Payment Terms

800 Views 33 Replies 12 Participants Last post by Ice-sage, 8 d ago

Mark Oomkes

Discussion Starter · 14 d ago

Anyone ever had any luck negotiating terms with a customer?

One of our customers sold a building, molds, contract for work, etc to another plastic mold company. Original company has always paid within 30 days net.

New company's terms are 60 days. I call BS. They aren't waiting 60 days for paychecks.

I already know @Philbilly2 will laugh about this, and it isn't that I can't afford to float them, it's more of a principle to me.

I guess I can just tell them they will be paying more for me to be their bank...

Reactions: 3

21 - 34 of 34 Posts

Mark Oomkes

Discussion Starter · #21 · 14 d ago

cwren2472 said:
Wait, so lawn jockey's actually know how to calculate profit?

Yes...we make it in the winter and then shred it in the summer with our mowers.

Just axe @Ajlawn1

Reactions: 5

Kvston

· #22 · 13 d ago

EWSplow said:
Consider yourself lucky.
I'd have subs calling the office because they dropped off an invoice on the 10th and there wasn't a check in their mailbox on the 16th.
This was just the small subs, one in particular who was also a farmer and wasn't very successful at that either.

Yeah I have those guys who learn or move on. Typical GC stuff out here is net 40-60 which I don’t do. My clients on construction get 10 days to pay or I shut down the job. I believe in being fair.
You don’t pay the mechanic later. You don’t pay for groceries later. You don’t pay the dealership later.

Reactions: 3

Kvston

· #23 · 13 d ago

Philbilly2 said:
So if you don't get paid for 30 days... you do or don't pay your subs for 30 days?

If I don’t get paid I still pay but I ALWAYS get paid. If a client is suspect they pay up front and I pay the sun when the sun finishes their work properly.

Kvston

· #24 · 13 d ago

cwren2472 said:
Wait, so lawn jockey's actually know how to calculate profit?

Should be easy since there isn’t any.

Reactions: 3

Philbilly2

· #25 · 13 d ago

Kvston said:
Yeah I have those guys who learn or move on. Typical GC stuff out here is net 40-60 which I don’t do. My clients on construction get 10 days to pay or I shut down the job. I believe in being fair.

aren't you building houses and stuff? Are none of these people using title companies?

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Reactions: 2

EWSplow

· #26 · 13 d ago (Edited)

Philbilly2 said:
aren't you building houses and stuff? Are none of these people using title companies?

She must be on her way to buy a new car with money she found in her pants...

Yes, title agents are typically used by the lenders for draws on construction loans.

In the past, I've had to secure properties for the federal marshalls when properties weren't purchased with burrowed funds....

Reactions: 1

fireball

· #27 · 13 d ago

I don't believe in luck when it comes to negotiating my money. I do believe that you have to plan on how you are going to be paid.. when costing out your price include cost assuming a net 60 situation. It's your business and you are the one extending the credit so therefore you determine the rules.

Reactions: 4

Kvston

· #28 · 13 d ago

Philbilly2 said:
aren't you building houses and stuff? Are none of these people using title companies?

Yep we build houses and yep some people have construction loans. The rare time I take one of those I bud my fees into the project cost and I inform the subs of the potential wait time.
I also tell the client to have in escrow an amount equivalent to the largest payment in case the loan co holds things up cause I don’t wait to be paid.

It’s simple: you asked me to do the job, I didn’t ask you. I get paid or I don’t work.

Reactions: 2

Philbilly2

· #29 · 12 d ago

Kvston said:
I inform the subs of the potential wait time.

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Kvston

· #30 · 12 d ago

Philbilly2 said:

Nice hat. Always knew you looked like a schmo

Philbilly2

· #31 · 11 d ago

Kvston said:
Nice hat. Always knew you looked like a schmo

Thanks for letting me borrow it!

Reactions: 4

Kvston

· #32 · 11 d ago

Philbilly2 said:
Thanks for letting me borrow it!

That hat? Sure thing. Like I said it ain’t gonna help your looks bud. It’s not a miracle worker. I’d loan you a large paper bag. That should help.

Reactions: 1

BUFF

· #33 · 10 d ago

Kvston said:
That hat? Sure thing. Like I said it ain’t gonna help your looks bud. It’s not a miracle worker. I’d loan you a large paper bag. That should help.

Wow it must be tough being perfect in every way.... Master Builder, Master Snow Plower, Master Businessman and since you fish you must be a Master Baiter too.

Now enough of the name calling and stay close to the topic.

Reactions: 5

Ice-sage

· #34 · 8 d ago

I thought you SCO's were listening and truely trying to change the industry to pre-pay?

I am not sure what answer you are looking for but it is working for us. Going to take industry wide efforts including all ya'll to change things.

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