Hello everyone. In response to the topic here posted. I'm a Contractor, and through the years I've learned that not all customers will pay in a timely manner. There will be customers that even a $ 40.00 invoice will seam beyond belief and will try not to pay you for it. Your best bet is to know your competitors. Beat their price without doing the work too cheap for yourself. Try to give yourself some parameters. Or let's say you have a small job, such as a "ceiling fan". And been that is a Residential customer. You will encounter things that will increase your cost, like a nail on box, a rusty box, a short wire inside the box, or a malfunctioning light switch. Keep these items in mind and see how long it will take you on a normal basis to change the light to a fan. Also, keep in mind how long it could take you to repair these other problems. Chances are that a customer (residential) will call the electrician, when their friend ( the unlicensed one) has turn them down, due to the difficulty of the job. So when you do estimates (small jobs) follow these simple rules: 1) let the customer know how long it usually takes. 2) What parts may be needed. 3) how much it could cost them. So if you sell your parts at cost. This is the best way for you not to let the customer go to the store and buy their own parts, because chances are they will buy the wrong ones. So if you have changed ceiling fans in the past, you know that in "regular basis" it could take 30 minutes or up to 2 hours. So depending on the type of dwelling, you get an idea of how long it will take you to do the work. With this in mind, how much are you going to charge the customer for something they can do themselves… not much. If the customer asks you how much it will cost them. You can give them a more accurate bill. If you charge $ 50.00 an hour. You know the customer will pay $ 25.00 to $ 100.00 plus parts. Then have a cellphone with Electrical Stores numbers and give them a quick call to find the current price of the items you will need. THIS WORKS FOR ME! Remember your first estimate is your most important one. This will make the customer give you the work or call the next guy, if you let the customer know about any possible discounts with a minimum bill, then you can do more things in the same house and give yourself more work and money. In other words. Let's say you will do the ceiling fan, but then you offer the customer a discount if their bill exceeds $ 100.00-- 9 out of 10 will take you around the house or shop and give you more work. Also this is a good idea, especially if you had to travel 15 minutes and up to the customer. This keeps your cost down and profit up. Now that you know how to manage your cost, is time to learn how to get your money. First time customers like "catalogs with pictures, vehicles with company logos, warranties" These give the customer the sense that this is a legitimate company and that they will not be ripped off. Customers dislike "signing contracts, down payments, or salesman" So, if you only stick to what the customer wants, it will get you their trust. Unfortunately, just like I'd mention at the beginning of this… there are some that will try not to pay you. If your estimate is small, being under 100 dollars. I recommend you use verbal agreements. If it is between small and medium, being 100 to 1000, then you may use "typical service/repair orders" These you will find at your local Office Stores. And if you get anything over $1000.00 Then you may use with the advice of your Attorney a Custom made form. That, for example will give the customer 90 days to pay same as cash. This will keep the competition far away. Finally; clean up, and put everything away, then re-check the finished work with the presence of your customer, offer an apology if anything is found to be wrong and offer to fix it at no cost to them. Be sure the customer is completely satisfied… stand behind your work with a warranty (six month) and always, always, always give your customer a receipt. Good luck! And email me any comments =o)
