Early Order Programs Cancel The title field is required!

1. Satterwhite Kerry

   
   9/16/2011 12:09 PM

   Do you take advantage of early order programs? Either purchasing product for use now and getting extended terms or ordering for next season and receiving either terms or a discount?

   
   
   
   
2. Melvin Waldron

   

   43 posts
   
   9/16/2011 1:09 PM

   Kerry,
   
   The only time I do an early order anymore is on golf accessories. I also did the Lebanon fertilizer grow-in program when I did a grow-in. Most of the chemical early order programs requires more product then I will use in a year.
   
   Mel

   
   Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO
   
   
3. Kenneth Ingram

   

   18 posts
   
   9/16/2011 2:09 PM

   I had a club comptroller once, who was a CPA, that proved to me how early order programs broke every rule of accrual accounting. If you took delivery of something in a fiscal year it had to be paid for in the same year. I actually got in a little trouble with those programs. Another friend started a job Jan.1 only to find out he inherited $35K of inventory that was payable in April. Product he didn't really like. That being said, I know these programs are all the rage and friends of mine in sales tell me this is all they are doing this time of year. To be competitive Kerry you probably need to offer these option. You are an old pro, just make sure younger Supers know it's not usually a good idea to stuff invoices in the drawer all winter and pull them out next April for payment even if they are saving 20%. Make sure their accounts payable folks sign off on these programs in advance. Kenneth Ingram, UMD

   
   
   
   
4. Andy Jorgensen

   

   1 posts
   
   9/16/2011 2:09 PM

   We do the majority of our chemicals through early order. Order now, receive and pay in April of next year. We pay as soon as it is received. A good Superintendent can forecast the majority of what he will use a year in advance. No, not all of it, but a good majority of it. That is what we do. Our early order program has allowed be to save lots of money and have the product in stock when I need it. Even when I had a small budget and 18 holes to care for, I still purchased a portion early order.
   
   I have yet to see a fertilizer early order program though except for liquids. Maybe they just don't do it down here.

   
   
   
   
5. Satterwhite Kerry

   
   9/16/2011 3:09 PM

   I didn't participated in most of the order programs for the same reasons sited in the responses above. I was asked today if I could put a program together for our distributors but I'm not really supportive of it, agronomically or economically.

   
   
   
   
6. Spotts David A

   
   9/16/2011 4:09 PM

   we don't do early order with agency orders like from syngenta, etc. we do early order all the chemicals we know we will use from our distributors and get significant breaks.they have % off on total order including liquid and granular ferts and they give better prices on their generics than in season. we don't use enough of a single product to qualify for the things like a drum of primo or banner.

   
   
   
   
7. Andy Jorgensen

   

   1 posts
   
   9/16/2011 4:09 PM

   spotts said: we don't use enough of a single product to qualify for the things like a drum of primo or banner.

   
   
   
   Syngenta offers the same sizes....gallons, pounds, etc....I may only buy a 6# bottle of Heritage, but it counts towards the % rebate we get for the remainder of the year. Yes, they have minimum orders to qualify for the rebate, but all of Syngentas products are offered and count towards that rebate.

   
   
   
   
8. David Brandenburg

   

   3 posts
   
   9/16/2011 6:09 PM

   I will for some things and have for wetting agents for a few years and used to with bagged fertilizer to either get a sale price or a rebate to be used for something else. I have these simple guidelines-
   1. Is it a product I will use in the next season?
   2. Will I save money for the course?
   3. Do we have room to store it?
   
   If the answers are yes we usually will do it. With our accounting system we cannot take the product until after Jan 1 so that does rule some things out. Everything else we specify what trade names we want and informally bid it out in late winter. Sometimes the generic is low bid, sometimes not.

   
   
   
   
9. Homme David R

   
   9/16/2011 8:09 PM

   If I could save my club 20% by pre-ordering a good portion of my fert/chem for the year, why wouldn't I? I would say it's a no brainer. Agree with Andy. A guy should easily be able to forecast most of his needs for the year, including times for applications. At least after a few years at the same property. I wouldn't be listening to my bean counter on the accounting procedures stuff. Bottom line is the bottom line and 20% of whatever, is a good savings for anyone.
   
   Dave Homme
   Falls Resort

   
   
   
   
10. Wahlin Scott B

    
    9/16/2011 10:09 PM

    I think David Spotts (aka, "The Finger") has the ticket. Negotiating with distributors who can bundle generics in the deal is better than going with a singular manufacturer.

    
    
    
    
11. Andy Jorgensen

    

    1 posts
    
    9/17/2011 5:09 AM

    wahlins said: I think David Spotts (aka, "The Finger") has the ticket. Negotiating with distributors who can bundle generics in the deal is better than going with a singular manufacturer.

    
    
    
    Why would you go with one manufacturer anyways? We do EOP from Syngenta, Bayer, BASF, Arysta, Harrells, Precision Labs and Brandt every year. Last year's early order netted me a savings of roughly $42,000. Granted that is three courses though. EOP's allow me to stick with name brand products(all of which support this industry) at a generic price or sometimes cheaper. I guess you still have to have somewhere to store it though, which we do.
    
    My first year here it was like pulling teeth to convince the accounting office to pay a lump sum in April. They couldn't figure out the deal. Once i explained it to them, they were all for it. Plus, handing them the rebate checks throughout the year, $3,000 here, $7,000 there, helps.

    
    
    
    
12. Keith Pegg

    

    0 posts
    
    9/17/2011 3:09 PM

    I do my need list in July every year and send out to 3 companies get prices back in a few weeks and order in late Oct with any last min changes for Feb deliver, Has worked well for years and I get good to better prices.
    
    Keith
    Zama Japan

    
    
    
    
13. Werner Thomas S

    
    9/19/2011 10:09 AM

    The idea is sound if you are planning to use the products you order in a timely fashion. I personally think it kind of the end user to stick with a plan they may end up changing later on. If it fits your plan and you like or need the rebates, have the storage space, etc. then go for it. If not, order what you need when you need it.