Pre-pay of deposit? It sometimes seems neither one of them ever helps your cash-flow on top of those 30 day commercial accounts who take their sweet time. Of course prepay is the ulitmate way to go but now it seems inevitable that I must use those credit card machines. What should I expect? And does it help?. What do most of you use with type of payment?
Thanks
Posted by Rick Beisiegel (Member # 3723) on :
I prefer a deposit. Believe it or not, I don't like prepay. I love to get a final payment upon completion. It is a great motivator! If the job is paid for in advance, I tend to work on stuff thet brings in more cash flow, and may ignore something that is paid for.
As for credit cardes, I would'nt be without my CC station! Last year, I did $10,000 in cc sales. Would I have gotten the work anyways? Who knows. Just be sure to shop for a great rate, and ask about monthly fees. If you forget to ask about those, they can delete any profits, so watch the bank sharks!
Regards,
Posted by Joe Rees (Member # 211) on :
To my surpeise, I did $25,000 in credit cards last year, most of it pre-paying for small jobs under $400. It really changed my perception of deposits. I can hardly be bothered anymore with accepting half down for anything under $400, and strongly discourage deposits for jobs less than $100. Basically anything under $100 is considered pre-pay now. I've gotten used to asking for it and customers don't seem to resist much, particularly if an order is being taken over the internet or the phone.
Posted by Mike Pipes (Member # 1573) on :
Pre-pay in full via credit or debit card is the way!
When a customer pays me in full, to me it's a motivator to get the job done quickly because I don't like having that hanging over my head. I'm more likely to knock a job out quickly just to get it done and out the door ASAP this way.
I don't do deposits on most of my jobs mostly because they're internet orders. It's easier just to bill the whole thing up front and that's what the customers expect.
I don't like dealing with checks, sometimes they get a little rubbery if ya know what I mean. Times are changing now and most people don't carry the cash on their person anymore, instead they use debit cards and credit cards for convenience.
95% of my jobs were paid with credit or debit cards in 2003. The other 5% were done with paypal or money orders.
If you have work to do and no cashflow to work with, you aren't charging enough for the work you do have. Even so, I wouldn't front the costs out-of-pocket to start a job, it's not like retail where you know eventually the inventory is going to sell and you'll make your dime back on it. I have some materials here that have been hanging around for a couple years.
Posted by Sheila Ferrell (Member # 3741) on :
I'm like you Rick, it takes all the fun out of it if I ain't got nothin' to look forward to . . .
With first-time customer's, I state it "1/2 down-balance upon completion". If they write a check, I wait 'til it clears the bank to start.
With regulars I don't worry 'cuz they always pay on pick-up or installation, or I'll get it net 30 or 60.
I don't take credit cards, but they can take that thing to the bank an' get my cash if they want to
The "cash flow" thing is a good reason not to have yer head so far up your butt that you are "too good" to take little jobs. (I'm so sorry, I kno' there's no one here like that, lol) but You can keep a lotta dinner-out, grocery/snax and gas cash on hand by letterin' a car tag or a coupl'a mail boxes or some kid's back windshield.
![[Smile]](smile.gif)
Even so, I wouldn't front the costs out-of-pocket to start a job, it's not like retail where you know eventually the inventory is going to sell and you'll make your dime back on it. I have some materials here that have been hanging around for a couple years.
![[Wink]](wink.gif)
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