I was wondering if any one has a payment plan for customers that want work done but can't afford it. I was looking for an outside source for the payment plan. I don't know if this is possible or not but basically i was looking for a company that would pay me the cost of a ceiling fan installed and then bill the lady with interest ect. so once that company pays me I'm out of the loop.For example a lady wants a ceiling fan put it, but can't afford your price then you would tell her about your payment plan. She says ok and signs some forms or what ever then you do the work have her sign off that the work is completed then you bill the outside company that sets up the payment plan. Or if any one has there own payment plan or how they handle payments please share.
Payment plans for customers
- Thread starter khixxx
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ryan_618
Senior Member
- Location
- Salt Lake City, Utah
Re: Payment plans for customers
My payment plan....Pay me or I will jerk your meter!
My payment plan....Pay me or I will jerk your meter!
jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Payment plans for customers
I have enough to worry about without branching out into the banking business. If they can't afford the work, then I'm not interested in doing it. Yesterday I bid a job at $1200, and the guy said he'd pay $800. I walked.
The closest I'd come to a payment plan is if I started accepting credit cards, but this past week marked the first time anyone ever asked, so I think it wouldn't really be worth it in my case.
I have enough to worry about without branching out into the banking business. If they can't afford the work, then I'm not interested in doing it. Yesterday I bid a job at $1200, and the guy said he'd pay $800. I walked.
The closest I'd come to a payment plan is if I started accepting credit cards, but this past week marked the first time anyone ever asked, so I think it wouldn't really be worth it in my case.
jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Payment plans for customers
I like it, but measure each leg with clamp ammeter first. Alternately, you could throw caution to the wind and leave the ammeter in the truck, but I'd suggest a face shield and ear plugs.Originally posted by ryan_618:
My payment plan....Pay me or I will jerk your meter!
mdshunk
Senior Member
- Location
- Right here.
Re: Payment plans for customers
There's just too much work out there to fool around with the payment plan idea. I struggled with the prospect myself, since I am generally the helpful sort. I grew up poor and I like to help people whenever possible. I found as I aged that it's more satisfing to choose my charity rather than having it choose me. Every once in a while I'll do a hard luck job 100% for free. Other than that, I want a check when I'm done.
There's just too much work out there to fool around with the payment plan idea. I struggled with the prospect myself, since I am generally the helpful sort. I grew up poor and I like to help people whenever possible. I found as I aged that it's more satisfing to choose my charity rather than having it choose me. Every once in a while I'll do a hard luck job 100% for free. Other than that, I want a check when I'm done.
goldstar
Senior Member
- Location
- New Jersey
- Occupation
- Electrical Contractor
Re: Payment plans for customers
You can try accepting Visa or Mastercard. They usually get around 2% of every sale, so just set your prices so that you will end up getting the amount of $$ that you want for the work you do. I have a plumber friend of mine that does this because he often has to go out on an emergency basis and install a hot water heater or repair a leak. It's always better to get your money as soon as the job is done rather than wait 30-60 days.
However, I would only use this payment method for a situation such as you described and I wouldn't plaster signs on the sides of my truck that say I accept major credit cards. The down side to this is that someone may have you do a job for $10 K or so and use their credit card to pay you in order to beef up their frequent flyer miles. They win, you're out several hundred. Just my opinion.
You can try accepting Visa or Mastercard. They usually get around 2% of every sale, so just set your prices so that you will end up getting the amount of $$ that you want for the work you do. I have a plumber friend of mine that does this because he often has to go out on an emergency basis and install a hot water heater or repair a leak. It's always better to get your money as soon as the job is done rather than wait 30-60 days.
However, I would only use this payment method for a situation such as you described and I wouldn't plaster signs on the sides of my truck that say I accept major credit cards. The down side to this is that someone may have you do a job for $10 K or so and use their credit card to pay you in order to beef up their frequent flyer miles. They win, you're out several hundred. Just my opinion.
jimwalker
Senior Member
- Location
- TAMPA FLORIDA
Re: Payment plans for customers
Simple,tell them you worked out a deal with the banks.They agreed not to wire houses and you agreed not to lend money.Bottom line is if they are credit worthy they can get cash advance on there credit card and if they can't it's because the banks don't trust them,so why should you.
Simple,tell them you worked out a deal with the banks.They agreed not to wire houses and you agreed not to lend money.Bottom line is if they are credit worthy they can get cash advance on there credit card and if they can't it's because the banks don't trust them,so why should you.
growler
Senior Member
- Location
- Atlanta,GA
Re: Payment plans for customers
I thought I was the only person in the country not accepting credit cards. Once a year I get a call asking if I accept cards. Most of my customers don't seem to mind writing checks and I have to bill the commercial accounts.
Do any of you see a significant demand for credit cards or for financing after you advertise and plaster it all over the van.
I have been told that it can increase business 20% to 30%, by the credit card companies.
I hate to commit to anything that stays with you forever.
I advertised " free estimates " in 97 or 98 and I still get calls wanting a free estimate. I haven't used things like "free" "fast" or " 24 hour service " since then. I don't do nights unless it's a real emergency and regular customers will call anyway. No more having people call at three in the morning for a price quote.
I hear that one of the companies is coming out with some reasonably priced equipment for checking and processing cards.
I thought I was the only person in the country not accepting credit cards. Once a year I get a call asking if I accept cards. Most of my customers don't seem to mind writing checks and I have to bill the commercial accounts.
Do any of you see a significant demand for credit cards or for financing after you advertise and plaster it all over the van.
I have been told that it can increase business 20% to 30%, by the credit card companies.
I hate to commit to anything that stays with you forever.
I advertised " free estimates " in 97 or 98 and I still get calls wanting a free estimate. I haven't used things like "free" "fast" or " 24 hour service " since then. I don't do nights unless it's a real emergency and regular customers will call anyway. No more having people call at three in the morning for a price quote.
I hear that one of the companies is coming out with some reasonably priced equipment for checking and processing cards.
- Location
- Massachusetts
Re: Payment plans for customers
Check out this accessory for Nextel phones.
It processes credit card transactions for what looks like $0.06 per transaction and $15.00 per month.
I imagine the credit card company still keeps 2%.
Wireless Credit Card Transactions
Check out this accessory for Nextel phones.
It processes credit card transactions for what looks like $0.06 per transaction and $15.00 per month.
I imagine the credit card company still keeps 2%.
Wireless Credit Card Transactions
Re: Payment plans for customers
Thanks for all your input. By NO means am i going to lend out my money for free or lend it out to a customer period.... I wasn't looking for a credit card system either. I don't even know if what I'm looking for exists. I was looking for a company that will take the risk for me by lending the customer money and paying me now. I know of a check retrieval program that is free. How it works is that a customer gives you a check and it bounces then it gets forward to the check retrieval company and they give you the money and some how and i don't care how they get the money off the customer. I guess they charge the customer 25 dollars or what ever for the check bounce. So i was just wondering if there was a company that sets up loans for the customer easy and fast and RISK free for me.I'm trying to avoid the cost of the credit cards, they make enough money from me.I don't even do free estimates for customers do to the school of hard knocks. All comments are welcomed.Thanks
Thanks for all your input. By NO means am i going to lend out my money for free or lend it out to a customer period.... I wasn't looking for a credit card system either. I don't even know if what I'm looking for exists. I was looking for a company that will take the risk for me by lending the customer money and paying me now. I know of a check retrieval program that is free. How it works is that a customer gives you a check and it bounces then it gets forward to the check retrieval company and they give you the money and some how and i don't care how they get the money off the customer. I guess they charge the customer 25 dollars or what ever for the check bounce. So i was just wondering if there was a company that sets up loans for the customer easy and fast and RISK free for me.I'm trying to avoid the cost of the credit cards, they make enough money from me.I don't even do free estimates for customers do to the school of hard knocks. All comments are welcomed.Thanks
mdshunk
Senior Member
- Location
- Right here.
Re: Payment plans for customers
I'm racking my brain on this one. What's the worst catastrophe that a customer would need replaced on a spur of the moment? Main braker? Whole service? Worst case, maybe 1500 bucks might get some repairs that would make the dwelling safe so that they could limp along. If a person doesn't have 1500 bucks or access to said money (relative, cash advance, line of credit, etc.) chances are they're generally a poor credit risk anyhow. I'm not sure why any EC or other funding source would want to put themselves in this place.
I'm racking my brain on this one. What's the worst catastrophe that a customer would need replaced on a spur of the moment? Main braker? Whole service? Worst case, maybe 1500 bucks might get some repairs that would make the dwelling safe so that they could limp along. If a person doesn't have 1500 bucks or access to said money (relative, cash advance, line of credit, etc.) chances are they're generally a poor credit risk anyhow. I'm not sure why any EC or other funding source would want to put themselves in this place.
Re: Payment plans for customers
lol don't rack to hard. I'm just looking for ways to find more business. Something that sets me apart from my competition. Like you said people that would use the loan process might not have good credit but any one can get a loan.Might also be hard to deal with customers like this.
lol don't rack to hard. I'm just looking for ways to find more business. Something that sets me apart from my competition. Like you said people that would use the loan process might not have good credit but any one can get a loan.Might also be hard to deal with customers like this.
mdshunk
Senior Member
- Location
- Right here.
Re: Payment plans for customers
If you truly want to set yourself apart do these things. Show up when you say you're going to show up. Do what you say you're going to do. Provide that service in the time alloted, and get it right the first time. That will set you apart from 90% of the others.
Are you truly short on work? What area are you in? I turn away or schedule way out in the future more work in a week than I actually do, and I've only been on my own for 5 or 6 years. Puzzled....
[ June 12, 2005, 03:21 PM: Message edited by: mdshunk ]
I'm not so sure that this is the best way to expand your business. I prefer to target a demographic that has the ability to pay.
If you truly want to set yourself apart do these things. Show up when you say you're going to show up. Do what you say you're going to do. Provide that service in the time alloted, and get it right the first time. That will set you apart from 90% of the others.
Are you truly short on work? What area are you in? I turn away or schedule way out in the future more work in a week than I actually do, and I've only been on my own for 5 or 6 years. Puzzled....
[ June 12, 2005, 03:21 PM: Message edited by: mdshunk ]
jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Payment plans for customers
I once went on a free estimate that turned out to be a service call, but I was able to find and fix the problem in five minutes (loose wire). When the guy asked how much he owed me, I said not to worry about it since I didn't do any real work. A couple months later, the guy called me back for another estimate, this time for a full-gut kitchen remodel and service upgrade. He told me I "impressed the hell out of him" the last time we met, and when I gave him my bid for the job, he hired me on the spot. Maybe I lost out on a little money ($100) for the initial service call, but now I've got a $6000 job as a result.
A good chunk of my business is from referrals, and I'd like to think it's because I treat people the way I'd like to be treated.
I'd have to agree, and add my $0.02: Throw in some minor freebies. Nothing huge, just a little something extra that will surprise the client and make him happy. I'm in the middle of a remodel job now, and when I itemized the tasks on the bid, I didn't put a price on one of the minor ones (re-wire/reconnect an obviously illegal circuit I had to demo) and just threw it in "free" with the rest of them.
I once went on a free estimate that turned out to be a service call, but I was able to find and fix the problem in five minutes (loose wire). When the guy asked how much he owed me, I said not to worry about it since I didn't do any real work. A couple months later, the guy called me back for another estimate, this time for a full-gut kitchen remodel and service upgrade. He told me I "impressed the hell out of him" the last time we met, and when I gave him my bid for the job, he hired me on the spot. Maybe I lost out on a little money ($100) for the initial service call, but now I've got a $6000 job as a result.
A good chunk of my business is from referrals, and I'd like to think it's because I treat people the way I'd like to be treated.
Re: Payment plans for customers
there is not a real shortage on work here i just sent out about 1,000 post cards to people that just bought homes in the past 6 months that were over $200,000 and in a 18 mile radias of my home. Most of the replies that i get are they can't afford that right now after i tell them my rates. (I think most were just feeling around for what it would cost for a dimmer, fan ect. about 50% call back for my service)One lady just had a baby and wanted a ceiling fan instailed but just couldn't afford to get the work done I even told her to call around For other pricing and just make sure the electrician is licensed and insured. I felt bad for her. I just did a service call for free that was a 10 min drive and found that the guy had a tripped gfci rec. that feed a small pump for a pound for landscaping and he just decided to unplug the pump he was like 60 or so and i spent more time b.s.ing about the area (he just moved here) than i did for the troubleshooting and told him to give a call if the problem happens again. Thanks for the replies.
there is not a real shortage on work here i just sent out about 1,000 post cards to people that just bought homes in the past 6 months that were over $200,000 and in a 18 mile radias of my home. Most of the replies that i get are they can't afford that right now after i tell them my rates. (I think most were just feeling around for what it would cost for a dimmer, fan ect. about 50% call back for my service)One lady just had a baby and wanted a ceiling fan instailed but just couldn't afford to get the work done I even told her to call around For other pricing and just make sure the electrician is licensed and insured. I felt bad for her. I just did a service call for free that was a 10 min drive and found that the guy had a tripped gfci rec. that feed a small pump for a pound for landscaping and he just decided to unplug the pump he was like 60 or so and i spent more time b.s.ing about the area (he just moved here) than i did for the troubleshooting and told him to give a call if the problem happens again. Thanks for the replies.
Re: Payment plans for customers
We always ask the customer how they intend to pay for the service we provide and it is due when the service call is complete. We also use the Nextel card reader. It works great as long as you have a good signal. 5% of the time we have to go outside and get a better signal.
Basically we are COD for our day to day customers and bill our customers who the commerical accounts.
The bill is due when it is received in the mail.
We are not a bank. period.
We always ask the customer how they intend to pay for the service we provide and it is due when the service call is complete. We also use the Nextel card reader. It works great as long as you have a good signal. 5% of the time we have to go outside and get a better signal.
Basically we are COD for our day to day customers and bill our customers who the commerical accounts.
The bill is due when it is received in the mail.
We are not a bank. period.
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