My smile today

[ptonsparky]

We have a rather difficult customer that is headquartered out of State. They have a hard time keeping area vendors and today I find out the local garbage service has even quit them. :rotflmao:I feel so bad. :happysad:

 

[augie47]

opportunity knocks ! got a spare pickup truck around then shop ??

 

[hbiss]

You are going to feel even worse when they stiff you like they did the rest.

The writing is on the wall. Quit while you are ahead!

-Hal

 

[ptonsparky]

You are going to feel even worse when they stiff you like they did the rest.

The writing is on the wall. Quit while you are ahead!

-Hal

They pay, just a major PIA to work with. I’ve already quit their larger projects. Won’t even consider them. Short service calls only, for the most part.

 

[Cow]

They pay, just a major PIA to work with. I’ve already quit their larger projects. Won’t even consider them. Short service calls only, for the most part.

We have a pretty big customer that is similar. Not enough money to go around for the last year or two, several contractors and suppliers have quit working with them. They continue to call us and it's nice to be able to tell them, "we'll get to you when we can, but you still have a couple open invoices that haven't been paid yet." We honestly don't need the business and they know no other electrical contractor wants to deal with them, so it's nice having the ball in our court for a change.

There has been a noticeable change in the customers behavior also, they are a lot more humble now. That certainly beats arrogant and demanding....

 

[sameguy]

Typical, they use your money free of interest before bankruptcy. I have worked for two companies that did this, yet the owner had plenty of money. They even shorted the employees benefits (union) and by the time you got the money out of them you lost the interest.
Put hem on C.O.D. Now!

 

[kwired]

Typical, they use your money free of interest before bankruptcy. I have worked for two companies that did this, yet the owner had plenty of money. They even shorted the employees benefits (union) and by the time you got the money out of them you lost the interest.
Put hem on C.O.D. Now!

Out of state owner - probably not getting paid on site even if local manager wanted to pay you, it has to come from corporate. You either put up with it or you don't work for them.

 

[sameguy]

Out of state owner - probably not getting paid on site even if local manager wanted to pay you, it has to come from corporate. You either put up with it or you don't work for them.

2018, I can send money instantly; a "big corporation " yes bloated paper trail, then raise your price to cover the 120 days out and hope you don't get taken or find more paying customers.

 

[kwired]

2018, I can send money instantly; a "big corporation " yes bloated paper trail, then raise your price to cover the 120 days out and hope you don't get taken or find more paying customers.

first time billing with big corporation, they wait 30 days, then send you a W-9 to fill out and wait another 30 days before even thinking about paying you.

 

[ptonsparky]

They pay and are not impoverished but nit pick every nickel. Today we were trying to make a PLC solution to a hardwired interlock for controls that date back at least thirty years when the real solution is to have proper repairs made to an in-operational leg so they can move materials as the system was designed. What do I get but a phone call from the CEO wanting to discuss the merits of guys holding a PB in so they could get products loaded. It had been 5 weeks before they were authorized to call us.

 

[sameguy]

Haha, I dealt with the vp of a large bank trying to explain how to set up annual po with release dates, he finally caught on when I asked him "how do you think that roll of toilet paper got into your private bathroom, janitor purchased one roll or an annual quantity for a discounted price with quantity release on a monthly basis?". Then it was just a matter of fixing the dollar value to fit his budget; bean counters.

 

[hbiss]

I just refuse to play games with those idiots. My time is just as valuable as theirs.

-Hal

 

[ActionDave]

I just refuse to play games with those idiots. My time is just as valuable as theirs.

-Hal

Dale Carnegie would approve.

 

[ptonsparky]

I just refuse to play games with those idiots. My time is just as valuable as theirs.

-Hal

In getting more and more that way. I told him I was busy and let him talk in the background. I don’t know at what point he gave up.

 

[zbang]

first time billing with big corporation, they wait 30 days, then send you a W-9 to fill out and wait another 30 days before even thinking about paying you.

I usually send the W-9 when I start work, sometimes along with the signed contract/letter/order, and depending on the client, might send one for each new job.

"We need a W-9 before you can pay you."
"You already have it, I sent it earlier."
"Well, we can't find it, send another."
"Have my signed acceptance letter?"
"Sure, right here."
"It's stapled to the back."
"Oh."

 

[kwired]

I usually send the W-9 when I start work, sometimes along with the signed contract/letter/order, and depending on the client, might send one for each new job.

"We need a W-9 before you can pay you."
"You already have it, I sent it earlier."
"Well, we can't find it, send another."
"Have my signed acceptance letter?"
"Sure, right here."
"It's stapled to the back."
"Oh."

Good idea to send w-9 first time invoicing a company like that, but if it goes down like your little scenario there, they are still likely waiting another ~30 days before they cut you a check. Even if they owed you $10,000 it could look like pocket change to those that process it compared to what they are used to seeing and they won't put a priority on it. But if you owed only $200 to same company and were more then 30 days past invoice date they are very prompt at reminding you.

 

[AKElectrician]

Good idea to send w-9 first time invoicing a company like that, but if it goes down like your little scenario there, they are still likely waiting another ~30 days before they cut you a check. Even if they owed you $10,000 it could look like pocket change to those that process it compared to what they are used to seeing and they won't put a priority on it. But if you owed only $200 to same company and were more then 30 days past invoice date they are very prompt at reminding you.

Has anyone put in there contract letter anything to the tune of "over 30 days is X% of the total owned" or the like?
I am assuming these customers are the ones who hire third parties to get there work done for them?

 

[kwired]

Has anyone put in there contract letter anything to the tune of "over 30 days is X% of the total owned" or the like?
I am assuming these customers are the ones who hire third parties to get there work done for them?

You could, if you have a contract letter.

The W-9 thing I mentioned earlier is usually for service work or other small jobs that aren't necessarily all that high invoice amount.

A true contract situation does generally have payment agreements and even submittal of W-9 involved in early stages of that contract.

 

[petersonra]

we have several large customers that routinely late pay. sometimes we refuse to do service work for them until they pay. just depends on the situation at the time. i don't even think it is about money as often as not. the bills have to be approved by the manager of the department that is being billed for them and they shift managers around about every 3 weeks it seems. they have mini reorganizations every few months and it sometimes happens that the department that got the capital approved does not even exist in the organization anymore and of course no one else wants to pay for it. we have an approved PO so we eventually get paid but it frustrates the owners some.

 

[Jraef]

I had an OEM commercial refrigeration customer who was "loyal" to me, but only because nobody else would put up with his payment terms and delay tactics. I agreed to give him 60 day terms, then knew he would delay another 30-45 days. So I added 25% to every job I quoted to him to cover the cost of money. Every now and then I lost orders to new competitors who didn't know about him yet, then they would never do work for him again and he would come back. We got into a dance on pricing too so I'd always start 50% high and "let" him work me down 25% for being a "good" customer...

I can't imagine he didn't know what was happening, but he created the game, I just made sure it didn't cost me money (after the first couple of learning experiences). I know it sounds like a lot of trouble, but he actually gave me quite a lot of business over the years and his customers would see my name on the equipment and call me for other work, so I put up with it. But eventually, he went out of business because he did this with all of his suppliers and ran out of them. Toward the end, he wanted me to buy his stainless steel for him, that's where I drew the line.