91. How Modest Coffee Ended up $200k in Debt From a Failed Distribution Deal
This lesson is an episode of Foodbevy's Startup to Scale.
Listen to the episodeWhat you'll get
The founders of a specialty coffee roaster tell how a national distributor ordered far more coffee than planned, held payment while they were a new vendor, then returned the stock when the retailer behind the order backed out, leaving them in debt until an online sale moved the bags. Use it to decide what you need before a very large first order, such as a named contact at the retailer and a plan B for the product; it is one side of a dispute and includes a frank account of a shop injury.
Do this week
Before your next big order, write down who at the retailer you could call, the payment and return terms in writing, and where else you could sell the product if the order were cancelled.