Vendor Application packet - really?!

[Jean Shimp]

New client asks for a quote on one custom made street sign. So I give him the quote and he agrees to proceed with the job. I tell him I need 50% deposit. I get an email with a "Vendor Application" file to be filled out by me and submitted to his company. The application is 26 pages! They also want a voided check for an electronic funds transfer. Really, I'm wondering if it's worth my time to jump through all these hoops. I've been down this road before with other contractors, but it seems like it's getting to be more work on our part to fulfill these jobs. In order to get paid I have to process more forms, get them notarized, figure out their software system, etc. I know I'll tie up a couple hours before it's all said and done. Maybe I should start a "Customer Screening Application" process. If I knew ahead of time I would have tacked on $200 for aggravation. Sorry, just had to vent.

 

[Texas_Signmaker]

New client asks for a quote on one custom made street sign. So I give him the quote and he agrees to proceed with the job. I tell him I need 50% deposit. I get an email with a "Vendor Application" file to be filled out by me and submitted to his company. The application is 26 pages! They also want a voided check for an electronic funds transfer. Really, I'm wondering if it's worth my time to jump through all these hoops. I've been down this road before with other contractors, but it seems like it's getting to be more work on our part to fulfill these jobs. In order to get paid I have to process more forms, get them notarized, figure out their software system, etc. I know I'll tie up a couple hours before it's all said and done. Maybe I should start a "Customer Screening Application" process. If I knew ahead of time I would have tacked on $200 for aggravation. Sorry, just had to vent.

You reminded me of a time I did an emergency sign repair for USPS. VERY LONG packet, and had to get some kind of release of lien or something forms notarized and mailed back before I could get paid. Pain in the ass. I refuse to do that crap on orders less then a grand... either purchase the signs like a normal person or move on.

 

[CanuckSigns]

We have had this before, usually if you are persistant that you will not fill out the form and you accept credit card for payment they will find a way around it. I'm guessing if they go to a restaurant to get a staff lunch done they don't make them jump through hoops.

 

[2B]

yeah......... one sign, not worth the effort and they can / will find a way to pay with a credit card just like they would at any other store.
imagine going to the grocery store, gas station, or online store like Amazon and giving them a 26-page submittal just to give them money.

 

[papabud]

yes i have been there also. but only time it makes sense to me is if its for either a big job or a client i feel that is worth the extra investment of my time.
one university i had to fill out forms and become a preferred vendor with. but that has well since paid for its self.
but just a sign order.
my terms are simple. half now rest when completed. or i can do 90 days if you fill out my forms.
if i spend 3 hours filling out a form for your job. you better believe it i will be billing you for those hours.

 

[petepaz]

we have had that before but with bigger jobs and it's usually a large customer or the government (we get a lot of government jobs) there are some branches of the military/gov that we do jobs for and they have a guy that comes in to inspect the jobs. he comes in for an hour or two and inspects the final parts. material, dimensions, our spec sheets and material certs but if you want the job you need to play the game and they pay their bills on time so we have that going for us...haha

 

[equippaint]

If you get the right person ordering, sometimes they will have another vendor setup that is willing to run the purchase through them. It seems like payment time is a function of the hoops you jump through getting setup. The more there are, the longer it takes to get $$.

 

[fresh]

they only times i've had to deal with that is when the job is $10K or more. And yeah, i'll fill out paperwork for good money. If its under $500 or so, they should be able to expense it or use a credit card.

 

[Pat Whatley]

Yeah, when you politely tell them you won't be able to do the job because filling out the paperwork is going to take more time than the job itself they suddenly remember they have a credit card for smaller orders.

 

[Creighton]

The application is 26 pages!

Unless you get some assurance this gets you on a very limited vendor list with repeat business, I'd tell them you'll have to have your accountant fulfill the paperwork, and you'll need to increase your price by $500 or some given amount. If it is worth it to them, they'll find a way to pay, and you may get repeat biz if they've "invested" in setting up a relationship with you.

More importantly, I'd wait to start until you get your 50%. Very often with a contract like that, you're working with an institution or business with a net 90 or net 120.

 

[signmania]

We've had a similar situation with a local school system. We have to fill out forms, prove we have lots of insurance (or have to purchase more), then sign an affidavit that we have not been and are not sex offenders. I rarely do anything but very simple installations (an age thing), but I would subcontract out installations by larger firms. I can't be sure of the other company's employees, and if I was a sex offender and wanted the job I doubt I'd tell truth (and hope they wouldn't discover it). It's at the point where if I was a sexual predator, had escaped prison for rape, been on a ladder doing an installation when an administrator pushed me off the ladder, the school wouldn't be liable for anything. Shakespeare in Henry VI said "First thing we do, let's kill all the lawyers." I think he meant "... lawyers and HR".

 

[TimToad]

The largest employer in our town is the state hospital for the criminally insane as portrayed in Terminator. A couple of times a years we get requests for quotes for some small banner job or routine sign. Their vendor packet is about ten pages and we used to bother, but its not worth it because they have no loyalty to anyone local and I've seen the telltale job labels on the backs of the hems on banners that show they went online. In most cases, I've seen the banners fall apart in short order, so screw 'em. Let some low paid employee at Staples or Vistaprint waste their employers time filling all the forms out.

 

[FireSprint.com]

We have a few customers ask us to list them as an additional insured on our general liability policy.

There's a lot of hoops to jump through some times.

I would say for a $200 order, I would pass on the paperwork unless you have a strong feeling you'll get a lot more business once you're in their network.

 

[Terry01]

Run the documents through a PDF editor and place your details at the top. Send it back to them and tell them they need to also fill out the same documents so you can be paid prior to doing the job..they might get the message..They are your clients,,they only need your Business details to place an order.

 

[equippaint]

Its probably all legal stuff that doesnt take much effort. If its a cheap job browse it over, pay attention to payment and scope of work, sign and send it back.
I roll the dice on these and many times they pay off. It narrows the competitive pool and once youre setup, its easy for both parties. Its somewhat like manufactured loyalty if youre willing to play the game.