charging customers

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kimmychad

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washington, pa
just curious, how do you guys charge your customers, before the job starts, or have them sign a contract and charge them after? im new to this and trying to learn the ropes.
 
Not to say this is "right for everybody":
I get a contract before and send a bill after the job is completed - due in 30 days (that is in the contract). If they need longer to pay, I can make individual exceptions and put that in the contract, but I wouldn't go more than 45-60 days until it is due.

On some big jobs (especially those with some significant upfront costs) it would be nice to get a down payment...but I think that most clients are more comfortable not paying up front.

Maybe the one other piece of the equation is the client... If you think it is going to be hard to get money, maybe a large deposit is in order.
 
Certainly different areas and type of clientelle may determine how you run your business. However, this is what we do.

Most people pay at completion (if they are home) or pop a check in the mail if they are not. Our invoice states payment is due at time of completion. But I will mail a statement to a client who is not home. If a job is particularly long and drawn out, we may ask for payment of services to date midway through. However, that is rare.

We are very fortunate to live in an area where collections are not or have not been a big issue, so the honor system still works here.

Sylvia
 
Certainly different areas and type of clientelle may determine how you run your business. However, this is what we do.

Most people pay at completion (if they are home) or pop a check in the mail if they are not. Our invoice states payment is due at time of completion. But I will mail a statement to a client who is not home. If a job is particularly long and drawn out, we may ask for payment of services to date midway through. However, that is rare.

We are very fortunate to live in an area where collections are not or have not been a big issue, so the honor system still works here.

Sylvia

+1 at completion unless it is a company that pays monthly etc.
I am usually not too destitute to wait in those cases but if more
than a month may have to pull off a day or two to do some smaller
jobs to cover expense. The honor system good here mostly I have
only eaten one check it was for three small stumps 35.00 it ticked
me off but life went on.
 
I just ask" can I have some money now?", whenever I feel I would like some or need it. But sometimes i just send out a bill which takes a bit longer.
 
........so the honor system still works here.

Sylvia

Curious: do you have contracts on all/most/any jobs?

It still takes a certain degree of honor for sombody to pay, but I do have contracts. If the honor system breaks down, the court system is there (not that I would look forward to that...but at least it is there). I do some jobs without contract, but try to get one for every job even when working for friends. (most of my contract actually is there to protect the client - for example: would my insurance pay if I didn't agree in writing I am liable??)

FWIW: In most states any contract less than $500 can be enforced based on a verbal agreement. Over $500 it must be written down to be enforceable (the things that must be written are covered by a "statute of frauds").
 
hey

i dont know much about this but i am a logger not a trimmer when i go in to cut someones ground off i look for small jobs we are only a 2 amn crew sometimes 3 but its diffrent they pay you to do the job we pay them and areself so i just tell them i will bring you the log check and we will split it fairest way and easiest when you dont have cash up front for the timber so thats the diffrence between pruning and tree removle and logging
 
We have contracts in three page translucents so the customer gets a copy and then one for the billing and 1 for my records. I always right up a contract it is part of my written estimate so I can keep track of my work schedule and also if there is a payment issue you have a signed contract to fall back on. We usually 90% of the time get paid at time of completion if the home owner is there if not I leave them a bill and get a check in the mail if I am in a shady area or something just does not seem right I will require a 50% deposit but that is very rare. In the last few years the only job I got stiffed on was a $80.00 while you are in the area can you get this type of job. No contract. Probably why I never got paid. Its only 80 bucks but the principle of the matter pisses me off when ever I think about it.
 
Customer knows before job starts money is due at completion of job. I just send a proposal for them to sign so everyone knows what going to happen. T
 

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