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Welshsparky

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Doing a rather large rewire at the moment that is costing me a fortune in materials/ Labour/fuel etc , cant help but think i should ask for some payment upfront before starting a job, How many people on here do this?
 
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i=p/u

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Arms
i always ask for materials upfront.lol
 
M

MKS

  • Thread Starter Thread Starter
  • #4
Usually ask for interim payment after 1st fix
 

cbw

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I do 1 third on 'order' 1 third after 1st fix and final third on completion.

In the current climate even the large blue chip companies are going under, I cannot afford to take a hit.

The other thing was I rewired an old bids bungalow and she died. (Not of electric shock before anyone (DS) starts)

Thankfully I had received 2 thirds of my money and walked away with literally a couple of quid profit.
 

i=p/u

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Arms
thaats it like, i cant afford a hit yet as im new kid on the block...
 

Rockingit

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Mentor
Arms
Esteemed
Yep, anything over a grand and I require 30% deposit up front (which generally speaking will cover materials).
 

DaveyD

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Arms
Any job over £500.

Materials before start.
60% Labour on 1st fix
40% Labour on 2nd Fix

Regards, Dave
 
K

Knobhead

  • Thread Starter Thread Starter
  • #11
When running my photographic business I took a deposit to cover materials, processing and a small proffit. I’ve never done domestic electrical, always been on a salary in the industrial field.
I will say I never had a problem with any customer.
 
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1shortcircuit

  • Thread Starter Thread Starter
  • #12
I always ask for a 30% deposit and have not yet had anyone query it although I always mention in conversation WHY I do this. It's purely to cover the cost of materials and ensures that I do not have to use my own money as I have a family.

In all honesty anyone that questions it isn't worth working for because if they're questioning thirty percent then what are they going to be like when it comes to collecting the remaining seventy percent?

:thumbsup
 
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nickblake

  • Thread Starter Thread Starter
  • #14
What you should do is state in your contract that a stage payment of 50% is required after first fix ,then the balance on completetion , could be 6 weeks after the first fix before you do 2nd fix , and i have had situations where i have done 4 first fixes on after another and when your a small buisness thats your cash flow gone so does make it hard at the end of the day you have to pay your suppliers and they wont wait
 

soulman

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Arms
I would never ask for any advance payments, i think it's unproffesional & i tend not to trust trades who ask for payments in advance to buy materials. If you have done first fix and agree with the client in advance, then i see no problem with that. I personally dont ask for any payment until the job is complete. Most of the time the client is trying to pay me before the job is complete. One piece of advice i was given from a friend 18 years ago, when i started in business was, you must put aside some money and always keep it seperate for stock & eventualities. This has always served me well and i have transfered this over to my electrical business. It means you dont have to go to one supplier who you have an account with, you can go where you like for the best prices. If your tester is lost or stolen or your van breaks down, the money is there, as you cannot work without your tools. The money must then be replenished. Suppliers aren't stupid they love to give you credit, therefore retaining you as you always owe them money. When business is good, i like to buy a bit extra stock like cable or ccu especially when suppliers have them on offer, materials that you use on a regular basis and if you do have a quiet few weeks, you have a bit stock if a job comes in and your not driving to the wholesalers for bit & bobs.
Cheers
 

topquark

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Mentor
Arms
Better to agree a payment schedule in your contract with them (once first fix complete for example). That way you can get early warning of non payment potential or cover your supplier costs.
 
S

sedgy34

  • Thread Starter Thread Starter
  • #17
i normally do 1st fix and then put invoice in for 50% then 50% on final 2nd fix
 
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claret73

  • Thread Starter Thread Starter
  • #18
As & when I begin to do some jobs for myself, I'll be getting a contract of agreement to the outlayed terms of both parties. I don't know who mentioned it now, may have been my accountant. But if you don't get paid the materials still effectively belong to you. Does sound overboard & heavy handed mind if you threaten to start disconnecting due to non payment...I'd rather take all steps to not get to that point. Seen that happen with Building companies as the main contact to the customer & the Electrician as the Sub. My Mate is a Chippie/Oak Floorer & he asks for materials up front. Seems to work for him, so can see it being reasonable on rewires or extension jobs with a large outlay...
 
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nickblake

  • Thread Starter Thread Starter
  • #19
I never ask for payment in advance , you have to build up a trust for a customer , i have worked in the industry for to long now and have seen all trades be ripped off by the customer its not always the trades man ripping off the customer its the other way round and in the past i have been ripped off for over 10 k for a hotel i rewired never got a penny even after going to court which was a waste of time and money the guy declared him self bankrupt , so the vat man and the tax man got there be me nothing so since then i work honestly first fix then payment 2nd fix then payment , its the only way to trade as it only takes a few customers not to pay and you have gone bust , i did work for a company who had 2.5 million of work on the books three companies didnt pay the went bust making 60 guys redundent need i say more
 

kingeri

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Arms
Lately I've had to ask for weekly payment on bigger jobs, just don't have the cashflow any more. Mind you, I don't spark full time, I do have another 'job'.
 
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