For building material suppliers, success doesn’t just depend on how much material is sold — it depends on how well transactions are tracked, payments are collected, stock is managed, and investments are made. In a market where buyers range from individual homeowners to professional contractors and builders, it’s easy for receivables to get delayed, and unsold inventory to pile up.
Track Receivables: Who Pays, When, and For What
Create a Receivables Register — manual or digital — with four key columns:
- Customer Name (Builder, Architect, House Owner)
- Material Supplied + Date
- Amount Receivable
- Expected Payment Date
Each day, check:
- Who owes money
- How old the bill is
- Whether a payment follow-up is needed
Mark customers who pay late often — this helps in deciding whether to give them credit next time.
Understand Who Buys What (and How Often)
Different customers behave differently:
- House Owners: Buy in small lots, prefer cash or instant UPI payments, and focus on price and personal attention.
- Builders/Contractors: Buy in bulk, may delay payment (15–60 days), but give regular business.
- Professionals (Architects/Engineers): Don’t always pay — they influence the purchase decision. Build relationships but track whether they bring actual orders.
Maintain a Customer Profile List:
- How often do they buy?
- What materials do they prefer?
- How quickly do they pay?
This helps you prioritize your service and credit terms smartly.
Track What Sells — and What Does Not
Maintain a Daily Stock Movement Log:
- What came in?
- What went out?
- What stayed?
Once a week, mark:
- Fast-Moving Items – Cement, steel, bricks, plumbing parts, wiring
- Slow-Moving/Non-Moving Items – Niche tiles, designer fittings, outdated brands
If something hasn’t moved in 30 days — it’s a warning signal. Ask:
- Is there demand in the market?
- Should I offer discounts to move it?
- Should I stop restocking this?
Don’t keep what doesn’t sell, even if the profit margins seem attractive.
Be Smart with Payables
Just like receivables, maintain a Payables Tracker:
- To which supplier do you owe?
- How much?
- By when?
If you collect payment faster than you pay vendors, your business stays healthy. Avoid giving away long credit periods to customers when your own suppliers demand quick payments.
Negotiate credit terms that match your cash cycle — e.g., if builders pay you in 30 days, request 45-day credit from your vendor.
Daily Discipline: Take Stock Every Day
At the end of each day:
- Check payments received
- Log new sales and delivery entries
- Review pending collections
- Check fast and slow movers
- Verify supplier dues
This 15-minute daily habit will give you clarity, control, and confidence.