It’s clear to all of us manufacturers and distributors have been stripping overheads and cutting margins to the bone for the past two years. Our clients are telling us there really is no capacity to soak up any more margin pressure. Price hikes are definitely on the horizon.

To keep your relationships strong and your company growing, begin now telegraphing your circumstances and setting expectations for forthcoming seasons. If the Recession taught us anything, it’s that it is never good to ignore early warning signs.

Analyze how rising prices from your suppliers and the demand dynamic of your customers’ business will affect your bottom line and start adjusting appropriately now. The trick is to get your prices up more than your costs without damaging your demand. Not an easy trick to pull off by any stretch. Buyer relationships will be key.

Also, take a fresh look at the product you’re delivering. As price tags go up, quality and design will be strong differentiators for consumer demand. Inflation will weed out inferior products with bland design, taking some of the stodginess out of the market and opening up opportunities for design-driven products.

I remain optimistic that overall demand will continue to recover in 2011 as consumers move back into traditional buying patterns and eventually get used to paying more for goods.

Reports show that in August manufacturing in the U.S. expanded for the thirteenth straight month in a row, giving Wall Street and economists alike hope that this recovery will not flatline. U.S. manufacturers with distribution channels in more robust international markets like China led this growth. Our performance bears out this trend. We’ve seen a healthy uptick in our export finance product; we provided funding for six new clients last month.

Foreign market demand for U.S.-manufactured goods has appeared to give domestic businesses more confidence to begin investing again in capital equipment and supplies. The days of slashing inventory that characterized the darkest days of the Recession have subsided.

Many manufacturers, however, are still holding back from investing in their businesses or exporting their goods to jump-start growth. We encourage you to set aside your fears and educate yourselves about the growth opportunities before you right now. Don’t let your competition get a head start.

Want to learn more about international trade? Check out our International Trade Finance Reference Guide for information about who should export, frequently used terms, examples and more.

.

1.  Coming in first: “The check signers are on vacation/out of the office.” At 34%, the classic time buyer is still going strong.

2.  A close second, at 32%, blamed it on the mailman. “It’s in the mail” remains timeless.

3.  Coming in third with 14%, is the more current, and probably truthful excuse: Deflection. Blaming it on the bank.

Talking to our own clients we see the same trends. Although, in recent months, we have seen a 10%-plus reduction in the average number of days outstanding for the receivables we manage. A bit of “strong arming” you may think. But no, it’s based on these tips, which can help make sure you are top of the list when it comes to getting paid:

1.  Get them the invoice on time. No-one can approve or pay what they don’t have.

2.  A light and breezy early call. Just touch base to check with your client’s accounts payable team to confirm they have received the invoice and have what they need. Keep it conversational and quick. The “mislaid” invoice excuses will start to fall away.

3.  Shortly before the invoice is due, put in a follow-up call, again with a light touch. Check to see that they have what they need to pay and whether things are looking good for payment. It’s hard to use the “no-one’s in to sign” excuse when they have already told you it’s all set for Friday.

4.  It’s all about a routine. You will get to know the payment clerks and they will expect your call. You will also get to sense a change in tone when an excuse comes, as it’s harder to brush off someone you have got to know. For those clients who can pay, you will get your client “trained” to get your check into the run regularly.

Expecting some tips about “setting the collection dogs” on debtors? Nope. If your client can pay, and you don’t want to hear one of the top three excuses, these simple tips will help keep your cash flowing.

Any excuses you think should be on the top three or any tips for keeping the cash flowing? Love to hear them.