Carlsberg: Probably the worst credit terms in the world
Does Carlsberg have one of the most memorable marketing taglines in the world? Probably. Is it treating small suppliers with contempt with its demands for extended credit terms? Absolutely!
Can you believe the brewing giant has just informed suppliers that from the end of August it will expect credit terms of a whopping 95 days? At a time when so many businesses are struggling how on earth can a huge company like Carlsberg justify treating its suppliers in a way that could cripple them?
Probably the best lager in the world? Personally I find the question of the quality of their beer easy to contradict then that famous tagline, but no matter how many of Carlsberg’s customers are failing to drink up, it is no excuse to treat their suppliers in this way. It leaves a nasty taste in the mouth doesn’t it! Not particularly good public relations either!
The Forum of Private Business has condemned the move and is urging Carlsberg UK to adhere to the Government’s prompt payment code, as reported in the Morning Advertiser and the best Carlsberg offers in return is a sympathetic approach to suppliers who might be in trouble.
Morgan PR strives to pay its suppliers promptly, not least as many of them are small businesses who appreciate such a gesture and we are delighted that the majority of our clients do pay us promptly too. Surely that is just good honest and polite business practice that helps the world go around?
Late last year we had a prospective client meeting with a business in West Berkshire that went swimmingly well and looked promising. We had talked about the approaching sense of recession and he asked what I would do with a ‘supplier in trouble’. Naturally, I said I would want to help them, but he laughed and suggested not paying them would mean saving on that invoice if they went under! They got quite stroppy when we declined to work with them!
How do you pay your suppliers? Some of the best PR you can do for your business is to get a good reputation making prompt payments whenever you can. Will it make you the best kind of client in the world? Probably!