Asking for payment

[AVI_8]

unless you was planning to not pay , why would anyone have a gripe about paying half up front? sounds fair to me

To be devils advocate, in case you pay money up front then then the company goes bust and you’re left with nothing. It happens often.
The only time I’d ever pay anything up front would be to buy materials and they were delivered to my house.

 

[steveo3002]

To be devils advocate, in case you pay money up front then then the company goes bust and you’re left with nothing. It happens often.
The only time I’d ever pay anything up front would be to buy materials and they were delivered to my house.

fair point...see i would have paid up no questions lol

 

[AVI_8]

fair point...see i would have paid up no questions lol

I’m wary because I have a son who worked as a sales rep for companies in the home improvement industry, “winding up” a limited company once a year and starting afresh with a new company name is extremely commonplace. Which is a shame for the 90% of companies who are totally honest including the OP I’m sure, trust is difficult when dealing with strangers, maybe I’m unreasonably sceptical.
If I knew the contractor personally I’d be happy to pay a deposit up front though.

 

[roofman]

No retail or any kind of shopping you can acquire goods without payment first (without agreed terms)...if i sense something not right with my customers, then i utilize whats in my contract that goes with every estimate and they sign and send it back to me..It states i have the right to request 60% of the full cost of job on the 1st day of commencement of works. If i ever do take a nose bleed on a none payer then i have only lost my profit and not costs.

 

[James1979]

No retail or any kind of shopping you can acquire goods without payment first (without agreed terms)...if i sense something not right with my customers, then i utilize whats in my contract that goes with every estimate and they sign and send it back to me..It states i have the right to request 60% of the full cost of job on the 1st day of commencement of works. If i ever do take a nose bleed on a none payer then i have only lost my profit and not costs.

Did you get that drawn up to suit you?

Asking because it’s something I’ve toyed with but never pursued.

I’ve just gone with half up front etc but an actual contract would be handy.

 

[roofman]

Did you get that drawn up to suit you?

Asking because it’s something I’ve toyed with but never pursued.

I’ve just gone with half up front etc but an actual contract would be handy.

Yea its something i have tweaked and added too for the last 20 years, since humanoids starting becoming very devious

 

[reb78]

It’s 50% up front here and rest on delivery unless I know you etc.

One bloke I’ve never worked for has just got me to do a load of titanium stuff. Asked for materials up front. Didn’t even blink. That tells me a lot

I offer before they ask if someone is buying materials for a job for me. Plumber should be coming soon to redo parts of the central heating - a thermal store will be installed - i offered to pay for it at the outset - i want him to come!

 

[Trevorleach]

I offer before they ask if someone is buying materials for a job for me. Plumber should be coming soon to redo parts of the central heating - a thermal store will be installed - i offered to pay for it at the outset - i want him to come!

We had builder in, I bought all the gear, made sure he had a fridge with milk/food/biscuits, as same as you I wanted him to A turn up and B come back the next day and so on.

 

[James1979]

I offer before they ask if someone is buying materials for a job for me. Plumber should be coming soon to redo parts of the central heating - a thermal store will be installed - i offered to pay for it at the outset - i want him to come!

That’s decent of you.

From my end I’d decline and ask for the money. Two reasons.

First it’s a warranty thing. If you supply something and I fit it then where does that leave us if it goes wrong.

Second. Money. I can get the parts cheaper, ex vat, add profit then vat and it’s the markup on materials that makes the difference to me on some jobs if I do it or not.

I’ve just done one, parts were about 10x labour and that was cost price. I don’t rip people off by any stretch but if I didn’t make x% on the parts it wouldn’t have been that worth it to be fair. I’d have still done it because he’s a regular customer but….

 

[addjunkie]

Must admit with trades I buy the materials and they are here ready for them. But don't disagree on the warranty front. I do it as I know most of them struggle to buy the gear, as they are just little guys and are happy to not have the financial risk.

Guess it depends on the job and who your dealing with.

For my steel framed building kit I ordered 20k he wanted 10% with order. Once built it was on his wagon in my drive, he wouldn't unload it till I paid. Didn't seem unreasonable to me, easy enough to do with BACs. This was all agreed in advance.

 

[reb78]

That’s decent of you.

From my end I’d decline and ask for the money. Two reasons.

First it’s a warranty thing. If you supply something and I fit it then where does that leave us if it goes wrong.

Second. Money. I can get the parts cheaper, ex vat, add profit then vat and it’s the markup on materials that makes the difference to me on some jobs if I do it or not.

I’ve just done one, parts were about 10x labour and that was cost price. I don’t rip people off by any stretch but if I didn’t make x% on the parts it wouldn’t have been that worth it to be fair. I’d have still done it because he’s a regular customer but….

Oh, I would have given him the dosh and trusted his markup wasnt silly. People have to make money as you say. That would get round the warranty issue too.

I've just ordered the balcony i mentioned in a thread a few months ago. Offered to put a deposit down but they are fine without. Always maintains a better relationship that way.

 

[AVI_8]

Must admit with trades I buy the materials and they are here ready for them. But don't disagree on the warranty front. I do it as I know most of them struggle to buy the gear, as they are just little guys and are happy to not have the financial risk.

Guess it depends on the job and who your dealing with.

For my steel framed building kit I ordered 20k he wanted 10% with order. Once built it was on his wagon in my drive, he wouldn't unload it till I paid. Didn't seem unreasonable to me, easy enough to do with BACs. This was all agreed in advance.

Similar with my workshop, it’s a log cabin style, came from Lithuania but the company had an HQ in the UK, they wanted a 30% deposit, we agreed on 10% when the HGV arrived with it I made the bank transfer before it was unloaded.
I did a lot of research on the company before I trusted them with even a 10% deposit.
Having been stung very badly in the past when I had a business I’m very distrusting of the human race.

 

[Farside]

Never had trouble with the Showmans Guild or the real gipsys used. to do a lot of work for them
The others No way

Ditto. Used to fit blinds to showmen's caravans - proper little palaces, they were.
Always got paid on the dot.

 

[cianh91]

Iv worked for all sorts and always found the ones people talk bout being the best to pay hardest get money from . As regards 100% up front I’d tell you to jog on way above standards for anyone in my eyes . I base my deposit on materials and minimum loss if I’m making gates for someone that cost 700 and I’m charging 2000 say I’ll get 850 deposit and if they don’t pay il sell on for 1200 quick sale

 

[northwest]

There is one other scenario nobody has mentioned that I have had a near miss with lately: That is the customer ordering something bespoke (I hate that word) and then dying on you.
Tomorrow I am off to a few places that I have ordered stuff from and I am going to pay them in full even if the work isn't finished (tooling mostly) as I nearly wasn't here last week! I am paying all my suppliers and accounts on invoice too so if anything untoward happens nobody is going to have a mess to sort out.

 

[mtt.tr]

I started to have customers buy materials sold it as if I disappear you have materials to complete the work.

Kept me under vat aswell I gave up on making on materials as it was getting ridiculous

 

[highseas]

any gate or railing I do I ask for the materials + a bit the rest on completion and satisfaction!
Paid in full on the day or for farmers /other bigger set ups at the end of the month.

All
My invoices state if their not paid by the term date then %15 gets put on!

Getting materials paid upfront makes bigger jobs doable even for me

 

[brightspark]

I started to have customers buy materials sold it as if I disappear you have materials to complete the work.

Kept me under vat aswell I gave up on making on materials as it was getting ridiculous

i was just under the vat threshold supplying tons of gear. my main 3 punters pay for there own gear now and i just supply labour

 

[premmington]

i was just under the vat threshold supplying tons of gear. my main 3 punters pay for there own gear now and i just supply labour

VAT threshold in frozen at £85k - but just everything is going up.

VAT registration will be coming for a lot of people in the coming year I think?