New Clients

Al Taper

I was talking to a friend who has a larger plumbing company. He runs a union shop. We were talk about what people charge. He was saying with new clients he charges more at frist.It was like $15.00 per hour higher.
But when he has worked for them for a few jobs. And he know that they pay. He will drop the price.
Is that customary in commercial work?

Bob Kovacs

"Customary"? I wouldn't say that, but I would say that many contractors will reduce their costs as the become comfortable with a client and realize that the money is going to be there when its supposed to be. The time value of money is pretty substantial on many commercial jobs, and the payment terms are often fairly long even when payments are received per the contract- even a short delay in payment can be very damaging.

Al Taper

Thanks Bob..

I would say if you have a good payer. You would take care of them, with better prices.

If you have to fund a job then i can see chargeing more.
But on small work, Do they make you wait on money too.

Jason Whipple

I would ask them what the terms of payment are before I gave any prices. I've waited 45 days for a $200.00 payment before!

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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Al Taper

That sucks..

Jason Whipple

Not really, I knew them terms before going into it. It was a facilities maintenance call.

The job took about 2.5 hours.

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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