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DP Contract
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RayJenkins
Posted 11/27/2012 16:25 (#2719876 - in reply to #2719750)
Subject: Re: DP Contract


SC Iowa
Be careful when trying to read customer's minds

Many years ago we had a duo who delivered corn to us from the fringe of our draw area and wanted to write a basis contract.....no probem, but they were incredibly hard to reach when it came time to roll the contracts and get paperwork signed. I remember driving over there and tracking them down one time....

Well, it came to the end of June and time to price or roll......we could not reach them and finally decided to roll them, since that was there customary nature up to that point in time.......well, the board took a big dive rest of summer and when they called in to finally price, they were very upset.....when they had written the contracts initially, they held themselves out as being quite sophisticated in the ways of doing business in the grain biz....but suddenly they were poor little ole farmers who had been taken advantage of by the big C

net/net, we were forced to go back and pay them for the value of the contract as if it had been priced in late June......at a cost of about $10 grand.....

and I am sure if we had priced the contract and the board had gone up, they would have taken us to task for that too...

rule #10......be very careful with whom you do business with regarding credit sale contracts..

(this was in Iowa)

Ray J
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