How to Use Your Sellers Permit

Reading time: 4 – 6 minutes

This is a continuation from the Sellers Permit AKA Game Changer in the In the Black series for February. Over the coming weeks I will sprinkle some more steps into the R&G as I see I need to really get down to the ground with some of you cats. Don’t sweat it because truth be told I didn’t know what the hell to do with it either. In fact when I first got my Sellers Permit I went to a furniture manufacturer in Jersey and was trying to sell furniture to college students in Brooklyn. They wanted to see my store front but I didn’t have one so they drove by my apartment and asked where was I going to put it. So believe me I know the mistakes you’ll probably make.

Now that I got it what can I do with it:

1. Contact manufacturers not wholesalers – Every product you pick up from your cups to your furniture has a manufacturer. Most will deal with you directly but sometimes they are distributed through wholesalers. You get better prices doing direct so if you can deal with the cats who make it.
2. If you have to deal with wholesalers make sure you call at least 10 people who carry the same product. When I was in NY things cost more than me going across the bridge to NJ. So shop around as the devil will know you don’t know what you are doing.
3. Upon Contact – Ask for a catalog and price list. If they can email it let them but most will mail it. Some may ask you to fax over your sellers permit to make sure you are legit. Don’t worry just do it, it’s normal!
4. Limit Orders – Find out what is the minimum order. Since you are a small company you need to know if they are trying to make you buy 1000 buckets when in reality you only need 10. See how flexible they are over the phone before you place your order.

Ok now I contacted them what do I do:

1. Fax over a copy of your sellers permit and a invoice for the amount of goods you want to buy. You might as well breakdown and get Quickbooks as most companies are using the invoices generated from that program.
2. Since you don’t have any credit they will probably want money at the same time you pick  up the goods. Don’t worry this is normal just ask how they want you to pay them as some even take credit cards. Hardly anyone takes cash as they’d rather have a check with your company name on it.
3. Ask for delivery order – Most companies will send you a paper that says you are paid in full like a invoice. The proper word is a delivery order which gives you authorization to pick up the goods. When you get big and hire truckers this is the document you give them to pick up the goods.

Ok I’ve been working with them for a while now:

1. Establish credit – Credit can be in dollar amount of time limit to pay back. Most people want the dollar amount but if you are small it’s better to just pay up front. Believe me if you are a good payer the owner will personally give you credit.
2. Work on a Discount – Over time ask the salesperson or owner how you can get a discount. If you are a good payer they will lower the price over some time and especially if you increase your orders.
3. Find Another – There is no love in this game and you’ll find out there are 30 other places selling teletubbies who will give it to you for cheaper. You needed this guy to start you don’t need him to win.

Hope that helps as in order to be seen as viable business you have to know the lingo. Get your sellers permit ready, ask for the price list, send invoices and pay before you get there. All this shows you mean business and will grow your business. No one is going to extend you credit and it’s insult to bring it up on your first couple of transactions. Remember this is a business, not your friend, not a hook up but raw business. Keep all that street ish on the street because no one plays that game when real chips are on the line.

Unlike street stuff you don’t have to smile and be friendly. You might be surprised how people treat you because they plain don’t give a f*ck. It’s a cold cold game when you are really dealing with money so don’t get shocked when they wonder why you’re here. Get the Goods and GO!

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