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  • Question to all the business owners.

    I received a call the other day from a new customer for an aluminum walk ramp. We exchanged all of our business information. I head back to my shop, fax him a price. He calls right up,cathes me totally off gaurd and says "how much if I pay you in cash". I told him the price is the price! I don't play any games. So, in my six years of buiness, I have never had anyone ask to pay in cash. If this happens to you guys do lower your labor by 5 or 8% and keep the cash. I just dont want to rip him off and surely not myself. Thanks
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  • #2
    I accept cash or check. The price is the same either way. As long as the check is good, it's the same thing as cash to me.
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    • #3
      From the other side of the table...

      As a customer, I never* ask for a "cash discount" and
      if someone offers me one, I assume that he's cutting
      some accounting & financial corners someplace, and
      could just as easily be cutting some welding (or
      whatever) corners too....

      "Character is what you are in the dark"

      Frank

      * Well, not quite never ... some places, such as my local gas
      station, give a small discount for cash/check as opposed to
      credit card sales. I know that the C.C. companies take a
      cut, so if the sale is not C.C., and they want to pass some of
      the savings on to me, that's ok... but these deals are posted
      so it's not like they're trying to hide anything.

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      • #4
        If he pays cash, do your costs go down? Probably not. Some guys I have dealt with discount a little for cash because they know it's good, whereas a check might bounce, and a few discount for cash because they play games with taxes and insurance, but for the most part, none of the honest ones will discount cash. I prefer not to do business with the crooked ones if I can avoid it, and I generally can.

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        • #5
          If you price your work based on taking payment through credit cards or revolving 30 day billing YES give them a discount. SOP

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          • #6
            The idea of the cash payment is that he doesnt want a paper trail from you, in which case you do not have to register the job on your books and the cash goes straight to your pocket. It depends on the job, if its a quick job to an individual I give cash discounts all the time.
            If however the guy is representing a large company or the job is more than 2 hours long than I'm less likely to work under the table.
            I use cash to negotiate discounts with others as well. Particularily those whom I deal with on a subcontract level. They make their money off of me providing them with jobs from my contact pool. But if for example I need a small piece machined for my personal needs, cash or barter for services is the norm.
            sigpic

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            • #7
              Cash is KING,
              cut him some slack.
              America, Clinging to our Guns and Religon since 1776.

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              • #8
                Yep cash work is indeed king, no taxes, just have to remember NOT to stick into your business account if you havee one. So if he can't write it off which seems to be the case, I usually give 10% off retail.
                Last edited by cruizer; 06-02-2010, 09:40 AM.

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                • #9
                  All of my work is terms. Net 45. So I started doing a 2%20days Net 45.
                  If they pay in 20 days or less then they get a 2% discount because I get the money sooner. Cash falls into that catagory. All of my customers take advantage of the 2%. Even the one major account that keeps trying to get me to do a EOM60! That is "End of month +60 days". So all the jobs done say during May, the money will show up 60days starting June 1. Not my favorite plan.

                  your business your terms. You have enough boss's stand up for your money.

                  Just my opinon.
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                  • #10
                    Originally posted by 1havnfun View Post
                    All of my work is terms. Net 45. So I started doing a 2%20days Net 45.
                    If they pay in 20 days or less then they get a 2% discount because I get the money sooner. Cash falls into that catagory. All of my customers take advantage of the 2%. Even the one major account that keeps trying to get me to do a EOM60! That is "End of month +60 days". So all the jobs done say during May, the money will show up 60days starting June 1. Not my favorite plan.

                    your business your terms. You have enough boss's stand up for your money.

                    Just my opinon.
                    That is a GREAT idea.
                    I have a customer that does the exact same thing (EOM60)... and it REALLY pisses me off!!! I'm going to give that a try.
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                    • #11
                      I have had 2 or three that did the EOM60 on me and they had to go and beg me back and pay me when I was finished from then on.
                      IMO they are telling me to shove it in my @$$ so I made sure they knew that they will have to kiss mine for as long as we do business.
                      I take cash. I don't usually work cheaper on anything over say $100 for cash tho.
                      What gets me is the guy who wants a discount for cash and then asks for a reciept.
                      Better yet I've had the steel guy offer me a big discount for cash and then charge tax!!
                      I actually prefer checks both ways, in and out.

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                      • #12
                        The EOM60 reminds me of a guy I once met. He was an employee for a multibillion dollar corp. He told me the way of businesses today is that they, (the corp.), would collect all debts right away up to the point of harassing the debtors. They, ( the corp.), would not pay their debts until months overdue. Sometimes wouldn't pay until services or further sales were cut off. The corp. then showed these unpaid debts as monetary income each month until they had to pay. Pretty sorry when you have to lie and steal to increase the bottom line.
                        Sometimes there's no second chances.

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                        • #13
                          the problem with EOM60 is that I don't know about you guys, but we still have rent to pay, not to mention gas and electric bills (and funny they don't let us slide -they actually will disconnect!)...
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                          • #14
                            I thought about doing the discount thing for payments made early by laying it out on the invoice (total due $1000, total due if recieve by xxdate $980) But I wonder if they would simply just start cutting me cheques for smaller amount but not nessesarily pay any faster. Have you run into that?

                            The story they tell me is that it takes at least 45days to process each invoice so its nearly impossible to pay any faster than 60ish days.
                            sigpic

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                            • #15
                              Originally posted by Freelance Fabber View Post
                              I thought about doing the discount thing for payments made early by laying it out on the invoice (total due $1000, total due if recieve by xxdate $980) But I wonder if they would simply just start cutting me cheques for smaller amount but not nessesarily pay any faster. Have you run into that?

                              The story they tell me is that it takes at least 45days to process each invoice so its nearly impossible to pay any faster than 60ish days.
                              That sounds like a load of horse crap. Unless they are a multimillion dollar company and have one person in accounting. One of my customers that has done the opposite of most of these places. The last invoice I gave them (the biggest one yet) they decided to pay early just to keep me happy and ensure I come back to do more work for them.

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