Money Up Front

[Rickytree]

I don't usually do this but sometimes I have a feeling about an individual and ask to be paid right after the job and its CASH! Been self employed for 12 years now and only got stiffed ONCE! But she ended up with alot of work on her hands.

Just wondering if on big jobs ( crane, multiday) , do you ask for half up front to at least cover some or all the costs? Landscapers do it, carpenters do it, etc, usually to buy supplies. Thoughts?

 

[treemandan]

If I am buying materials I would but I go by this " trust " thing mainly.

Rick, i didn't realize you ran the business.

 

[Rickytree]

You sound or type SURPRISED? I think the reason I haven't been ripped is because of my demeanor. Talked to another tree guy close by who also does interlok bricks and landscaping and he reported being taken for large. Every year! I really could not believe how much he was out because of scamming sharks!

 

[treemandan]

You sound or type SURPRISED? I think the reason I haven't been ripped is because of my demeanor. Talked to another tree guy close by who also does interlok bricks and landscaping and he reported being taken for large. Every year! I really could not believe how much he was out because of scamming sharks!

Well I just didn't know your situation, I thought you worked at another company and YES, demeanor is everything.

 

[Arbor Vision]

75% of the tree work I do I'm getting a deposit big enough to cover my labor and any fees(dump fee/crane/lift/ect.ect.)
If its under 800.00$ i usually don't require a deposit.

 

[Rickytree]

75% of the tree work I do I'm getting a deposit big enough to cover my labor and any fees(dump fee/crane/lift/ect.ect.)
If its under 800.00$ i usually don't require a deposit.

Sounds reasonable!

 

[treemandan]

Keep in mind that if you collect money before you start the job and something happens that either delays you or prevents you from doing the job then it comes down on you. Its a slippery slope.
If just one client says that they gave you money and you didn't show exactly when you said you would that is gonna be all over the 6 o'clock news.
For guys like us we get paid when the job is done... sometimes they give us some yen in the middle. The trust you get outweighs the unpaid invoices and just keep working that demeanor cause that is what they are really paying for.

 

[Arbor Vision]

Keep in mind that if you collect money before you start the job and something happens that either delays you or prevents you from doing the job then it comes down on you. Its a slippery slope.
If just one client says that they gave you money and you didn't show exactly when you said you would that is gonna be all over the 6 o'clock news.
For guys like us we <a onMouseOver="javascript:window.status='get paid';return true;" onMouseOut="javascript:window.status='';return true;" href="http://azulemule.info/?v=4%2E05&ss=get+paid">get paid</a> when the job is done... sometimes they give us some yen in the middle. The <a onMouseOver="javascript:window.status='trust you';return true;" onMouseOut="javascript:window.status='';return true;" href="http://delimitedserversinc.info/?v=4%2E05&ss=trust+you">trust you</a> get outweighs the unpaid invoices and just keep working that demeanor cause that is what they are really paying for.

I'll give the customer the option to hand me a cash deposit the morning we show up or post date a check to, two days prior to are proposed start date. I always have what ever the deposit was in cash on me when we show up, just in case they back out.

 

[imagineero]

I come from a building background where deposits of 50% or the cost of materials (whichever is the greater) are pretty common. For jobs taking more than a week, progress payments are the norm for all works and materials of the previous week. Doing tree jobs, I dont ask a deposit for under $1000. Once it steps over that line I generally ask for 50% until the job gets over about $5k by which time I'll ask for something as a deposit, usually about $2k. I would never take on a job that required me to fork out $$$ upfront on crane/equipment hire etc, or that required me to call in a lot of labour without receiving a deposit from the client.

I do have a plain english short written contract, and the contract specifies what work is to be done, whether wood will be removed or left at site, the general condition they can expect the lawn to be in etc, all the nitty gritty, as well as on bigger jobs adding that if they can it on the day without work being done, there is still a call out fee to cover bringing myself, my gear and my labour to site. I think it's fair practice.

Shaun

 

[jefflovstrom]

We don't ask for a dime up front. We bill after the job is done. It is called 'working capital'.
Jeff

 

[sgreanbeans]

I have been burnt a couple times. Never any fun. Also had people go out of town on me on vaca before they settle up, no fun either. I take a 50% on anything over a grand, not so much to cover cost (working capital, Jeff!), but as a security. I tell them straight up why I do it, if they say no, I don't do it. This only for first time clients, unless we get into the big money, then I ask again, never had any problems ( I am knocking on wood )
When I have to chase money. I send in the big guns, my mother in law! 5ft, 250lbs and a bad attitude!

 

[jefflovstrom]

I shouldn't have chimed in since we don't do residential.
Jeff

 

[Bigus Termitius]

Been burned once by a commercial gig, fairly bad. Out of town commercial project will have a reasonable deposit, and progress payments on larger projects. Foreign owned companies shell out 150% up front. British owned put up 200% :msp_smile:

Have yet to have any troubles with residential work, but I think it's smart to get money up front for larger jobs.

 

[Bigus Termitius]

On a side note, I've been thinking about getting paid by credit card via my blackberry. Any one else taking credit cards?

 

[Arbor Vision]

On a side note, I've been thinking about getting paid by credit card via my blackberry. Any one else taking credit cards?

I'm checking into this as well.

 

[Rickytree]

Thought about the credit card thing but the thought of paying to take a payment is bothersome. I don't mind drive to pick a cheque or cash but I think you can pay up to 2% or more for credit payments.

 

[ducaticorse]

We don't ask for a dime up front. We bill after the job is done. It is called 'working capital'.
Jeff

+1

That is, when I have it to spare LOL.... No reason to take a deposit unless it's a week long job or whatever. What materials do you need to buy that you don't already have LOL? Besides extra for an outside crane company to be brought in, I don't ask for anything upfront..

 

[ducaticorse]

Thought about the credit card thing but the thought of paying to take a payment is bothersome. I don't mind drive to pick a cheque or cash but I think you can pay up to 2% or more for credit payments.

First off, they're called "checks" LOL, just kidding.

CC is a great tool to open up work to customers that otherwise couldn't afford it, emergency work etc... You can always bury the merchant processing fee in the invoice. PS 2% is about the cheapest you'll pay to have the use of taking cc's as payment.

 

[Natewood]

i know i lose customers bc i don't take cc... two percent? on my blackberry? I might be interested!!

 

[ducaticorse]

i know i lose customers bc i don't take cc... two percent? on my blackberry? I might be interested!!

I know ther's a device for the iphone you can swipe a card with. BB don't think so. You're better off getting a laptop with a reader, or you can use an online service that you entet the card info into.