Options for customer payments during slow winter months. - Certified SoftWash Roof Cleaning

Mark Fermoyle · Lead Tech Certified

Options for customer payments during slow winter months.

Tim Teed · SoftWash Systems 5-Star Professional

Have you tried taking credit cards over the phone? You can even process the credit card on your smart phone and email them the receipt. It they trust you to be at the house when they are not there, then they can trust you to give card over the phone. I've never had a problem

Chris Madden · Lead Tech Certified

Mark,

In past business endeavours were I had a large cost in supplies, I would be sure to write in the contract that work would not start till 1/3 of the total cost of the job was paid. This would cover my matl. costs. For just house washing and roof cleaning I do not collect money up front.

What you could do is have them pay 1/3rd or 1/2 of the total up front if you really needed the working capital before work begins. You may turn some clients off by doing this?? I would set some capital $$ aside when you can, just to float you through the "expensive" jobs.

Chris

Mark Fermoyle · Lead Tech Certified

Thanks y'all, that's on par with what I was thinking/expecting, thanks for confirming. Mostly my concern is that it would be a turn-off for some customers, but I do like the policy of the $1000 threshold. I feel that is wise and seems more than fair to me.

Up until last year we were heavily into doing deck stripping and resealing which took atleast two days and had the expense of stripping & neutralizing chems, and the cost of the sealer, not to mention TWO round trips to the job site.

"IF" we were still doing decks, (which we aren't) I would definitely be considering the 1/4 to 1/3 down prior to start of project. However, there is not the tremendous up front expense with our line of work,(roof cleaning) in my opinion, to justify it. I feel the customer is paying more for our knowledge and expertise rather than for product.

We are considering the credit card swipe attachment for the smart phone as well.

Thanks again for all y'alls input!!

-- Edited by Let Us Spray on Monday 5th of March 2012 08:06:38 AM

Ryan Freidline · SoftWash Systems Certified Applicator

Our policy is: Anything over $1000 requires a deposit. Usually 50%. That being said, I have a meeting tomorrow with a lawyer to discuss mechanic's liens, and business protection/collection. Thank God we've never had more than a couple thousand outstanding, but it seems to always come in the fall and winter months (when we need it the most). Currently the company is owed $750.00 from (2) jobs.

Doug Rucker · UAMCC Officer

You can a) Get a deposit, b) get paid by Credit Card (Square is what I use) over the phone, paypal, etc, c) go back and meet them once the job is complete to collect, d) plan the job to finish when they arrive home e) pay in advance...

gutterdog · Sophmore Member

any job other than a gutter clean I ask for 1/3 up front, it qualifies them, to me, as a paying customer. If they cant give up 1/3 then no biz.

AC Lockyer · Administrator

We never took deposits over twenty years of biz. We did have a $400.00 min charge and everything over $500.00 required a credit card on file and or a signature on the invoice before the job was dispatched. In 20 years and THOUSANDS of customers we only got stiffed twice.

AC

Josh Scavetta · SoftWash Systems Certified Applicator

If you do good work they have no reason not to pay you. On the bottom of my contracts i have a disclaimer which states " past due payments over 30 days are subjected to a 18% additional fee. Most of them don't even know the 18% can only be charged over a years time. Also when the slow months are coming keep extra cash in the bank as a buffer so you don't have to pester customers for payments. good luck

Mdirrigation · Freshmen Member

I dont get deposits on residential roof cleaning , just a signature . I also have a minimum a bit higher than AC does . I hold a home improvement licence in Md , when I tell the customer a deposit isnt necessary , just pay me when the job is done has worked extreemly well . As far as working capital , you should have 6 months of reserves off to the side as a buffer and preferebly additional 6 months capital to cover the slow times .

We do get deposits on our construction projects to schedule the work and to cover materials , at 1/3 down , 1/3 when we start the job . balance upon completion

Mark Fermoyle · Lead Tech Certified

Thanks guys, you've been a wealth of knowledge, as usual.

~Mark

Michael Derose · SoftWash Systems Certified Applicator

We only get a deposit when we are going to be at the job for more than one day. IE - Doing a full house package-roof,house concrete,seal concrete,clean deck,seal deck. We take 50% after day one and final payment when the job is finished and the customer is 100% happy. Having a business credit card helps to with buying supplies. I do a 30 net pay with my suppliers.