| Vueguy said: I read a few comments. Man ya'll seen to be arguing over OP story for no reason. I don't think OP was a smart guy, he's working at gamestop and he don't even know why Sony ship those PS3 to his store. I have been working in small store like you years ago, the product the company send to you is odering by your manager dude. Sony ain't ship free PS3 to your store and lose money for no reason. Every company in the world do that. They must get pay before shipping something to a store. Your manager order them, they ship to your store. The question to you OP is, do you know why you got pay and how much? |
It is true that for a small store, or a small retail outlet for that mater, the store manager could have some say in what is ordered. But for large corproations, store managers have no such authority as everything is most likely automated/computerized and the system does the ordering for them.
and no, companies do not have to be payed immediately before they ship goods to retailers. They usually give out payment terms. For example, large corporations such as P&G require COD (cash on delivery) or NBD (next banking day payment). Some smaller companies can allow terms of 15 days. THis means that the retailer can pay the supplier after 15 days since the items or products were delivered. There are various payment terms and it all depends on the retailers and the suppliers agreement.
And after some thinking, there is a scenerio where in SONY can stuff the shit out of the market and this concerns payment terms. If the retailer and Sony have an agreement to have payment terms base on consignment, Sony can ship as much shit as they want as long as it can fit in the stores alloted space/area. Consignment means the retailer would only have to pay Sony for actual units sold. So for example, if Sony delivered 100 ps3s and the retail outlet only sold 5, then they only pay sony for 5 ps3s. This is usually acceptable to retailers even if they are stuffed as they only have to pay for what they actually sold and need not wory about the excess stocks and on the flip side, this is also good for Sony as they can ship out more units.
