I was running the company selling Football Manager, we had a number of companies distributing our product. It was not an easy environment because the whole industry was new, nobody had a track record you could check.
I hired a woman in sales and she found a new distributor for the game. They wanted to order 3,000 units, a nice starter order! But they wanted to be on credit and pay later (typically 60 to 90 days later!). I told my new sales woman that we must get cash up front for the first order as a sign of goodwill and that they are solvent – with no track record for companies because they were new, you could not credit check them.
She went back to the company and came back to me “They won’t do cash up front it’s against their company policy”. I reminded her it only applied to their first order and insisted. The distributor would not budge on this.
My sales woman said to me “I got the sale for 3,000 units and you are blocking it!”. I stuck to my policy. What happened next was interesting. My saleswoman was busy overnight and the next morning as I walked in, 3,000 units were stacked and boxed in reception with the distributors address on it. I didn’t budge and had to step over those boxes every day for 3 weeks.
What happened after 3 weeks? The distributor went into liquidation.
My sales woman never argued with my policies again!! 🙂