5% penalty for late delivery

[color=Blue][size=3]The workers in factory were leaving for holidays, we cannot ship the goods on time, now, the client asked 5% penalty for the delay, although I requested to get his tolerance on it and don't reduce our credit on delivery...!Po%M0`0kiDY5J7[6K

|xS,^OG$ix/xF I talked to my boss, he said we cannot accept the penalty, how to persuade my client to permit the delay without penalty?[/size][/color]

is the goods seasonable or not? if not, then customer shouldn't penalize you even though there is delay...
3WEu A]XF7L Everybody should make mistake..

G'R,whn6C&}"Y3w and if he didn't state on the contract delay will be punished...

Reply #2 Banana-apple's post

the penalty term has been stated on contract,zo:@7M;M%fPf
also it can catch their selling season even though we will delay some days.

We just try our best to shipped all the goods without any excuses,include our spring festival day:)

Reply #3 dinahsun's post

please kindly check your contract
7l,L'TR4}1j1A3AS4k if your delay the cargoes
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B#nG what is the terms about the delay C)ZT*Rk1~
but anyway it is not right to delay the cargoes though you have some reasons

[quote]Originally posted by [i]dinahsun[/i] at 2008-1-30 17:10 [url=http://forum.fobshanghai.com/redirect.php?goto=findpost&pid=3209663&ptid=317302][img]http://forum.fobshanghai.com/images/common/back.gif[/img][/url]S})L_Il W(g
the penalty term has been stated on contract,
M%Y$Y"@6O also it can catch their selling season even though we will delay some days. [/quote]q RC/pmm:i?!G#V

8KUM0{9SzKB@ Now this is the problem,the penalty term has been stated on the contract,it is difficult to persude the customer.U T6y M x.b7J!m o
But try to talk with him again with sincerelily,explain him the very reasones cause the delay,and ask his forgive,also1Pl+vrp@X;@9H
pomise not any more delay for next order.z7gt9nM ~F-GQ
Mabybe you can discuss with your boss to find out if it is possible to give the customer some discount next shipment.s6X*O%U@g

z3tM&]/P5s1qQ5n All what show that you try to cooperate with him more and to help him more profit.
wx:v@f6L Anyhow,it depends.

LZ,frankly speaking,shipping goods on time is very important since it's related to our Chinese Company's reputation in the world.In Sep.2007,we did not ship a completed 20ft container to Germany on time,only 20CBM,the reason was that we could not finish some items since the parts were not deliveried in time.My customer was also not happy about this,so i discussed with my boss,he agreed to pay the ocean freight from China to Germany for balance 8CBM.I hope you can get some good idea from my experience.

thank you for your advices!!!
v:{5g-UB1N1`{m this morning, I received my client's email to say that he agreed to reduce the penalty to 1% to give us a warning only...
:T%fphrqP6]-\ :victory:

Yes, i aslo thought that  delivery on time is very important for us to do the foreign business, just you have assure that you can ship the goods on time, you aslo should take efforts to try your best to complish the task , and no any delay, in this way, we can win the clients' heart, and maintain a good business relationship with them, aslo can have a good reputation. K-n}"gO
This is the crucial way to cooperate with foreigners for a long term.:victory:

Congratulation, it's the best result I supposed

Reply #1 dinahsun's post

It's good to hear that the customer reduced the penalty. ~a|s7w#YG

O0F!?"C5Vt8L Anyway, next time before signing a contract, try to leave adequate buffer for your delivery time under the condition that it shall satisfy your customer.
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T*Nql,Q3kC Then paying much attention to the Force Majeure Clause and the Late Delivery Penalty Clause. }+We,WwDY4H8[

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L As to your case, I think, you have enough evidence showing to your customer, i.e. the heavy sleet [only you and I know that is not the reason, but luckily it could be useful for you.] , which could be included in the Forece Majeure.
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Also, if you might deliver late, better notice your customer first and try to get their approval, if they agree to that without penalty, that's better.
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If customer insists on penalty, then do it as required to show your fully compliance to contract, which might be helpful for future business.
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w/d.dM1M5t l#j.S One more, if claimed penalty, you'd better know that you are only responsible for the late delivered goods, excluding the insurance and shipping cost, if any.:)
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(E }qm9It!H [[i] Last edited by NORTHGUY(LONG) at 2008-3-10 15:25 [/i]]

Nice to hear that

one of our cargo suffer with delay. bZ fE-E
I explain to client that the damn weather, and he is kind enough to give me 10 days' grace:loveliness: .U1uHk*RC|:UG
Good client give me another order recently.:loveliness:

Reply #13 ritawang1018's post

:victory: CONGRATULATIONS!.dBI0lA
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Do remember ten days might not be enough for you, for you know, we do not know what the weather would be in the next ten days. Right? Also some other conditions out of our possible control. For you konw, the trade process is a chain, any delay or failure of any part or parts of  which shall cost.:[_3tMy#EY

UV CQG-W So just treat the customer just as he were you.

Reply #1 dinahsun's post

in fact, for such kind of problem, it is unfair for the customer. )ZT cGR-F_ `

(Yh;gl2NV)X(K c Because it is your factory's problem that your factory can not deliver the goods on time. The customer has the right to let you give him the penalty.
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"b4F$A0Du*Bme-Ab Frankly speaking, your factory should finish all the goods before Holiday. Otherwise, should get your customer's agreement that deliver the goods after holiday first.  If your customer agree that, there will be no problem.
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So, your factory should take the responsibility.

HOHO.. Learned it.i e)Uwjqv:v*O
When we meet this kind of situation, we should try our utmost to explain to our customers with good reasons.

FrI4Q rdj Of course, we should know what causes the delay. Only if we know the real reasons, can we persuade customers our to cancel the punishment. mqa e,B}
If we know how to be a human, then we will know how to do business.
F+e+X4A7tA{F!cOD i}9b)EB
There is a article saying: To do business is just like to be a human.:D :loveliness:

Reply #16 songm914's post

usually, we will stop getting order near the holiday. K+Q"R9p,_&R

J4c/ZP3L*m3|V Also, before the customer place the order, we will let them know that first.

As for the penalty, it is hard to say. In 2005, we delayed three times for the shipment of a German customer's order, after sincere apology, no penalty is demanded.
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oN Anyway, as a factory,it is the best way to keep your promise.

I agree Jeanwayang's idea. Factory should keep strictly about the delivery date, not delay.

sorry to hear that.
3QMNa]1b i think if your client is a friend of you,it will be easy to pursuade him

we have to ship the goods by air if we did the late shipment before:Q

All of your english is so well,I need to learn it from you

I think the most thing that we willl build our reputation is deliver the goods on time.But for us,our facotory is not so good,and the delivery is too slowly.I always blamed by my customers.

we are very lucky compare with you . in general ,our customers can give us a week extension based on original delivery date,even we ccan get more than a week extension . if the transportation is air,it is difficult to get customer's extension because the buyer is very anxiousl to receive the goods.

Reply #20 jiejuewhen's post

yes, finally, my buyer just asked me to pay 1% penatly to let me learn from it. :victory:

Reply #21 YISOQ's post

the air-freight cost for bulk is a very big afford.:Q

Reply #23 watchrose's post

so choose to work with a reliable factory is especially important for trading companies, it will effect on if you can develop the business with your buyer further. :)

Reply #24 sangtian's post

we only can get 2-3 days tolerance as per the different shipping schedule from forwarding companies. :)