Dicker considering late payment fees

Dicker considering late payment fees

But scheme would also see dealers that paid up early receiving discounts

Dicker Data is considering the introduction of early settlement discounts and late payment fees.

Managing director, David Dicker, said the hardware distributor would not introduce the small order charges currently being considered by Ingram Micro. However, late payment fees were on the cards and could be rolled out within weeks.

"We would be reluctant [to introduce freight charges] because they create ill will and introduce unnecessary complexity," he said. "But we're probably going to introduce charges for late payment.

"Customers on 30-day terms will be offered an early settlement discount but if they're late then the meter starts running. Dealers know how it is and don't expect you to be an interest-free bank."

On current transaction forecasts, Dicker estimated the late payment scheme would generate about $50,000 per month.

"Of course it won't work out like that because it encourages people to pay on time but we'll still get an upside through not having to chase those payments," he said.

Dicker offers free freight on all orders over $500 to most geographies including anywhere in NSW, Victoria or SA, Queensland below the Sunshine Coast and Perth.

"We worked out years ago that freight was costing us about 0.5 per cent so we raised prices by that amount and introduced free freight," he said.

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