Cash Discounts

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memetic

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What kind of discounts (if any) are people giving to customers who pay cash? Just curious.
 
The job is $500.

How much if I pay cash?

$500.

But don't I save any money if I pay cash?

Sure, you save the $75 tax on the $500.

But shouldn't I pay less, though?

You are paying less. $75 less. My work is still the same. The tree didn't get 15% smaller but your payment did. Now if you're willing to make the job 15% smaller as fast as I just made your payment 15% smaller, we'll talk.
 
The job is $500.

How much if I pay cash?

$500.

But don't I save any money if I pay cash?

Sure, you save the $75 tax on the $500.

But shouldn't I pay less, though?

You are paying less. $75 less. My work is still the same. The tree didn't get 15% smaller but your payment did. Now if you're willing to make the job 15% smaller as fast as I just made your payment 15% smaller, we'll talk.

Do you guys have tax on tree work up there? Here, it is like quite the opposite of what you desribe...so I have been told.
All people around here do is talk CASH BUSINESS BAABY YEAH! Things like simple retail, soda machines- things like nickle and dime... which adds up.
Here, you are liable only on your end for any tax due on money made from tree work. GUESS THAT"S WHAT IS SO G-DAM APPEALING ABOOUT IT. Do you care for a soda? Hey look at the way I mispelled about... I didn't do it on purpose but since you are from Canada I will leave in your honor.
Really, you are truly THE MAN. What's this? Groundman 1? Well ,right on. Just from the short time I have read you I have a picture in my mind of you and that picture is , well I guess it would bear the resemblence of some almighty figure which represnts the epitomy of what a GROUNDMAN looks like... I guess. Everybody else just seems to love ya too. Don't stray to far from home, Tree MDS might abduct you.
Seriously , you are doing great work, haven't even seen any pics either. Trust me, I wish I never started climbing, I know I would be much better on the ground cause I know exactly what to do and WILL do it... quickly. Now where in the heck is Groundman 2?
 
No cash discounts. Never ever!

1. As Groundman said, the job didn't get any easier because it was paid with cash.

To the customer, I would ask:

2. "What are you suggesting: that I not report this income, and thereby cheat on my taxes?"

We all know that this happens, but I report all my income, cash or check. I don't even want to suggest to a customer that I might be an income tax cheat. That is not any different than telling the customer that they need to watch ME real close, because I am a cheater.

3. "What are you suggesting, that I had better get your money in cash, because your check is no good?"

4. If the customer thinks you are a tax cheat, they might just turn you in, thinking to get a reward. Who needs the hassle of an audit?

5. I really don't care to be thought of as a business that does a lot of cash business. It invites robberies.

6. There is no sales tax on tree service in our area, so there is no tax savings to the customer.
 
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Here is a simple solution, I hope it works for you as it has for me: Spend it, no deposit. How's that?

Indeed. You transform that cash directly into groceries and chains and files and gas and oil. It's not like it's going to the neighbourhood crack dealer and being moved out of the country. That cash is being put right back into the system at the retail level and keeping the other poor local shmucks employed.

I can live with the guilt.
 
1. As Groundman said, the job didn't get any easier because it was paid with cash.

To the customer, I would ask:

2. "What are you suggesting: that I not report this income, and thereby cheat on my taxes?"

We all know that this happens, but I report all my income, cash or check. I don't even want to suggest to a customer that I might be an income tax cheat. That is not any different than telling the customer that they need to watch ME real close, because I am a cheater.

3. "What are you suggesting, that I had better get your money in cash, because your check is no good?"

4. If the customer thinks you are a tax cheat, they might just turn you in, thinking to get a reward. Who needs the hassle of an audit?

5. I really don't care to be thought of as a business that does a lot of cash business. It invites robberies.

6. There is no sales tax on tree service in our area, so there is no tax savings to the customer.

Good thoughts there sir. Most of my cash is from the unexpected white envelope at the end of a job. If asked to knock off money from the bill for cash a drop 50 just so I don't have to make a withdrawl for folding money. Ya'll know what folding money is don't ya? Its money that don't jingle in your pocket, you fold it before you put it in, its worth more than the kind that jingles.
My brother seems amazed I pay any taxes... at all. He does ATM machines. I know he pays something but the rest of his shady shin-dig is avoidance. Most of my breaks come from being small and deducting ALL my expenditures like lovely saws and ropes and trucks with awesome tires and loaders to take out my trash and blowers to do my leaves and tools to make and break things with and wonderful bright shiny pulleys that sing when rope runs through them and the cost to have my sac shorn so I don't get swap arse in this dam heat. How about can I deduct the massuessesess? Aww the heck with it I don't care that last one was HOT!
 
Good thoughts there sir. Most of my cash is from the unexpected white envelope at the end of a job. If asked to knock off money from the bill for cash a drop 50 just so I don't have to make a withdrawl for folding money. Ya'll know what folding money is don't ya? Its money that don't jingle in your pocket, you fold it before you put it in, its worth more than the kind that jingles.
My brother seems amazed I pay any taxes... at all. He does ATM machines. I know he pays something but the rest of his shady shin-dig is avoidance. Most of my breaks come from being small and deducting ALL my expenditures like lovely saws and ropes and trucks with awesome tires and loaders to take out my trash and blowers to do my leaves and tools to make and break things with and wonderful bright shiny pulleys that sing when rope runs through them and the cost to have my sac shorn so I don't get swap arse in this dam heat. How about can I deduct the massuessesess? Aww the heck with it I don't care that last one was HOT!

Don't you eat in fancy restaurants (ok maybe applebees or whatever you're into) with your clients or for other business purposes? What about gifts for clients?
 
Don't you eat in fancy restaurants (ok maybe applebees or whatever you're into) with your clients or for other business purposes? What about gifts for clients?

No, its High colonics for everybody. Ok enough.
Actually, i think I will deduct for every minute I spend talking about work. You know i get a refund every year?
 
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Do you guys have tax on tree work up there? Here, it is like quite the opposite of what you desribe...so I have been told.
All people around here do is talk CASH BUSINESS BAABY YEAH! Things like simple retail, soda machines- things like nickle and dime... which adds up.
Here, you are liable only on your end for any tax due on money made from tree work. GUESS THAT"S WHAT IS SO G-DAM APPEALING ABOOUT IT. Do you care for a soda? Hey look at the way I mispelled about... I didn't do it on purpose but since you are from Canada I will leave in your honor.
Really, you are truly THE MAN. What's this? Groundman 1? Well ,right on. Just from the short time I have read you I have a picture in my mind of you and that picture is , well I guess it would bear the resemblence of some almighty figure which represnts the epitomy of what a GROUNDMAN looks like... I guess. Everybody else just seems to love ya too. Don't stray to far from home, Tree MDS might abduct you.
Seriously , you are doing great work, haven't even seen any pics either. Trust me, I wish I never started climbing, I know I would be much better on the ground cause I know exactly what to do and WILL do it... quickly. Now where in the heck is Groundman 2?
Tree MDS might abduct you, lol dan. No I got me a bucket queen ex line guy now. Cost is up to 20 bucks an hour but he does show and has a cdl so thats alot. I guess. I really dont like him though, guys real thin skinned, the other weekend he walked off the job because we were bustin his a$$ about his last name (I wish I could post it but it might get me in trouble), a grown man walking off the job because he got ranked on a little about his last name, lol. But this guy cost me more and is like so precious that I cant even order him around or he'll walk! 6 years must be the mark where they think they're all that, thats two now-no wait 3 this year (with 6 years exp.)that all think they're all special and really suck-at least by my standards. They dont want to be told how to do anything! how do they expect to learn? They think 20 years is just a number but its more than that in reality. It means I know this stuff pretty well and they should have respect and listen up some.
 
I've also got another guy that would be a dream grounguy but they wont let him drive. What a shame that is this guys an animal and is well trained too. I would gladly give him 20 bucks an hour to be ground dog 1.
 
In WI there is tax on all goods and services that are not deemed a necessity. So pretty much snow removal is not taxed. Mowing may be exempt too, I tried looking at Pub 201 from the WI DoR but looks like their server is down.

http://www.dor.state.wi.us/pubs/pb201.pdf

As for ASD's comment on depositing, and others on reporting...if you have a high revenue and with a lot of it unreportable, how do you pay for those things that you want to write off? What do you do if you start accumulating thousands of dollars in your "kitty"? I've heard of fires wiping that stuff out, or former employees breaking into the safe.

A little here, a little there maybe, why carry around hundreds of dollars. I cna remember a $500 job where I could not remember where I stuck the wad of bills at the end when I was going to divvy it between the crew. That was 20 min of sweating!
 

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