Yes it is the law but maybe the law needs to change. id call it theft when someone has got materials which i purchased and they have asked for in their houses and they have not paid for it. It seems all the big companies are covered but nothing for us legitimate tradesmen.
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Yes it is the law but maybe the law needs to change. id call it theft when someone has got materials which i purchased and they have asked for in their houses and they have not paid for it. It seems all the big companies are covered but nothing for us legitimate tradesmen.
I would also call it theft. Even if a customer does pay the full bill eventually, they have taken the cost of that invoice as a free loan from you.
The law has no teeth, except where you have a customer who has a good respectable job and stands to be embarrassed and possibly the money taken from their salary by the court if it has to.
Best to always cry poverty to each customer. Also insist on stage payments on bigger jobs. No reason not to be paid for materials and wage each week.
I think you have to accept there will always be some customers who will pay a little late and you just have to allow this.
The law has no teeth, except where you have a customer who has a good respectable job and stands to be embarrassed and possibly the money taken from their salary by the court if it has to.
Best to always cry poverty to each customer. Also insist on stage payments on bigger jobs. No reason not to be paid for materials and wage each week.
I think you have to accept there will always be some customers who will pay a little late and you just have to allow this.
M
Masood
On anything but the smallest jobs, I always get a deposit to cover all materials and most of the labour.
Clearly stated on the quote - deposit due one week ahead of start date to allow materials to be ordered. No deposit, no start.
Still get slow payers but at least my bills are covered.
Good idea
My problem is i have directed my business to emergency repairs so a bulk of my jobs are under £100, Also I'm unable to get deposits for emergency call outs.
A lot of my recent jobs are same - often under £100.
I find it is an advantage being small amounts because you have usually small outlay (if any) in materials and really that is the money you are out of pocket.
M
Masood
Get a card machine mate. Seriously, I used to do so much emergency callout work when I first went SE. Card machine meant I got paid before I left. No excuses about no cash, no messing about with cheques, and people are really impressed at how professional it looks.
J
JCSPLUMBING
I just got a payleven card machine and also I don't leave until I'm paid. It can get pretty awkward hanging about but if you stand your ground and tell them you require payment they usually fetch it from somewhere. I've even waited in the van while they head to the bank/cash machine. It's not nice but it's the only way sometimes.
D
dave1
If people choose to pay by card do you add the % fee for using it to the bill or just lose it yourself?
Ha
Your right, stood there waiting for them to find the cash is so awkward, maybe i give in too easily.
I think things need to change in the New year
R
Ray Stafford
If you have a reasonable amount of work, can I suggest asking for a 10% (or even 15%) booking fee on the acceptance of a quote, then 40% (or materials value) when materials are on site, leaving just the balance for completion?
Obviously it means that you already have half the money, but more importantly it helps identify those customers who are likely to be poor payers (or cancel at the last minute).
If someone is not happy paying 10% up front, look them straight in the eye and ask why you should trust them for 100% if they won't trust you for 10%.
Obviously it means that you already have half the money, but more importantly it helps identify those customers who are likely to be poor payers (or cancel at the last minute).
If someone is not happy paying 10% up front, look them straight in the eye and ask why you should trust them for 100% if they won't trust you for 10%.
R
Ray Stafford
Another possibility is to give them the invoice on the second to last day of the job, reminding them that full payment will be due tomorrow. It might also be worth investing in those service interval programmers, and set it for +7 days before it shuts the heating off. When paid, plug an ordinary unit into the backplate.
M
Masood
I had a Streamline / Cardsave one until recently. £25/month plus a small percentage. I've just got rid of that and gone for a Worldpay Zinc one. No monthly fee but 2.75% on all transactions. I pass on part of the transaction fee and swallow part of it as the price of convenience.
R
Ray Stafford
Which is what all businesses do.
Chasing overdue invoices isn't free. If you have to do it yourself, then you should consider that it costs whatever your hourly rate is.
On a job worth £2000, 2.75% is £55. If it saves you one hour of time chasing payment, you are probably breaking even. If it saves you 2 hrs, you should be ahead of the game. If it saves you going to court, or (worse still) taking a bad debt, then you could pay for a whole years worth of charges in one transaction.
L
lame plumber
Ray's new top seller for 2016, brilliant lateral thinking. Me I get all materials plus 20% paid before they are delivered or when delivered, then you are just looking at labour. If they quibble you can always walk away, I have twice now and been proved right on one of them as the lad who followed me in, never got paid!!
N
newcastle phill
Also have the worldpay zinc
24hr helpline based in gateshead. England.
Works fine. Good battery life and can also take 'cardholder not present ' payments via a web portal to your account.
24hr helpline based in gateshead. England.
Works fine. Good battery life and can also take 'cardholder not present ' payments via a web portal to your account.
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