This is true to a certain extent. Large corporate payments go through the Corporate Accounts Payable Department. I get that, but I have experienced 30 days stretching to almost three months and I find no excuse for that. A small store front can, and should, pay in a timely fashion for services rendered.
I made reference earlier to a large office that pays really well for many cubicles, offices, and panes of glass; they pay like clock work within 7 days. They used to pay through their in house Accounts Payable well after 30 days and I told them I am happy to clean their windows, but I need timely payment. Now it is once or twice a year and the huge check is in my mailbox before 7 days. Net 30, 45, or 90 isnāt the same for the recipient as it is for the payer. It is an advantage to defer money spent. Some call it extending credit. There is a charge for that.
Garry, would you have accepted the account at your price still net 30? or $50 and pay at service? Not that I think those wouldnāt have been their same terms at any price.
This is a little trick I picked of from Bob Burg.
When there is an objection over price, try flipping the script.
Ask the owner/manager what makes them different from the competition? Why should I pay more and buy from them? Not the store down the road. Usually they go into why they are better, stay quiet and let them go on and on. Then say, āI understand, and that is exactly what I am trying to convey to you, about window cleaning.ā
Now it doesnāt work all the time, but it puts you in a better position to negotiate better terms, better pay. In this case Shoe Carnival has built their business on flash in store discounts. So not the best example, but I know it works at Chilliās, Chipotle, and lots of Mom/Pop stores.
That said I prefer residential.
I donāt know if I would have done Net 30 at any price. That is my initial response to that question. Upon reflection, it is on the way to several residentials that I do so making appropriate schedule adjustments I could conceivably do it. BUT - I must admit that I am less inclined to work with someone on something like that when right out of the starting gate they are trying to not only beat me down on the price, but expect professional window cleaner structure of license and $500,000 insurance. I donāt like dolling out $600 for 3 1/2 hours of work on my vehicle, but I donāt tell the garage that I will pay in 30 days and my budget only allows $499. Sure, in the grand scheme of things $4.00 isnāt a big deal. Getting in the habit of lining up bunch of $4.00 is.
I know, I know, everybody does it. Well, except for those who donāt.
@Garry Your 100% correct
This whole thread is the story of walking over nickleās to pick up pennies. Have at it. It leaves the good money out there for the rest of us.
2 different argument points here. One is Net 30. The other is .93 per plate.
Getting paid at Net 30 is fine by me , but not at .93 per plate.
If your a route guy Thsts just he nature if the beast. If a call comes in for a Francesca clothing store an itās right next to 5 other stores you clean Net 30 is not a game changer, but .93 could be.
Everyoneās business is different. We all understand Resi is more profitable , but route work is more reliable the checks keep coming in.
Letās not forget residential requires more over head, An is more labor intense
Yep. Has to be at a fair price too.
And residential generally requires more of those hard-earned profits to be sunk back into the business, along with more unbillable time spent estimating, scheduling, and planning various modes of follow-up and outreach.
Thatās kind of what Iām getting from all of this - pricing debate and terms.
You know how I feel about pricing. Different businesses have different pricing. Different markets? Different pricing. I tire of constant arguing over pricing. You work your side of the street, Iāll work mine. There is no standard price or universal standard.
The net 30 stuff baffles me tho. As much as we hear lectures here about being professional - insurance, websites, marketing budgets and uniforms - Iām stunned that waiting 30 days for a check is such a problem. Itās the way the world works. And it has for years.
No offense to anyone, but I would feel unprofessional demanding payment on the spot. Iāll take it, but not expect it.
I truly get that, and for me I tell them āPayment due upon completionā. And I also add to that āIf you would like to drop it in the mail in a reasonable time then I am good with that.ā
Anyone can write a check or do a quick PayPal payment within 10 days. :-/ My resistance is from those who abuse the agreed upon payment. 30 is 40; 40 is 60; oh itās going out this Friday. Blah.
Where Iām at is I expect it, but I donāt demand it. Does that make sense?
Yeah it does. I hope for it myself but am prepared to play by their rules, as long as they adhere to their rules.
Honestly, with my new route, Iām amazed at how many of the larger restaurants are all paying from their petty cash. Before, majority were net 30 and very consistent. And personally, I prefer the cash on the spot because I fly under the radar with the corporate bean counters the seem to arbitrarily decide that a company cannot afford the service anymore.
Thatās why I said itās the nature of the beast. Thatās the service industry. Do the work first then get paid. Even if you get paid that day itās work first then get paid.
Commercial ,An Storefront are known for waiting multiple days for your money more commercial than Storefront.
If your just a resi guy that does occasional storefronts like Gary, then I donāt blame him for saying no thanks to Net 30.
Now about pricing ā¦every business has over heads ,An employees to pay. Every business needs to be profitable , or they go out if business period. If your a one man band you still pay yourself if you want to live a meager life , An keep your pay low , not scale your business each year so that helps over head thatās totally up to the owner
Not saying thatās your living a meager life Iām just speaking in general.
A business is its own seperare entity you donāt add it to your wifeās salary , or if you get health benifits from your wife who works a job.
I do work with a retired cop. Who has his own separate cleaning business, Becuse he has his pension coming in every month does that mean he should charge less then me ? If so let me know i have to tell him
Thatās what the doctor or dentist does. i find it funny that a dentist we clean for has a sign saying āpayment due upon completion of serviceā but has to mail us a check 1 - 4 weeks later
Different profession. Same as mechanic and grocery stores - Different professions.
I think @Majestic66 explained it best - this is the service industry. Flip the script for a second. Look at it from the stores view. Does the floor guy get paid as soon as heās done? How about the linen,uniform and rug guy? Do the food vendors demand payment from a restaurant before the truck leaves the parking lot? Not usually. They leave an invoice. If a customer falls behind, then they may change things so as not to get burned.
That said, if our success will allow us to narrow our expectations, then all the better. But we shouldnāt be surprised when we cannot rewrite the accounting policies of potential customers.
people are in the habbit of net 30 because people accept it, if the good window cleaners all refused and the stores would be left with the desperate window cleaners and would likely be unhappy and it would slowly change their policies
True fact right there.
I think what irks me about this āNet 30ā scam is that many of these customers also want to beat you down on the price; like they are doing you a favor.
Even expert advice is to offer 2% discount to pay early. (Read - Iāll drop my price 2% more if you just pay me).
Hah! Offer a 30+ day line of credit and slash your price doing it?
I say no! Payment is due at time of completion or within 10 days; after that 5% is added to the bill.
Credit companies charge interest and late fees, and these folks are asking for credit and a discount. Perhaps it is time to change the rules. Net 30? Okay, hereās the terms; 50% up front, 50% due in 30 days. If your business is one that has so many outstanding invoices that they start to overlap and payment is a non-issue because of volume, then good for you. Iām just a guy working for a living.
Yeah, I agree with Garry. Iām not a bank. I do 30 days with some of my commercial clients. Only do it with ones that do not have an in house person that cuts the check. Iām ok waiting on a check that is several hundred to several thousand.
Store front, not interested in waiting 30 days or more for payment. We are talking small amounts of money. Pocket change. 20-100 bucks, why canāt you pay it out of the till? Like itās been pointed out, many if not all expect their payment at the time of service, so why canāt I expect the same?
Banks charge interest. Iām not a bank. When they expect to be able to wait to pay me the money they owe, I am making them an interest FREE loan.
I hate doing commercials because: A. usually looking for the lowest price B. take forever to pay. However, this very nice lady called me from a well known corporate account wanting me to give her a price on cleaning SIX windows (15min. of work) inside a mall on one of her stores. (Iām basically thinking this is not even worth my time at a fair market value and forget to call her back). She calls me a week later and I apologetically told her I forgot and would get her a price ASAP. I left her a voicemail the next day and told her, āthe best I can do is $60, I know itās probably not worth it but itās really not profitable for me otherwise and I totally understand if youād like to find another quoteā I assured her I would show up and consistently get the job done so she wouldnāt be searching for another cleaner. She actually called me back the next day and asked me when I can schedule them and she does her accounts payable every two weeks! Albeit a rare situation, I still prefer Residential.
Even when you āhave the talk with themā it can happen.
I have this electric company office that I do quarterly and the owners residence on the same ticket, same day. I do them on a Monday or Tuesday quarterly.
The agreement was if I get the invoice to the office girl by Thursday then she will cut a check on Friday. This quarter did it on the 14th, Monday. No check by a week and half later, Wednesday 23rd. Thursday, 24th, I call and she says it hasnāt been sent yet. WTH? Remind her of the agreement, says it will go out Friday (meaning 25th). Today, 29th, no check. Hmmm, probably tomorrows mail. Going to have to put it in writing I guess. grrr.