Non payers (in the electrical industry)

[ians]

People think being self employed is a means to get rich quick ... if only they knew the challenges we face ... I could have paid off my house ... be 100 % debt free and gone on holiday and still had change in the bank if every customer had paid me every cent outstanding over the past 30 years ... even they small R2000 bad debits add up over time.

Then you have a dick screw you and it could take 5 years to recover ... if you stubborn enough enough to ride it out ... which I have done on a few occasion ... that why using ruthless measures to recover debts is not always a bad thing ... sometime you have to do what t takes to get what is due to you ... if your family must suffer why cant they.

[skatingsparks]

People think being self employed is a means to get rich quick ... if only they knew the challenges we face ... I could have paid off my house ... be 100 % debt free and gone on holiday and still had change in the bank if every customer had paid me every cent outstanding over the past 30 years ... even they small R2000 bad debits add up over time.

Then you have a dick screw you and it could take 5 years to recover ... if you stubborn enough enough to ride it out ... which I have done on a few occasion ... that why using ruthless measures to recover debts is not always a bad thing ... sometime you have to do what t takes to get what is due to you ... if your family must suffer why cant they.

Ride what out though. Once "the letter" is sent, if they don't respond then as said above you need a bottomless budget for lawyers (of lawyer friends).

I have a good mind to go just rip it out. They can't prosecute murderers in this country. They ain't going waste there time of someone who took back there own stuff. And even if they do it'll be dragged out for so long...

What bugs me the most, really grinds me. I have given then absolutely no reason not to pay. Our prices were good and, not just saying this, we did a really good job. I mean really good - a frikin work of electrical art.
The owner of the stand was really happy and it looks fantastic.

[Derlyn]

I, like other toppies here, have been in the game for a long time.

One learns as you go along.

I cannot speak for anyone else but my experience has been that non payment or reluctant payers has become a bigger problem than what it was 20 or 30 years ago.
You adjust your terms accordingly as you go.

As far as I'm concerned, the most important part of payment for any job is the commissioning deposit.
This deposit should cover at least ALL the materials and consumables for the job and a 30% markup on same.
If this deposit is not paid, I don't put foot on site. If the client is hesitant to pay this deposit, it is a clear sign of future payment problems as well.
I don't take on huge projects and find that 60% of quoted price usually covers it.

If you stick to the above rule, it will not be necessary to go and remove anything in the event of non payment on the completion of a job because the materials have already been paid for.

Never, never use your own money to buy materials. Always the clients money.

If you operate this way and don't get your final payment as promised, walk away, write their name in your little black book and move on.
You would not have made money on the job, but more importantly, you haven't lost enough to break you.

Peace out ... Derek

[ians]

The problem is simple ... we as small operators dont take the right measures to protect ourselves .. why because we are stupid enough to charge such ridiculously low rates and dont insure the project payments ... its not rocket science ... the bigger you get the smarter you get ... and as you will notice when bigger companies fold ... or a development goes belly up ... its only the suckers who loose ... everyone else has measures in place.


Like the wholesaler ... who you think loosing a bunch of money when you dont pay them ... they just claim from insurance ... and who pays for that insurance ... you and I ... why do you think they give you all those documents to sign ... and expect you to put up your house ... your pension fund .. .your childrens education policy and everything else ... so that their insurance company can milk you because they can afford the resources.

[Derlyn]

Like the wholesaler ... who you think loosing a bunch of money when you dont pay them ... they just claim from insurance ... and who pays for that insurance ... you and I ... why do you think they give you all those documents to sign ... and expect you to put up your house ... your pension fund .. .your childrens education policy and everything else ... so that their insurance company can milk you because they can afford the resources.

I pay cash. Use the client's money. No documents to sign.

I am one of their preferred clients.

Peace out .. Derek

[ians]

I pay cash. Use the client's money. No documents to sign.

I am one of their preferred clients.

Peace out .. Derek

And thats the sad part ... you dont qualify for the kind of discounts offered to the customer with accounts and you loose out on the additional 5 % discount if you pay in 30 days.

Like me you are a small fish swimming in a BIG pond ... our little R50 - R100k monthly purchases dont even get us a seat in the account cubicals.

[Derlyn]

And thats the sad part ... you dont qualify for the kind of discounts offered to the customer with accounts and you loose out on the additional 5 % discount if you pay in 30 days.

Like me you are a small fish swimming in a BIG pond ... our little R50 - R100k monthly purchases dont even get us a seat in the account cubicals.

Ian

Don't know about the sad part. That's exactly why I add 30%.

I'm a very happy small fish.

Piranhas are small fishes as well.

Peace out .. Derek