TYPICAL SALES AND MARKETING POLICIES WITHIN THE INDUSTRY
• Most companies operating in this space are supplying goods to dealers, with credit facilities of 90 days.
• Many well reputed companies are selling goods with both cash/credit policies.
• Due to the fact that farmers earn money after harvesting, they prefer buying from companies that offer credit facilities. Hence, companies which only offer products on cash tend to have lower sales.
• During closing time, almost 90% of credit revenue is collected on time. The remaining 10% is collected with a delay of 30 days after the closing period. Ineffective collection policies also lead to a number of bad debts.
• Products that are sold exclusively on cash tend to collect 100% of revenue within 15-30 days from the point of sale.