Lesson Learned. Shoulda Known Better Though...

 
Thread Tools Search this Thread Display Modes
Old 11-27-2017, 11:01 PM   #1
Fine Handcrafted Opinions
 
Bearded Wonder's Avatar
 
Trade: General
Join Date: Jan 2011
Location: Fort Worth Tx
Posts: 936
Rewards Points: 1,204

Lesson Learned. Shoulda Known Better Though...


So in my new found working for myself again, I have been really fairly disciplined about “doing business the right way”, which I wasn’t before.

However, I recently did a roof replacement for a relative, an insurance claim. When I requested a draw to cover materials, my aunt asked if she could pay the roofing supply with her credit card “for the points”?

I said “you know what, I know you guys, I’ll cover it and get the first draw next week when we start”, trying to gracefully wiggle out of it. She persisted and I said fine, and she paid the roofing supply.

Then we had $700 worth of materials left over. I take it back to the yard, find out the only way to get refund is to put it back on her card. Can’t figure out a graceful way to tell her that money is rightfully mine, so I’m just eating it.

Shoulda coulda woulda....


Sent from my iPhone using Tapatalk Pro
Bearded Wonder is online now  

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 11-27-2017, 11:09 PM   #2
Fire up the BBQ
 
griz's Avatar
 
Trade: GC
Join Date: Nov 2009
Location: CA
Posts: 18,921
Rewards Points: 18

Re: Lesson Learned. Shoulda Known Better Though...


Why is there $700 in material to return?

In the long run returns end up costing you money....

Advertisement

__________________
SOME JOBS JUST AREN'T WORTH DOING:
griz is offline  
Old 11-27-2017, 11:11 PM   #3
Fine Handcrafted Opinions
 
Bearded Wonder's Avatar
 
Trade: General
Join Date: Jan 2011
Location: Fort Worth Tx
Posts: 936
Rewards Points: 1,204

Re: Lesson Learned. Shoulda Known Better Though...


Was lazy and just ordered what the adjuster figured plus one square...


Sent from my iPhone using Tapatalk Pro
Bearded Wonder is online now  
The Following User Says Thank You to Bearded Wonder For This Useful Post:
griz (11-27-2017)
   
 
Old 11-28-2017, 02:47 AM   #4
Pro
 
VinylHanger's Avatar
 
Trade: I'll do that for 500 bucks.
Join Date: Jul 2011
Location: Oregon
Posts: 8,222
Rewards Points: 6,932

Re: Lesson Learned. Shoulda Known Better Though...


I would explain that it is part of your price. She should understand. 700 bucks is a good bit of coin heading into winter.

In the other hand, if you had bid it properly, you wouldn't have been 700 dollars over, so it wouldn't exist.

Did you at least get your markup? I have customers who want to use their card for the points or cash back. I have no problem with that. I do however let them know I am still charging my full markup.

Sent from my SM-G930V using Tapatalk
__________________
Your emergency does not constitute a problem with my Constitution.
VinylHanger is online now  
Old 11-28-2017, 05:23 AM   #5
John the Builder
 
SmallTownGuy's Avatar
 
Trade: Carpenter/Builder
Join Date: Sep 2012
Location: Oxford, MI
Posts: 11,284
Rewards Points: 7,304

Re: Lesson Learned. Shoulda Known Better Though...


...
__________________
Net Zero Energy Is Here Now
“The worst day working for yourself, is still better than the best day working for someone else!”
..Jim Rohn
SmallTownGuy is online now  
Old 11-28-2017, 06:59 AM   #6
Pro
 
Big Johnson's Avatar
 
Trade: Contractor and Grunt
Join Date: Jun 2017
Location: Michigan
Posts: 1,045
Rewards Points: 1,163

Re: Lesson Learned. Shoulda Known Better Though...


That extra money is your charge for drive time, coordinating the materials and delivery, estimating the job and the risk of having to deal with potential warranty issues in the future. Tell her if you don’t get that money you can be around to deal with warranty for failed products that aren’t your fault. $700 might seem to her to be a little high for a small roof but if that’s what it is....

Last edited by Big Johnson; 11-28-2017 at 07:01 AM.
Big Johnson is offline  
Old 11-28-2017, 07:39 AM   #7
Fine Handcrafted Opinions
 
Bearded Wonder's Avatar
 
Trade: General
Join Date: Jan 2011
Location: Fort Worth Tx
Posts: 936
Rewards Points: 1,204

Re: Lesson Learned. Shoulda Known Better Though...


I quoted it to make money assuming I would use all the materials, so hypothetically if we had used it all then that extra $700 wouldn’t exist for either of us. So it was still a good and profitable job, I just look at that $700 as money I basically threw in the garbage. That was like most of a new AR-15 or something I just decided I didn’t want...


Sent from my iPhone using Tapatalk Pro
Bearded Wonder is online now  
Old 11-28-2017, 07:42 AM   #8
Pro
 
Big Johnson's Avatar
 
Trade: Contractor and Grunt
Join Date: Jun 2017
Location: Michigan
Posts: 1,045
Rewards Points: 1,163

Re: Lesson Learned. Shoulda Known Better Though...


Quote:
Originally Posted by Bearded Wonder View Post
I quoted it to make money assuming I would use all the materials, so hypothetically if we had used it all then that extra $700 wouldn’t exist for either of us. So it was still a good and profitable job, I just look at that $700 as money I basically threw in the garbage. That was like most of a new AR-15 or something I just decided I didn’t want...


Sent from my iPhone using Tapatalk Pro

Can you have the supply house issue you an in-store credit for a future job?
Big Johnson is offline  
Old 11-28-2017, 08:12 AM   #9
Contractor of the Month
 
Inner10's Avatar
 
Trade: Control Systems
Join Date: Mar 2009
Location: Ottawa, ON
Posts: 22,561
Rewards Points: 10,144

Re: Lesson Learned. Shoulda Known Better Though...


Quote:
Originally Posted by Bearded Wonder View Post
So in my new found working for myself again, I have been really fairly disciplined about “doing business the right way”, which I wasn’t before.

However, I recently did a roof replacement for a relative, an insurance claim. When I requested a draw to cover materials, my aunt asked if she could pay the roofing supply with her credit card “for the points”?

I said “you know what, I know you guys, I’ll cover it and get the first draw next week when we start”, trying to gracefully wiggle out of it. She persisted and I said fine, and she paid the roofing supply.

Then we had $700 worth of materials left over. I take it back to the yard, find out the only way to get refund is to put it back on her card. Can’t figure out a graceful way to tell her that money is rightfully mine, so I’m just eating it.

Shoulda coulda woulda....


Sent from my iPhone using Tapatalk Pro
How is the $700 yours? Really....

You her a price of X for materials and labour. She paid materials directly, she get's the refund for extra materials. You still made your labour and the markup on the initial material purchase. How is that money yours?

Sure if you bought the materials, the refund for extra would be yours...but it would be because YOU paid for them...you didn't pay for these so they belong to her.
__________________
The Following User Says Thank You to Inner10 For This Useful Post: Leo G
Inner10 is online now  
The Following 7 Users Say Thank You to Inner10 For This Useful Post:
brickhook (11-29-2017), flashheatingand (11-28-2017), jproffer (11-28-2017), NYgutterguy (11-28-2017), parkers5150 (11-28-2017), pinwheel (11-28-2017), Seven-Delta-FortyOne (11-28-2017)
Old 11-28-2017, 08:19 AM   #10
Pro
 
KAP's Avatar
 
Trade: Custom
Join Date: Feb 2011
Posts: 8,376
Rewards Points: 23,412

Re: Lesson Learned. Shoulda Known Better Though...


If you're not going to just refund it and want to try and claw some of it back to cushion the winter months, don't stress over it, but be straight forward and tell her...

"great news Auntie M... After maximizing yield, I was able to find a way save $700 on materials. Normally that goes toward incidental costs of being in business for myself, like material handling, warranty service, a little money for the company to help keep a paycheck during the slow months, (whatever your criteria is), but being that we're family, I thought I'd not take as much this one time and give you half. Just don't tell everyone you refer me as this is just between us. Because we put it on your card for points, I'll have them credit the $700 back to your card and you can just give me a check for $350 and then (joke) don't forget to make me a nice dinner "...

Personally, I'd let this one go, and let the good will come back to you...

Last edited by KAP; 11-28-2017 at 08:58 AM.
KAP is offline  
Old 11-28-2017, 08:20 AM   #11
Fine Handcrafted Opinions
 
Bearded Wonder's Avatar
 
Trade: General
Join Date: Jan 2011
Location: Fort Worth Tx
Posts: 936
Rewards Points: 1,204

Re: Lesson Learned. Shoulda Known Better Though...


Quote:
Originally Posted by Inner10 View Post
How is the $700 yours? Really....



You her a price of X for materials and labour. She paid materials directly, she get's the refund for extra materials. You still made your labour and the markup on the initial material purchase. How is that money yours?



Sure if you bought the materials, the refund for extra would be yours...but it would be because YOU paid for them...you didn't pay for these so they belong to her.


You articulated my point exactly... It’s NOT mine, but had I just ran everything through normal channels it would have been. Now it’s just a $700 momentary lapse in judgement.


Sent from my iPhone using Tapatalk Pro
Bearded Wonder is online now  
Old 11-28-2017, 08:22 AM   #12
Contractor of the Month
 
Inner10's Avatar
 
Trade: Control Systems
Join Date: Mar 2009
Location: Ottawa, ON
Posts: 22,561
Rewards Points: 10,144

Re: Lesson Learned. Shoulda Known Better Though...


Quote:
Originally Posted by Bearded Wonder View Post
You articulated my point exactly... It’s NOT mine, but had I just ran everything through normal channels it would have been. Now it’s just a $700 momentary lapse in judgement.


Sent from my iPhone using Tapatalk Pro
No it wouldn't have! Because it would have gone out of the left pocket and back into the right. You are in EXACTLY THE SAME FVCKING SITUATION!
__________________
The Following User Says Thank You to Inner10 For This Useful Post: Leo G
Inner10 is online now  
The Following User Says Thank You to Inner10 For This Useful Post:
Seven-Delta-FortyOne (11-28-2017)
Old 11-28-2017, 09:06 AM   #13
Pro
 
SectorSecurity's Avatar
 
Trade: Low Voltage Wiring
Join Date: Nov 2013
Location: Ontario
Posts: 4,048
Rewards Points: 2,828

Re: Lesson Learned. Shoulda Known Better Though...


I don't even know if my supply house would let me pay with someone else's card.

They sell to the trades only for a reason so we don't have to compete against every Sally home owner coming in wanting to buy the materials.

Sent from my XP7700 using Tapatalk
SectorSecurity is offline  
Old 11-28-2017, 11:14 AM   #14
Pro
 
hdavis's Avatar
 
Trade: remodeling
Join Date: Feb 2012
Location: CoastalME
Posts: 18,972
Rewards Points: 3,559

Re: Lesson Learned. Shoulda Known Better Though...


If the materials are yours by contract, sell for $400, someone will buy.
hdavis is offline  
The Following 2 Users Say Thank You to hdavis For This Useful Post:
pinwheel (12-01-2017), SmallTownGuy (11-28-2017)
Old 11-28-2017, 11:40 AM   #15
John the Builder
 
SmallTownGuy's Avatar
 
Trade: Carpenter/Builder
Join Date: Sep 2012
Location: Oxford, MI
Posts: 11,284
Rewards Points: 7,304

Re: Lesson Learned. Shoulda Known Better Though...


Quote:
Originally Posted by hdavis View Post
If the materials are yours by contract, sell for $400, someone will buy.
That was my thought
__________________
Net Zero Energy Is Here Now
“The worst day working for yourself, is still better than the best day working for someone else!”
..Jim Rohn
SmallTownGuy is online now  
The Following User Says Thank You to SmallTownGuy For This Useful Post:
hdavis (11-28-2017)
Old 11-28-2017, 03:05 PM   #16
Pro
 
flashheatingand's Avatar
 
Trade: H.v.a.c.
Join Date: May 2008
Location: Boise, Id
Posts: 3,864
Rewards Points: 3,416

Re: Lesson Learned. Shoulda Known Better Though...


I don't think the $700 should be "yours" either. Maybe a trip charge for returning materials. But, since she paid directly for the materials, I believe, she is entitled to the full refund...minus trip fee.

Being its your Aunt, makes everything a tricky situation. Next time, I would set guidelines regarding customer buying materials. Before dicey situations arise. Frequently, I joke with the guys that I should call our business, Next Time HVAC. Because usually, when we get done, one of us says".... Next time, we will...."
__________________
http://www.37flash.com/
flashheatingand is offline  
Old 11-28-2017, 06:39 PM   #17
Pro
 
avenge's Avatar
 
Trade: Remodeling
Join Date: Sep 2008
Location: Not here
Posts: 2,476
Rewards Points: 2,576

Re: Lesson Learned. Shoulda Known Better Though...


Let me contact your aunt so I can tell her you ripped her off.
avenge is online now  
Old 11-28-2017, 07:14 PM   #18
always building
 
parkers5150's Avatar
 
Trade: general constructiion
Join Date: Dec 2008
Location: North County San Diego Fallbrook CA
Posts: 1,578
Rewards Points: 1,678

Re: Lesson Learned. Shoulda Known Better Though...


i think you should go back and read your OP
Then you should probably reinvent your newly reinvented business practices
__________________
"Building trust one job at a time."
www.RDPontheWeb.com
San Diego Contractor Deck and Patio Cover Builder
parkers5150 is offline  
The Following User Says Thank You to parkers5150 For This Useful Post:
SmallTownGuy (11-28-2017)
Old 11-28-2017, 07:27 PM   #19
Pro
 
Bull Trout's Avatar
 
Trade: General Contractor
Join Date: Dec 2016
Location: Salish Sea
Posts: 364
Rewards Points: 186

Re: Lesson Learned. Shoulda Known Better Though...


Why didn't you just have her pay you with a CC?
Bull Trout is offline  
The Following 2 Users Say Thank You to Bull Trout For This Useful Post:
flashheatingand (11-28-2017), Inner10 (11-28-2017)
Old 11-28-2017, 08:18 PM   #20
Contractor of the Month
 
Inner10's Avatar
 
Trade: Control Systems
Join Date: Mar 2009
Location: Ottawa, ON
Posts: 22,561
Rewards Points: 10,144

Re: Lesson Learned. Shoulda Known Better Though...


Quote:
Originally Posted by Bull Trout View Post
Why didn't you just have her pay you with a CC?
Because then he would loose 2.5%!

Advertisement

__________________
The Following User Says Thank You to Inner10 For This Useful Post: Leo G
Inner10 is online now  


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The School of hard knocks. What I've learned while running my business lawndart Business 87 11-13-2017 11:36 PM
Rookie Contractor mistake...lesson learned donb1959 Painting & Finish Work 20 03-25-2013 09:29 PM
Has anyone learned a way to make Service Magic stop listing your company name? DFW Solution Online Leads Services 32 07-13-2012 05:44 PM
I learned something new today..... AmeliaP General Discussion 16 04-27-2012 08:00 PM
Learned a little lesson in sales this past week dirt diggler Marketing & Sales 11 03-04-2007 11:52 AM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?