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Old 12-01-2009, 02:51 PM   #41
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Are we talking a deposit to commit the customer or monies down at the beginning of a job? I dont take "commit deposits". I do take either a third or half down at the beginning of a job. Usually this will cover materials and the majority of the labor in most cases. My jobs are made to stand on their own. I dont use monies from another job to pay materials for some other. Pretty much the same with labor. The books need to "balance" at the end of every month.
Sounds like a cash flow problem
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Old 12-01-2009, 03:08 PM   #42
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Has nothing to do with cash flow. I have always done business this way and can think of only one customer who flatly refused. Using profits from one job to finance materials & labor for another just doesnt make sense to me. I've seen my share of painters who got caught in the rat race of running up their store accounts only to fall flat on their face if a billing is late, disputed, or refused for whatever reason.
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Old 12-01-2009, 06:42 PM   #43
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Has nothing to do with cash flow. I have always done business this way and can think of only one customer who flatly refused. Using profits from one job to finance materials & labor for another just doesnt make sense to me. I've seen my share of painters who got caught in the rat race of running up their store accounts only to fall flat on their face if a billing is late, disputed, or refused for whatever reason.
I doubt most of those guys fell flat on their face because they didnt take money upfront. Most of those guys fail because they spend all their money from a job on other things and hope the next job will pay for the last couple of jobs material cost. I would say most contractors dont fail because of uncollected money either. The hardest part of running a business is keeping your numbers straight and knowing when you are making money and how much your actually making (overhead) most guys dont "see" money the right way.
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Old 12-01-2009, 07:04 PM   #44
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What we use to purchase "materials" is what I consider "working capital", Monies that we need to always have liquid in order to have proper cash flow. To me it is no different then the money we need for gas, pump maintenance, sundries, insurance, etc... What works for us may not work for others.
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Old 12-01-2009, 07:16 PM   #45
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Originally Posted by aaron61 View Post
What we use to purchase "materials" is what I consider "working capital", Monies that we need to always have liquid in order to have proper cash flow. To me it is no different then the money we need for gas, pump maintenance, sundries, insurance, etc... What works for us may not work for others.
I have to agree with the above - particularly the last sentence. I know guys / gals that only get paid after the job is completed and the owner receives payment from that client. Most painters are accustomed to this type of arrangement. These business models appear to be effective.

Receiving an 80 hr check everyother week is the exception.
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Old 12-01-2009, 07:41 PM   #46
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100% and then some, I am truly not worthy...They will pay you more than you ask for just to have the privelage of your presence... That's a sweeeeeet deal!!!!!!
I am a different breed than most of the local painters, probably because I am not from here. I bring a different attitude with me that is refreshing to most HO that have been dealing with the typical "cash grab" painting companies that sprouted up over the past ten years of the real estate boom.
All of my clients are treated like family, and therefor feel comfortable with simply paying up front.
No special juju or majik, just treating each client as though they were my best and only client.
Of course that is easy for me as a solo painter that never overlaps contracts without the major overhead of crews, and or a fleet of vehicles to consider.
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Old 12-01-2009, 08:14 PM   #47
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I am a different breed than most of the local painters, probably because I am not from here. I bring a different attitude with me that is refreshing to most HO that have been dealing with the typical "cash grab" painting companies that sprouted up over the past ten years of the real estate boom.
All of my clients are treated like family, and therefor feel comfortable with simply paying up front.
No special juju or majik, just treating each client as though they were my best and only client.
Of course that is easy for me as a solo painter that never overlaps contracts without the major overhead of crews, and or a fleet of vehicles to consider.
I assume most professional painters (or any successful biz) would / should conduct themselves in the above manner (common business sense). That would be one hell of a selling point if your competition lacks in the above. Hell, you should own the state if you are the only one treating clients like they should be treated.
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Old 12-01-2009, 09:13 PM   #48
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All of my clients are treated like family, and therefor feel comfortable with simply paying up front.
If I treated my clients like family I would be charging them 110% up front too. I would also purchase one of these counterfeit detectors, to make sure the money is real.
.
I like to take care of my clients to and I think allot of paint companies on PT have the same desire. If they didn't then they wouldn't be successful. By that I mean, surviving this god awful economy we have been in. You got to be good now days to keep getting work. if your not you will never have those clients called "bread and butter" they'll use you once and never again, cause you are also their "bread and butter" and if you get that. You will be one busy cat
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Old 12-02-2009, 02:18 PM   #49
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Originally Posted by fresh coat View Post
I assume most professional painters (or any successful biz) would / should conduct themselves in the above manner (common business sense). That would be one hell of a selling point if your competition lacks in the above. Hell, you should own the state if you are the only one treating clients like they should be treated.
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If I treated my clients like family I would be charging them 110% up front too. I would also purchase one of these counterfeit detectors, to make sure the money is real.
.
I like to take care of my clients to and I think allot of paint companies on PT have the same desire. If they didn't then they wouldn't be successful. By that I mean, surviving this god awful economy we have been in. You got to be good now days to keep getting work. if your not you will never have those clients called "bread and butter" they'll use you once and never again, cause you are also their "bread and butter" and if you get that. You will be one busy cat
So you are saying I am only using common sense...boy, what would I do without you two?

lol.

No you see the idea around here is to send a white guy out to sell a job, then put 10 Mexicans that speak no English on the job, paying them $7.50 and hour to complete the work in 2 days.

I refuse to cheapen my image to make mucho profit~o.
My clients appreciate that greatly.
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Old 12-02-2009, 02:32 PM   #50
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[quote=WisePainter;102028]So you are saying I am only using common sense...

Uh - yes, that is exactly what I am saying. lol
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Old 12-05-2009, 12:24 PM   #51
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Since I started getting deposits 8 years ago I've had 2 cancellations. If a customer wants me to commit to his project, he should also be willing to commit. We get a third at the signing of the contract, a third half-way through the job, and a third at completion.

This payment schedule has greatly reduced collection problems. We used to have situations where we would need to paint a few doors and the customer had disappeared. They would refuse to pay on a $10,000 job because we weren't done, yet they wouldn't make themselves available to let us finish.

Years ago I made an agreement with my banker. I won't lend money and he won't paint houses. If we aren't getting a deposit, we are in fact lending the customer money--we are financing his project.

Brian Phillips
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Old 12-05-2009, 12:54 PM   #52
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I won't lend money and he won't paint houses. If we aren't getting a deposit, we are in fact lending the customer money--we are financing his project.
Brian Phillips
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Old 12-06-2009, 09:50 AM   #53
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Exteriors - 33% down and rest upon completion.
Interiors - 50% down and rest upon completion.

Always do deposits and keep the customer informed on start and completion dates.
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