BUILDING MATERIAL DEALERS
Building Material Dealer: Credit, Stock and Contractor Accounts
A contractor calls at 7 am for twelve bags of cement and a load of sand on site by noon, with last month's bill still unpaid. You say yes, because the refusal would go to the dealer across the road.
We help you set credit limits by contractor, keep a stock and rate sheet the counter can read, and run a weekly dues meeting. We coach your munim and counter staff to run it. Anything on structural suitability of materials, product standards or tax matters is outside our remit.
Discuss your priorities ↗COMMON CHALLENGES
The pressures
we often see.
- 01Contractor credit grows quietly, bill by bill, and by the time the owner looks at the ledger, a few accounts hold most of the cash.
- 02Cement and steel rates move often, and the counter quotes yesterday's price to a regular because nobody revised the rate sheet this morning.
- 03Delivery trucks and tempo trips are planned by memory, so one site waits while another gets two partial loads and an extra fuel bill.
- 04Dead stock such as odd-size fittings and old tile lots sits in the godown, occupying space and cash with nobody checking its age.
- 05Salesmen who bring in contractor orders are paid on volume, which gives them little reason to chase the money that comes after.
OUR FOCUS AREAS
Where the work
usually starts.
- 01A contractor ledger sorted by amount due and age of the oldest bill, with a credit limit against each name
- 02The daily rate sheet for cement, steel, sand and aggregate, and who is allowed to change it
- 03Godown count against the stock register for the fast movers every week
- 04Truck and tempo trips by site, load carried and fuel spent
- 05Cheque and part-payment follow-up dates written next to each overdue bill
- 06Quote-to-order tracking for large project enquiries, with a named person following up
- 07Supplier credit days from the cement and steel companies set against the credit you give contractors
- 08A list of slow stock with the date it came in and the cash tied up
START THIS WEEK
Things you can do
before you call anyone.
- Open your ledger and list the ten contractors who owe you the most. Mark each one's oldest unpaid bill date. This single page shows where your working capital is parked.
- Hypothetical example: a contractor owes ₹4 lakh and orders another ₹60,000 of material. If your agreed limit is ₹4 lakh, the counter has a clear reason to ask for a part payment first.
- Write down who is allowed to change the rate on the counter board and at what time each morning. Tell the staff that no one else quotes a new rate.
- Walk the godown with the stock register for 30 minutes. Pick five fast-moving items, count them, and see how far the book and the shelf disagree.
A PRACTICAL ENGAGEMENT
Start with the priorities
that matter most.
We begin by understanding how your business runs today, find the gaps, and agree the scope in writing. Recommendations are shaped around your team, your resources and your goals.
- A contractor credit sheet with limits, ageing columns and a hold rule the counter can follow
- A one-page daily rate and stock board for the counter staff
- A weekly dues meeting format with the order of accounts to call
- A commission and role note for salesmen that includes collection, not only dispatch
Not the right fit when: This does not fit if the main issue is a legal dispute over a large unpaid bill or a trade licence matter. A lawyer or the relevant office should handle those first.
Explore a business audit ↗LET’S MOVE YOUR BUSINESS FORWARD
