Selling peace of mind

[Tucker943]

I believe I have a 30k job locked up. I'm taking a deposit on that. Way too big for a little company like me to walk through without some capital and I'd rather not use a live of credit at the bank. I'd rather a portion after I've completed a price itemized list of the work to take me to that pre determined number. So it isn't a deposit before we start, but its a deposit to cover me while we finish.

 

[squisher]

I consider that a draw, or advance. I'll do that on a big job, but I don't take a deposit.

 

[Tucker943]

Ya, a draw is a better word.

 

[Burnham]

Progress payment, I'd call it...common on many contract jobs I administered. Normal in business.

 

[CurSedVoyce]

I believe I have a 30k job locked up. I'm taking a deposit on that. Way too big for a little company like me to walk through without some capital and I'd rather not use a live of credit at the bank. I'd rather a portion after I've completed a price itemized list of the work to take me to that pre determined number. So it isn't a deposit before we start, but its a deposit to cover me while we finish.

 

[Burnham]

Right, and I meant to note that as well...good going, lil' bro.

 

[SouthSoundTree-]

Way to go, Chris!

Generally, that's what I'll do, too, progress payments. Sometimes, cash is short, and the injections along the way are nice. Frequently at the suggestion of the customer. Sometimes a job may drag for a period due to weather or holidays or permitting.

If I am going to be sure of a crane bill, payable before the crane leaves, its nice to have the customer pay for that. Sometimes, its a matter of holding the check until the day before crane day, so the money is there when the crane company needs it.

 

[procut]

thanks for the thoughts. I think you all are probably right. On the other hand it would be really easy to try with nothing to lose. I might try pitching it to some customers and see what happens. Kind of like everybody that buys a home security system just had their house robbed.

Erik
Pro Cut Tree Service
www.pro-cuttreeservice.com

 

[SouthSoundTree-]

Agreed, no need for deposits, it's not like builders, you don't need to buy anything upfront.

So, I was thinking about this. I have to schedule my crew around a specific day for some jobs, like the homeowner wanting to clean it all up over the weekend, so I need to set a specific day (which I hate to to, but must for line drops and crane jobs/ hauling jobs). This takes time and costs money. If I go to all this trouble to give them a specific Friday in January, then they price shop it, or get an oral surgery surprise (I had a recent cancellation one or two days before the scheduled work day supposedly claimed the tree budget, it costs me money. Should I charge good customers for a flake by building this into the cost of doing business? Should I just eat it?

In the case of the supposed oral surgery, I just said, okay, fine, no problem.