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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.
 

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Big nosed attic troll
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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.
 

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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.
 

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Senile Member
I make all the electrons line up for their Flu shots
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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.
 

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Arsholeprentice
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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.
 
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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.
 

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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
 
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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.
 

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Hackenschmidt
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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.
 

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neutral member
ELECTRICIAN!!!
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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.
 
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