Contract work

[rocketmanbkk]

So I do quite a bit of work where payment might take 30 days.

I spend money on materials, eg £145 shower today.

How do you deal with this? Just wait or ask for materials costs if over a certain amount.

This month on my visa, as that how I buy everything, so far is just over £1200.

Cheers

 

[Ray Stafford]

Most people use the Royal Bank of Plumbers Merchants.

 

[rocketmanbkk]

What you Ray??!!!

Why don't you stock Bristan showers!!! I needed one today,

I might apply for an account. What if I get rejected? I'll have to cut links with UKPF out of embarrassment!

 

[Ray Stafford]

Why don't you stock Bristan showers!!! I needed one today,

Can't get a competitive price Rocket. No point in us supporting a manufacturer and promoting it to our trade customers when any householder can go online and buy it for more or less the same price we can.

We try to support manufacturers who support trade pricing differentials, so you lot can make a margin without constantly being told "I can get that online for fourpence"

 

[kris]

Before u start the job rocket ask for cost of materials up front so it's only your wages you need to wait for, and all your materials are paid for, a lot of my customers use online banking so it's handy for a quick transfer ,save waiting for cheques etc

 

[mfgs]

It is one of those things unfortunately, people don't like paying any money upfront so we have to stomach the material cost and hope we get paid. Or as Ray says set up an account with your merchant and then you don't have to pay it right away. As a one man band if you do boiler swaps or bathrooms regularly and you don't have any credit accounts you will probably need a working capital of about 8-10k in your account to allow materials on a few jobs before any payment is received.

 

[Nostrum]

Part and parcel of running a business unfortunately. £145 in the scheme of things is not a lot, but cash flow is very important to prevent these kind of arrangements causing to many problems.

 

[Millsy 82]

For private jobs I get materials up front but not on smaller jobs, no pay no go simple as that. I did a bit of work for a letting agency which was a pain as I don't have, don't want and probably wouldn't get a trade account so I had to stump up the cash to cover it, I had many sleepless nights because of it but they were good payers so I wasn't overly worried it was more finding the money for my other jobs, when it started coming back in it was brilliant.

 

[hammers4spanner]

oh the delights of contract work !!!

dont do it anymore thank god however wait till your 30 days payment is up and you don't get paid , you make the phone call only to find that the employee who deals with pay is on holiday . Oh but thats ok she will be back monday and will process it for your next 30 day payments .

get an understanding merchant imho

 

[Millsy 82]

oh the delights of contract work !!!

dont do it anymore thank god however wait till your 30 days payment is up and you don't get paid , you make the phone call only to find that the employee who deals with pay is on holiday . Oh but thats ok she will be back monday and will process it for your next 30 day payments .

get an understanding merchant imho

Or hit them with late payment charges as your allowed to they soon pay up then.