In discussions on payment terms with a new supplier. Already paid the full upfront cost of packaging for the product, as this is outsourced to another factory. However, main factory is asking for 100% of the cost of the product up front before production. When I asked for 30/70%, I got back "sales department and factory share one finance only" and they can only do 100% down now.
For what it's worth, we've been working with this supplier for over a month so far on logistics. They've already done extensive design work for the product, and they're a supplier to one of our competitors so we know the quality is good. Just not sure about the terms and their inflexibility here. Afraid of giving up leverage. Anyone been in a similar situation with a new supplier? I feel as if I have the leverage now and I can at least counter with 50/50 so I maintain some leverage.
Any and all thoughts so much appreciated!