Overview
Custom Supplement bills separately for: (1) hard COGS (ingredients, packaging, third-party vendor costs) and (2) manufacturing services (labor, overhead, QA, compliance). Hard COGS must be funded up-front (deposit or prepayment) and manufacturing services are billed under normal payment terms. This structure — and the requirement that clients fund ingredients/packaging up-front — is already used in our partnership documents and quotes.
Accepted payment methods
We currently accept the following payment methods for invoices and deposits:
- ACH / Direct deposit — primary method for B2B transfers; wire/ACH instructions are provided on invoices. (Bank routing/Wire details are on file and included on customer invoices.)
- Domestic & International wire transfers — banks and routing details supplied on invoices or on request.
- Credit card — via our merchant/payment gateway when arranged (we maintain a standard merchant gateway configuration for card acceptance). (If you want to accept cards online we use standard gateways such as Authorize.Net / ARB / CIM as available.)
- Other (checks, payment portals) — accepted only by prior arrangement.
Invoice note: “Ways to pay” appears on customer invoices; invoices also call out deposit % and deposit conditions. Example: a recent invoice required a 70% non-refundable deposit to secure that order.
Invoicing & standard terms
- Deposit requirement: Every quote/SOW and purchase order will state the deposit required (amount or percent). Production / ingredient procurement begins only once the stated deposit is received. Example: a customer invoice included “A 70% non-refundable deposit is required to secure this order.”
- Manufacturing services payment terms: Payment terms apply to the manufacturing services portion (labor/overhead), and typically start at Net-30 with a cap on open balance; terms may improve as volume and payment history grow. This is the structure used in partnership documentation.
- Final invoice: The deposit is credited against the final invoice. The invoice will itemize ingredient/packaging costs (COGS), manufacturing services, shipping/freight, processing fees, and taxes.
Late payment / collections
Recommendation (standard practice): unpaid balances beyond terms will incur interest (e.g., 1.5% per month / 18% APR or the maximum allowed by law), plus collections costs. We also reserve the right to delay release / shipment of finished goods until invoices are current.
Refunds, credits & non-refundability
- Deposits: By default, deposits required to secure ingredient procurement and production are non-refundable. This is explicit in customer invoices (example: 70% non-refundable). Deposits cover raw materials, ingredient procurement, production scheduling, and related manufacturing costs; production begins after deposit receipt.
- Refund exceptions (operational reality): If deposit funds have not yet been spent (e.g., we have not procured raw materials or committed third-party purchases), a partial refund may be considered less incurred costs and third-party cancellation charges. Any such refund is discretionary and will be documented and itemized. Recommendation: write this assumption into SOW/invoice language so expectations are clear.
- Non-conforming goods / manufacturing defects: For goods that do not meet the agreed specifications (SOW / COA) we will, at our option, replace, rework or credit product that is proven non-conforming after inspection and testing. Customer must notify Custom Supplement in writing within 30 days of receipt and provide supporting documentation (photos, retained samples, COA, third-party test if applicable). We’ll coordinate return or disposition and handle the costs according to the cause (manufacturer defect vs. customer specification/error). (We issue COAs and coordinate third-party testing on request.)
- Damages in transit: Freight damage must be identified at delivery and reported to both Custom Supplement and the carrier. Claims for damage while in carrier custody are handled against the carrier; Custom Supplement will assist with documentation.
- Customer returns / restocking for client error: We will not accept returns for customer ordering errors without prior written agreement; if accepted, returns are subject to inspection, restocking fees, and freight/damage deductions. Recommendation: require clients to accept responsibility and provide example restocking fees (e.g., 20–35% depending on format).
Disputes & adjustments
- Invoice disputes must be raised within 15 business days of invoice receipt, with supporting documentation. Disputes do not automatically suspend payment obligations for undisputed portions.
- All credits/refunds are subject to verification and our ability to recover costs from suppliers; we will provide itemized statements supporting any refund or credit.
Billing contacts & payment instructions
- Invoices, bank / wire details, and payment links are included on each invoice. For ACH/wire instructions please use the bank letter / invoice attachment or contact billing@customsupplement.com. (Bank routing and wire details are captured in your Bank Letter and are provided on invoices.)
Sample invoice language
Deposit: A deposit of [X%] of the total (as shown above) is required to secure this order. Deposit covers raw materials, ingredient procurement, production scheduling, and related manufacturing costs. Production will begin upon receipt of deposit. Deposits are non-refundable except to the extent funds remain unspent after cancellation. (Example: “A 70% non-refundable deposit is required to secure this order.”)
Security Deposit
Purpose
The Security Deposit (aka order deposit) secures the customer’s obligations to fund hard COGS (ingredients and packaging) and production scheduling. The deposit enables our procurement of raw materials, scheduling of production runs, and protects Custom Supplement from being a financier of client inventory. This is explicit in your partnership documents and standard quotes.
Typical deposit structure
- Pilot / small orders and one-off runs: 70% non-refundable deposit is common for small runs where we must procure expensive ingredients or when the job is below our standard MOQ. Example invoice: “A 70% non-refundable deposit is required to secure this order.”
- Standard volume production: Deposit is set per quote / SOW and is confirmed on the PO. For many standard projects we require a meaningful deposit to fund components; the % will be quoted (often 25–50% depending on product and supplier lead times). (Doc precedent: “deposit and lead-time confirmed at PO.”)
- Large, credit-worthy customers: When long-term credit is approved, deposit percent may be reduced and manufacturing services billed Net-30 per the agreed terms (see Payment Terms).
When deposit is due
- Deposits are due when the PO or SOW is executed unless otherwise stated on the quote. Production / ingredient procurement will not begin without the deposit.
Non-refundability, forfeiture & offsets
- Standard rule: Deposits required to secure raw material procurement and production scheduling are non-refundable to the extent they have been expended (and in many invoices are explicitly non-refundable in full). Example: the 70% non-refundable invoice above.
- If costs have not been incurred: If the deposit has not been spent (no raw material purchases, no third-party commitments), Custom Supplement may, at its discretion, refund unspent funds less administrative charges and costs of cancellation. Recommendation: define a clear timeline and a specific calculation for recoverable costs (e.g., supplier cancellation fees, shipping charges, vendor minimums).
- Customer default/termination: If the client defaults, Custom Supplement will retain the deposit to cover incurred costs, including non-recoverable ingredient costs, supplier cancellation charges, and project overhead. Any unused balance after fully itemizing costs will be applied to existing invoices or returned within 30 days.
Returning unused deposit balance
- At completion we issue a final invoice showing deposit credit and remaining balance due. Any credit balance will be returned within 30 days or applied to future orders if the customer agrees. Recommendation: publish an explicit “refund timeline” (30 days) and mechanism (ACH/wire only).
Examples
- Quote total = $4,060. Deposit required = 70% → deposit due = $2,842; production begins on deposit receipt. (This mirrors a real invoice in your files.)
MOQs, Lead Times & Shipping
Minimum Order Quantities (MOQs)
- MOQs vary by format (stick packs, capsules, tablets, shots, cans, tubs). Pilot runs are available but priced differently. Your capabilities deck and intake sheets explicitly state that MOQs vary by format and that pilot runs are available.
- Standard example: your intake template shows a Standard MOQ: 25,000 units for many formats with an Estimated lead time: 12 weeks; the intake also flags orders below MOQ for review. Use this as the “default” reference.
Lead times
- Typical project timelines in your capabilities deck: 4–8 weeks post-approval for many projects; some formats or larger volumes are quoted at ~12 weeks. Confirm lead time at quote/PO.
Shipping & freight
- Who pays: Freight, shipping, and logistics are charged to the customer and will be itemized on invoices. (Your referral / rev-share docs and quotes list freight and logistics as billable items.)
- Options: We can ship via small-parcel carriers, LTL, or palletized freight. We also provide SIOC (ship-in-own-container) prep for e-commerce as needed.
- Terms: Recommendation: publish “FOB Custom Supplement (Henderson, NV)” as the default shipping term and add “freight prepaid and added to customer invoice unless otherwise agreed.” (Your quotes and vendor terms commonly require the buyer to pay freight/insurance.)
- Tracking & partial shipments: We provide tracking numbers and COAs on shipment. Our production tracker shows partial shipments and tracking numbers for orders in progress. Example tracking records are in production spreadsheets.
Short FAQ
Q: Are deposits refundable?
A: Deposits for ingredient procurement and production are generally non-refundable (see your quote/invoice for exact language). If funds haven’t been spent we may refund unspent amounts less cancellation costs; otherwise deposits are applied to incurred costs.
Q: What payment methods do you accept?
A: ACH/wire, credit card (via merchant gateway), and other commercial payment methods by arrangement. Wire/ACH details are provided on invoices and bank letter.
Q: How big is your MOQ?
A: MOQs vary by format. Our intake system shows a standard MOQ of 25,000 units for many formats; pilot runs are available and will be priced/quoted individually. Confirm on the quote.
Q: What’s your lead time?
A: Typical projects complete 4–8 weeks post-approval for many formats. Some products/formats and larger orders are quotable at ~12 weeks. Lead time is confirmed on the PO.
Q: What happens if a shipment is damaged?
A: Report damage immediately to the carrier and to Custom Supplement. We will assist with documentation and claims; responsibility for freight claims depends on the shipping terms and carrier. We will provide COAs and inspection support as needed.
