Estimating blues

[TreeMonkey]

When you guys quote a job for a customer...do you:

1. Ask for a deposit?
2. Have customer sign the estimate prior to work beginning?
3. use specific disclaimers on your estimates?
4. etc............

Just trying to gauge what the norm is. If anyone has an estimate in pdf or other format...that would be great!

Thanks,

TM

 

[NeTree]

Yes to all of the above.

 

[MasterBlaster]

A deposit?

 

[Sep]

We do all of the above on our estimates. We get most of our work from word of mouth, so the people we hire us know we aren't scam artists. We work for lots of people who don't pay us for 15-30 days after they receive invoice for job. So for large jobs($4k-5K+) we get deposits, its not our companys responsibility to finance work for our costumers. In a perfect world when the job was over the people would get you the check within a couple of days, but other than small jobs this rarely happens. I've been considering accepting credit cards as another payment method. How our they working out for those of you that do?

-Sep

 

[SilverBlue]

All payments are due at the completion of the job unless previously agreed on. For some seniors who can’t afford to pay all at once I have no problem setting a payment schedule, it helps them out and you get the job. However for those who allow another service to move in on our signed contract get an invoice for a percentage from 10-30%. Established customers are rarely a problem, those surfing the yellow pages are the ones that cause problems. I't time to order new estimates so I need to refine a few details to reflect the changing market.

 

[NeTree]

Rocky...

On the other hand, collecting a (token) deposit ensures that person is serious about having the work done, and not just blowing sunshine up your tail.

Been burned one time too many on large jobs where I've moved equipment around, scheduled cranes, etc. only to have them call at the last minute and say they've decided to just wait 'til next year (for example).

Get a 10% deposit. If they're serious, you'll do the work and they'll owe you 10% less at the end of the job.

If they're playing games, they won't give the deposit, and you'll know they're not serious.

If they change their mind like underwear, at least you have the 10% to cover the time and work of setting the whole thing up only to be canceled at the last second.

Oh, and payment in full is due upon completion. Only exceptions are my sub orders.

Checks? No f-ing way. Not anymore. Burned too many times on those, too. I'm not a credit company, I'm a tree service.

 

[Dadatwins]

Usually get a written estimate, discuss all details of job with customer, ie: What equipment will be brought on to property, estimate of how long job will take, what needs to be moved, like flowers or other landscape items that should be moved or sacrificed. As far as deposit, I have never asked for one, but I am small operation and typically do not do large scale work. I do not think it is a bad idea for a large scale job to secure part of the job up front to be sure customer is serious. Make clear at time of estimate that payment is due after job is completed. Most of my work comes from recomendations so I have no problem taking checks for work but cash has always been the preferred method of payment. Always carry a receipt book to give customer receipt for any cash payments and keep copy for yourself.

 

[Treeman14]

1. No deposit.
2. Signed estimate/contract
3. Terms and conditions in fine print at bottom of estimate/contract
4. Signed written permission to access neighboring property if needed.

Erik, no checks??? You mean you accept only cash?

Credit cards are good for unexpected work like lightning strikes and hurricanes. Not everyone has a couple extra grand in their checking account.

 

[Koa Man]

On my proposals I have in 14 pt. bold red letters right above their signature line the following statement.
YOUR SIGNATURE BELOW WILL CONSTITUTE A BINDING CONTRACT. CANCELLATION IS SUBJECT TO A CANCELLATION FEE OF 25% OF THE CONTRACT PRICE.

I put that in years ago after one customer cancelled because he found someone "cheaper." I've had no cancellations of signed contracts since, more than 15 years.

I asked for a deposit only once. A $17,000 private residence job, new customer. He handed me a check for $8500 along with the signed contract.

 

[Stumper]

Deposits -no. Payment due upon completion. Progress payments may be requested on jobs totalling over $1200 Really only worry about it if the job is bigger than that.-on a $5000 job I like to get some money a couple of days into so that I can't get burned big time. Cash,checks and credit cards. If I had it to do over I wouldn't do credit cards-Little demand.
Signed contract-not unless the customer desires it-They get a written bid which I retain a copy of-not much room for dispute.

Erik, Checks are a problem? I have gotten only one bad check that wasn't made good (3-4 that I had to resubmit or call the customer about) in the last 19 years. The one bad one was for $100 from a contractor-Guess who I DID NOT recommend for remodeling work after that?

 

[NeTree]

I've not been "burned" by checks... they always make good on them. I just don't like the frigging hassle of getting one that bounces.

Oh, and I meant no PERSONAL checks. Bank checks are fine.

 

[coffeecraver]

I do 1/3 down balance upon compleation

 

[Guy Meilleur]

Often clients will ask if they should put down a deposit. In those cases I say sure, 1/3 or 1/2, for the reasons Erik gave. In all cases good to get their sig and make terms clear.

 

[Nickrosis]

Originally posted by netree
I've not been "burned" by checks... they always make good on them. I just don't like the frigging hassle of getting one that bounces.

Oh, and I meant no PERSONAL checks. Bank checks are fine.

You mean they have to get a cashier's check or something from the bank? That's a real hassle for not a lot of benefit, IMO. We're mostly upon receipt, but a lot of the terms are net in 30 days.

We average 9 days for payment for all our work. To figure this out for your company, divide your annual sales by your average accounts receivables. This is your annual cycle or turnover per year. Divide 365 by your cycle.

Sales: $100 / AR: $10 = 10 cycles/year

365/10=36.5.....your customers average 36.5 days to pay.

 

[NeTree]

Hassle for who? The customer? Too bad. Getting a bad check is a hassle for me. Benefit? Bank checks are guaranteed funds, and can't bounce.

 

[Nickrosis]

But how often does a check ever bounce? It's so rare, it's not worth hassling the customer, again, IMO....

 

[Stumper]

I have to agree with Nick. Perhaps things are different in your area Eric but here Homeowners are generally very responsible people. I have practically no concern about checks bouncing.

 

[NeTree]

How do you define often?

Once a year? 10? 100?

I don't care. I don't take personal checks, period. It's not open to debate.


Credit/Debit cards, cash, bank checks... plenty of other means out there.


You know what they say... it only takes one a$$hole to spoil it for everybody.

 

[NeTree]

Well you know, we're so low-class out here as compared to CO and WI... of course we have to worry about it.

 

[Stumper]

Erik, Tell us the story about John F. Kerry writing you a bad check and Teresa saving his Heinzie.