Gently Switching Customers to Pay-in-Advance - Electrician Talk - Professional Electrical Contractors Forum
CLICK HERE AND JOIN OUR COMMUNITY TODAY, IT'S FREE!
Go Back   Electrician Talk - Professional Electrical Contractors Forum > Business > Business, Marketing, and Sales


Like Tree17Likes
  • 3 Post By 480sparky
  • 1 Post By Majewski
  • 1 Post By HackWork
  • 2 Post By macmikeman
  • 3 Post By Tiger
  • 2 Post By HackWork
  • 1 Post By PlugsAndLights
  • 4 Post By readydave8
Reply
 
Thread Tools Display Modes
Old 06-12-2016, 10:57 PM   #1
Senior Member
 
Join Date: May 2013
Location: Ca
Posts: 123
Rewards Points: 230
Default Gently Switching Customers to Pay-in-Advance

I have some customers who takes too long to pay me. He they are ok guys or I wouldn't work for them, but now that when they pay up I am going to have to ask for payment in advance before I go there again so I don't get strung out any more.

Any advice on how best to broach the news to them gently? Most likely it will be a deposit on a credit card and I will refund the difference.
Jerome208 is offline   Reply With Quote
Join Contractor Talk

Join the #1 Electrician Forum Today - It's Totally Free!

ElectricianTalk.com - Are you a Professional Electrical Contractor? If so we invite you to join our community and see what it has to offer. Our site is specifically designed for you and it's the leading place for electricians to meet online. No homeowners asking DIY questions. Just fellow tradesmen who enjoy talking about their business, their trade, and anything else that comes up. No matter what your specialty is you'll find that ElectricianTalk.com is a great community to join. Best of all it's totally free!

Join ElectricianTalk.com - Click Here JOIN FOR FREE


Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ElectricianTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

Sponsored Links
Advertisement
 
Old 06-12-2016, 11:01 PM   #2
I own stock in FotoMat!
 
480sparky's Avatar
 
Join Date: Sep 2007
Location: Cornpatch USA
Posts: 39,118
Rewards Points: 6,520
Default

I generally find not working for them again works best.
MechanicalDVR, d2043 and LuckyLuke like this.
__________________
I'm 480Sparky, and I approved this message.
480sparky is offline   Reply With Quote
The Following User Says Thank You to 480sparky For This Useful Post:
Teaspoon (07-02-2016)
Old 06-12-2016, 11:06 PM   #3
Big nosed attic troll
 
Majewski's Avatar
 
Join Date: Jan 2016
Location: In a van down by the river!
Posts: 7,568
Rewards Points: 2,820
Default

If you already have issues, who's to say they don't get the charge reversed? I'd demand a check up front, cash it at their bank. If they're so stand up, they'll do it. Otherwise as 480 says, don't work for them.
MechanicalDVR likes this.
Majewski is offline   Reply With Quote
The Following User Says Thank You to Majewski For This Useful Post:
obdaleccio (10-29-2016)
Sponsored Links
Advertisement
 
Old 06-12-2016, 11:06 PM   #4
Liberal Lesbian
 
HackWork's Avatar
 
Join Date: Oct 2009
Location: N/A
Posts: 38,877
Rewards Points: 1,038
Default

Quote:
Originally Posted by Jerome208 View Post
I have some customers who takes too long to pay me. He they are ok guys or I wouldn't work for them, but now that when they pay up I am going to have to ask for payment in advance before I go there again so I don't get strung out any more.

Any advice on how best to broach the news to them gently? Most likely it will be a deposit on a credit card and I will refund the difference.
Communication is key. If they are decent guys, then a conversation is all you need. If that doesn't cure your issue, then they aren't decent guys.
arthur17 likes this.
HackWork is online now   Reply With Quote
Old 06-12-2016, 11:08 PM   #5
Senile Member
 
macmikeman's Avatar
 
Join Date: Jan 2007
Location: Honolulu
Posts: 29,610
Rewards Points: 21,597
Default

Paid up front is great. Get it in Harriet Tubmans. All of it, and don't do any ''extra'' work without collecting upfront also. They are going to set you adrift once you tell them the new conditions though.
Majewski and arthur17 like this.
__________________
I stand with Tucker Carlson
macmikeman is online now   Reply With Quote
Old 06-13-2016, 01:32 AM   #6
Senior Member
 
Switched's Avatar
 
Join Date: Dec 2012
Location: Communistafornia
Posts: 6,841
Rewards Points: 10,410
Default

Jerome... If you are actually in Cali and if you are doing it to residential.....you would be in violation of the contracting laws.

Try putting the progress payments complete with the scope of work accomplished and payment date in the contract.
Switched is offline   Reply With Quote
The Following User Says Thank You to Switched For This Useful Post:
Lep (06-25-2016)
Old 06-25-2016, 01:35 PM   #7
Senior Member
 
Join Date: Jan 2008
Posts: 1,330
Rewards Points: 1,208
Default

My business is COD. If I need to send an invoice and a statement, we aren't going to be doing business together. A bit off topic, but to the GC who called me at 6am on a Sunday for a non-emergency...we aren't doing business together either.
readydave8, flyboy and arthur17 like this.
__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Tiger is offline   Reply With Quote
Old 06-25-2016, 01:42 PM   #8
Liberal Lesbian
 
HackWork's Avatar
 
Join Date: Oct 2009
Location: N/A
Posts: 38,877
Rewards Points: 1,038
Default

Quote:
Originally Posted by Tiger View Post
My business is COD. If I need to send an invoice and a statement, we aren't going to be doing business together.
This is how I started my business. And for the most part I have stuck with it. But in some situations I have been lenient and it hasn't hurt.

There are countless examples that I don't want to bore people with. But in some situations it just works out that way. I found that when I was being so hard headed as to demand payment that very second, I looked a bit unreasonable in some situations.
readydave8 and Service Call like this.
HackWork is online now   Reply With Quote
Old 06-25-2016, 07:36 PM   #9
Safety Pin Member
 
PlugsAndLights's Avatar
 
Join Date: Jan 2016
Location: Eastern Ontario
Posts: 2,255
Rewards Points: 2,880
Default

Quote:
Originally Posted by Tiger View Post
My business is COD. If I need to send an invoice and a statement, we aren't going to be doing business together. A bit off topic, but to the GC who called me at 6am on a Sunday for a non-emergency...we aren't doing business together either.
Seems reasonable to me. I'm usually prevented from billing on
site cuz I'm not organized enough to have all my material prices
with me. Have to add it all up when I get home. Maybe I should
work on this.
P&L
arthur17 likes this.
__________________
Malignant narcissism is a psychological syndrome comprising an extreme mix of narcissism, antisocial personality disorder, aggression, and sadism.[1] Often grandiose, and always ready to raise hostility levels, the malignant narcissist undermines organizations in which they are involved, and dehumanizes the people with whom they associate.
PlugsAndLights is offline   Reply With Quote
Old 06-26-2016, 08:59 AM   #10
Liberal Lesbian
 
HackWork's Avatar
 
Join Date: Oct 2009
Location: N/A
Posts: 38,877
Rewards Points: 1,038
Default

Quote:
Originally Posted by PlugsAndLights View Post
Seems reasonable to me. I'm usually prevented from billing on
site cuz I'm not organized enough to have all my material prices
with me. Have to add it all up when I get home. Maybe I should
work on this.
P&L
I use my iPad for my estimating and invoicing. You can use an app that will contain all your material prices as well as prices for services your perform. This way you can bill on the spot.
HackWork is online now   Reply With Quote
Old 06-26-2016, 09:27 AM   #11
Hackenschmidt
 
splatz's Avatar
 
Join Date: May 2015
Location: Parts Unknown
Posts: 10,081
Rewards Points: 2,794
Default

Just blame it on the economy / other customers, tell them you have too many outstanding invoices to extend any more credit, you need cash now. They will know without you saying that they have been part of that problem.

The main thing is don't get too extended with them so they're stringing you along. Let them get behind and they have all the leverage. Make it clear that work stops if progress payments are not made in a timely manner, and structure the payments so you're never going to hesitate to walk away.
__________________
The more you know, the less you need.
splatz is offline   Reply With Quote
Old 06-26-2016, 11:49 AM   #12
neutral member
 
readydave8's Avatar
 
Join Date: Sep 2009
Location: Clarkesville, Georgia
Posts: 1,691
Rewards Points: 316
Default

Quote:
Originally Posted by PlugsAndLights View Post
Seems reasonable to me. I'm usually prevented from billing on
site cuz I'm not organized enough to have all my material prices
with me. Have to add it all up when I get home. Maybe I should
work on this.
P&L
I typed out prices on everything I stock in truck, pencil in new prices if different when I buy more.

If I buy something for job I keep receipt in truck until I write bill.

Nowadays I don't keep up with prices as well as I used to, if I need a price I can google item on smart phone.

I don't know why, but prompt billing improves collection success. Best way is to bill and get paid before I leave jobsite or home.
Teaspoon, flyboy, splatz and 1 others like this.
__________________
Dave Ruth
readydave8 is offline   Reply With Quote
The Following 3 Users Say Thank You to readydave8 For This Useful Post:
flyboy (06-26-2016), HackWork (06-26-2016), Teaspoon (07-02-2016)
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Do You Ever Have To Explain Basic Electrical Concepts To Customers? Cricket General Electrical Discussion 55 05-21-2016 08:20 PM
Switching between different DC power supplies Laessen General Electrical Discussion 1 03-18-2016 03:21 PM


All times are GMT -4. The time now is 10:44 PM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.1
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
Our Pro Sites Network
ContractorTalk.com | DrywallTalk.com | HVACSite.com | PaintTalk.com | PlumbingZone.com | RoofingTalk.com