Receive Versus Payment - RVP

Everyone’s going nuts over all of those online meal delivery services, so we decided to try our hand at creating a local version. Almost all of the ingredients in our cook-to-order meals are sourced right here in our home state of Florida, and we only deliver within a 50-mile radius of our food prep facility. So far, it’s going really well. In fact, our sister Delilah is one of our most consistent clients, but we learned a long time ago that RVP is the MVP of any sales we make to her.

What’s “RVP?” It stands for “receive versus payment,” and it basically means that, when we deliver something, we want to be paid, in cash, right then and there. Delilah used to have an awful habit of telling us to “put it on her tab” whenever we delivered her meals, and at first we were glad to oblige, but that’s no way to run a business. Now we’ve got a deal: we won’t give her the food unless she forks over the cash for it when we get there.

We see RVPs a lot in the investment and trading world since they’re a good risk mitigator. Sellers don’t have to worry about a buyer defaulting or not honoring an order if they don’t get what they want unless they pay for it in cash right when they get it. RVPs can also help out buyers, since they’re not shelling out money for something before they actually take possession of it.