How do I check a pet supply store’s regular food delivery customers?

Regular deliveries can be the steadiest part of a pet supply store, or a thin list that looks bigger on paper. Ask for a summary by customer: how long each has ordered, what they buy, how often, and whether orders have grown, shrunk or stopped. A few large accounts behave very differently from a long tail of small ones.

Then check the evidence. Match a sample of deliveries to invoices and to money received, so you know the list is real and the customers pay on time. Ask whether anyone is on a subscription or standing order, and whether any discounts or free delivery arrangements were promised that are not in writing.

Next, look at how the work gets done. Who drives, how long do routes take, and what does fuel and time cost? Ask whether the seller or one employee holds the personal relationship with the best customers, and what would happen if that person left. Finally, ask how special diets or recalled food are handled for those customers, because pet owners notice such details quickly and talk about them. Your accountant can help you work out how much of the revenue actually repeats from one month to the next.

Key takeaways

• Get a customer-by-customer order history showing frequency, growth and any lapses.
• Match a sample of deliveries to invoices and payments.
• Find out who holds the relationships and what any delivery promises are.