Also if you supply materials,get money up front.Your not likely to to be paid before g.c. gets progress payment for phase of work related to your work.If job is bank financed, bank may also have to inspect work before releasing funds to g.c..Grumpy said:True story. A new GC just hried me to do his roof, siding and gutters on a home. I called his partner and asked when I was going to get paid about 3 days after we finished. He said that I had to get the money from the title company, but I've got the color for your siding. Next day his partner called me to ask when we were starting the siding to which I responded "when can I expect my check?" I got paid the next day... still haven't started the siding.
Are you allowed to mark-up your bill by 2% before giving it to them?bergenbldr said:Best way to deal with gc's might be to offer net10 days at 2%discount and 2% late fee after 30 days just like most suppliers.
So mark up it up 2% beforehand. When i buy on trade credit the cost of that credit is worked into what ever i buy ,if i pay early and take the discount i'm realy paying the market price in the end. Same principle at work here.Mike Finley said:Are you allowed to mark-up your bill by 2% before giving it to them?
If not I would not bend over and give up 2% of pure profit to anybody, especially just for the novelty of them doing what they are supposed to be doing, which is pay there God damn bill.
Grab a calculator and figure out what 2% gross off the bill equates to percentage wise in profit - 10%? That's ridiculous! :evil:
Mike, i would only consider this in a bussiness to bussiness transaction, never in a sale to a consumer. I'm certain homeowner buying from my supplier would never get a cash discount as a contractor buying on account would. There is a big difference between subcontracting and selling directly to the consumer.Mike Finley said:I'm just too greedy, if there is the potential for marking up 2% more, I have already done it, I don't like leaving money on the table and I especially don't like some loser getting in my pocket just for the sake of him paying his bill on time. That's just me. In other businesses I ran when dealing business to business after 30 days they got a statement and a phone call, after 90 they went to collections or small claims court. If you make it abundently clear with your clients exactly the responsibilities each of you have before the work begins and each of you acknowledge it : Me - provide you with awesome service unparalled - You - pay me what we agree to and on time. Then I have never had a problem calling a dirt bag slow payer exactly what he is - a dirt bag slow payer, and by the way, I want my money today!
I had a homeowner just recently wanting me to hold off depositing his check for a week, that doesn't go over too well just for the sake of his convience of not having to move money around. The check is due upon customers final walk through and presentation of the invoice.
But that is residential dealing with the homeowner, not working as a sub. Obviously you can tell I wouldn't work as a sub.
Yes there is a difference in dealing with a GC and a consumer, but their is no difference in giving up 2% of the gross which could be as high as 10-15% of the actual profit.bergenbldr said:Mike, i would only consider this in a bussiness to bussiness transaction, never in a sale to a consumer. I'm certain homeowner buying from my supplier would never get a cash discount as a contractor buying on account would. There is a big difference between subcontracting and selling directly to the consumer.