Case Study: Trader Joe Grocery Store

I own a Trader Joe grocery store. My objective is to sell delicious, creative, low cost foods that are very difficult to find. “Gluten-free” foods, “Kosher” foods and “Vegan” foods are some of the products I sell (Trader Joe, 2018)
Yes, I would provide trade credit to customers, but would maintain a cautious and prudent mindset when I attempt to do so. I exist industry of multiple grocery stores, therefore I would research competitors to discover their trade credit protocol.
Many businesses consider it quite normal to provide trade credit. Some building and clothing businesses consider trade credit as standard procedure. I am a large business so I can afford to extend credit to well-chosen customers with hopes to increase my company growth. I also need to remain competitive. If I don’t provide trade credit, some of my customers may leave and purchase goods from my competitor because they know that they won’t have to pay right away. They’ll have a greater cushion of time. This is something they didn’t get from me. Trade credit provision can provide good financial character in the community. Customers can feel comfortable that our store is financially stable and a great place to shop for years to come (Score, 2018).

Wise decision-making is imperative. I much complete effective credit searches on customers who desire credit and avoid customers who have bad credit with other businesses. I must also maintain decency and order in my own business. If I establish a store process to track and monitor credit customers in a timely way, then I am in position to make good money. The key is to create a good balance between cash payments and trade credit. I must keep a watchful eye on both areas if I want to increase my profits on a regularly basis (ANZ BIZ HUB,