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Business Question for Plumbers

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  • #16
    Re: Business Question for Plumbers

    I envy you. My town was pretty rural when I was growing up, but the building boom hit in the 70's and really has never slowed down. Gone are the days of business with a handshake. Better times, happier times all lost for want of a dollar.

    sigpic

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    • #17
      Re: Business Question for Plumbers

      When I moved into our valley there were 14,000 people here. Today we are closing in on 300,000 and the housing market has not slowed down.

      Mark
      "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

      I never lost a cent on the jobs I didn't get!

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      • #18
        Re: Business Question for Plumbers

        with the size of the jobs we use to bid on, there was always a 10% for 1 year retention. this was to ensure that any issues were resolved because 10% of 1 million was 100k.

        not every job was a simple turn in a billing statement, get paid.

        typically payments came with inspection signatures. ground work, rough in, finish. of course there were progress payments/ percentages on the large jobs. we would work a job with anywhere from 3 to 30 guys on a job. so money came in big and went out bigger.

        running work was the easy part. running the business was the owners part. and he knew how to do it. he couldn't plumb, but he could make money due to his business skills and work force.

        i know that with some developers, getting paid in full for extras was the hard part.

        now on my own end, things are different. i very rarely ask for a deposit or any money up front. but then again my billing, out of pocket is minimal except for labor. i get 30 days from my suppliers and if i pay by c.c. i lose the 2% discount, but get an additional 30 days with it. so realistically, i have close to 60 days on my material. my labor is just myself and i can float that for a rainy day. works good when i'm out of town and there are checks in the mail.

        i think if you build a relationship with a contractor, there will be a trust issue and money will not be an issue with getting paid.

        rick.
        phoebe it is

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        • #19
          Re: Business Question for Plumbers

          Originally posted by Dirtyhands
          Unfortunately I don't feel comfortable leaving 35% on the table so the homeowner/builder can get a handyman to set finish or he can give me the "I don't have any money,how bout 25cents on the dollar".I've always been paid.Just don't like the way things are going downhill(in a moral sense).
          Although it was rare, I did get jobs where either the HO or someone else finished. Most of my jobs were not done under written contract, but when they were, they were mostly ignored. When they were ignored, it was usually some upstart farmer turned contractor who thought they were hot stuff.

          After the banks tightened up, I was no longer able to get anything up front in most cases.

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