. For this the credit department at Giltronics Associates inc is looking to partner up with your business and help alleviate some of that credit burden on new and existing projects to cut your design & manufacturing and qualify cost in PCBA’s project financing, prototype and manufacturing for the Automotive industry and/or the printed circuit board and electronics assembly financing – Contact Giltronics Associates Here!