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Trade accounts, bulk orders, payment terms and buyers who reorder forever.
Selling to businesses is a different game from selling to consumers. Orders are larger, buyers are less price sensitive on small items and far more sensitive on availability, and once you are an approved supplier the relationship can run for years. Customer lifetime value in this category is often enormous compared to the first order.
The catch is payment terms. Trade buyers expect thirty days, sometimes sixty, and that means you are funding their operations while you wait. A growing trade business can run out of cash precisely because it is growing, which is the most counterintuitive failure in business.
Availability beats price for most trade buyers. Someone who needs a fitting today will pay more to have it today, which makes stock outs far more expensive than a slightly thin margin.
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