Selling

[Scott D.]

I require a 50% non refundable deposit from residential customers on any job over $500.00. I have never had a problem with this. I do it to prevent the customer from hiring a low baller after we have scheduled a date for the job to be performed. I am usually scheduled 2-3 weeks out, and if the job is over $500.00, I just feel the the customer needs to make a committment just as I am with my schedule. It sort of locks them. If they don't want to do this, then I tell them I can call them during a slow period to see if they want it then.

90% of my jobs are paid before I do the job, including "new" cusotmers. This is done usually when I arrive on the job and the customer doesn"t want to hang out all day at the house, or has to go to work, and they ask me if they can pay me now because they are leaving and don't want to have to rush back. Also have many "new" cusotmers that I haven't even met that will just leave a check under the mat if they aren't going to be there when I arrive.
I am very active in the community, leave very proffesional and detailed proposals, return every phone call and I always show up on time for every appointment. And I am not saying that others here don't. Don't get me wrong on this. What I am saying is that I work real hard to develop trust with each customer from the very first phone call, and I believe that helps in securing deposits, payed up front, etc.

Totally different situation. This is how we work as well.

 

[Doug Rucker]

Payment upfront isn't only shady, but what if they absolutely do not like the work you did and you cant please the homeowner. Will you give them their money back? What if something happens where you cant get to the job for a while? Anyways, let us know how it work out!

Absolutely I would give them there money back if I can't make them happy. I will tell you this has never happened though.

If something happens and I can't get to the job for a while. I will call the customer, and explain the situation, reason for delay, and ask if they would like their deposit back. I'm not out blowing their money the day I get it. Anytime a customer would want hi/her money back I would not hesitate for second. I'd probably take them the cash immediately.

To me it's not shady, it's how business is done.

 

[Ron Musgraves]

Ron do you see any flaws in my new process for residential work?

If you secure payment I see nothing wrong with that. I too would have partial deposit for anyone booked. I wouldn't care if it was my sister.

The guys the complain about the customer running them around need to learn from this thread. All the larger companies are operating like this.

It's the wave of the future!!!

I would tend to say people that are serious will book and know your coming. If the use visa they are protected should you go out of business or provide shitty service.

It's a win win!!!

 

[Scott D.]

Ron Ive never been asked to pay up front for a service at my home. Which big residential companies are you talking about?

 

[Derek Belden]

I can understand a deposit for bigger residential jobs. But full payment for a job that is a4 weeks out, I PERSONALLY just can't see that justifiable. If it is a 300 dollar job and I am that worried about the person not paying me, that I need to secure full payment 4 weeks before the job is due to be completed I just wouldn't deal with that customer. This is just my opinion

 

[DJ Carroll]

I can understand a deposit for bigger residential jobs. But full payment for a job that is a4 weeks out, I PERSONALLY just can't see that justifiable. If it is a 300 dollar job and I am that worried about the person not paying me, that I need to secure full payment 4 weeks before the job is due to be completed I just wouldn't deal with that customer. This is just my opinion

For me it's simple. I am doing it to stream line operations. Having crews scheduled to do work and then all of a sudden i get a cancellation it's different if i have to guys scheduled to come in that day to clean... now what do i do with them?

The other side of the coin is a sales reason.

 

[Derek Belden]

For me it's simple. I am doing it to stream line operations. Having crews scheduled to do work and then all of a sudden i get a cancellation it's different if i have to guys scheduled to come in that day to clean... now what do i do with them?

The other side of the coin is a sales reason.

I see how it could streamline things, and also see how it could give you a sales advantage in some situations. But don't you think it will also seem kind of pushy and push some good customers away?

 

[Ron Musgraves]

Ron Ive never been asked to pay up front for a service at my home. Which big residential companies are you talking about?

I just ordered a Shower Door, HD...they wanted my card on file. I guarantee they authorized it.

Mike H and Chris both Get Check or Card on the phone for spring orders NOW!!

I would if I was a Residential Guy for sure.

 

[Ron Musgraves]

I see how it could streamline things, and also see how it could give you a sales advantage in some situations. But don't you think it will also seem kind of pushy and push some good customers away?

Derek, I see that Aspect. Remember DJ is not taking final payment till they are happy and the office has called them.

Keep this in mind also guys employees never have to know how much you charged miss Jones. Employees don't deal with this....employees produce work, productions goes up and so do profits.

Your office stays in tune with problems if employees are repeating mistakes. Think about how many customers you could loose by not paying attn. to that.

I'll give DJ two thumbs up for this process, I know also he copied this program from a good friend of mine and I approve this guy really knows what's up.

 

[DJ Carroll]

I see how it could streamline things, and also see how it could give you a sales advantage in some situations. But don't you think it will also seem kind of pushy and push some good customers away?

It's having a Sales Edge. Some look at it as pushy i look at it as we aren't small taters. Payment is made before service PERIOD.

DO you think Ron argued with HD? NO WAY. It's all about building a Sales Relationship with your clients.

If Value is greater than or equal to investment you make the sale.

 

[Scott D.]

Derek, I see that Aspect. Remember DJ is not taking final payment till they are happy and the office has called them.

Yes he is Ron he said it here

All residential jobs next year will be due in full at the time of agreement signing. CC or check but do in full at the time of the sale.

I understand getting a CC as a safegaurd to make sure they are serious. But not taking a check and cashing it, or charging a CC in full before the work is done.

 

[Derek Belden]

We have a cancellation policy in our paperwork that our customers sign, so if they decide to cancel day of we don't have to worry about having to pay for our employees down time out of our own pockets. We also keep CC on file to help safeguard our payment.

With that being said, the customer that is going to give trouble paying will no longer be a factor with DJ's process, and makes a lot less headache for everyone. Now I would worry about that other percentage of customers that are great to deal with, pay on time, and you never have problems with turn you away and go somewheres else, because they feel as if they are being pushed around.

Now with THAT being said, I don't fully understand DJ's process and exactly how he is going to do it. I commend him for trying something different and it probably will work for him. Just keep us posted on how it works and what kind of feedback the customers are giving you on it.

 

[innovativewash]

You guys are slowly getting off topic. I was asking Ron if he would share some sales stuff here this winter.

 

[innovativewash]

Or anyone else to that matter.

 

[Ron Musgraves]

You guys are slowly getting off topic. I was asking Ron if he would share some sales stuff here this winter.

I was thinking the same Jim , but this attitude getting the money is good. This let's you know people are serious about actually hiring you.

Sometimes sales tools are hidden. Suttle things that have large impact on total success.

Driving right now so will talk about the value of what dj is doing.

 

[Christopher]

I think if you had a sales presentation in Phoenix Ron it would be a great idea!

Keep us informed.

 

[Lou Zehnder]

:dirol::dirol::dirol::dirol: :dirol:

 

[asewell77]

if you subcontract out to a company how long should you wait to get paid before saying something? im kinda in that situation now. i called and inquired about payment and was told the computers were down for a week and at x-mas season the mail takes a few days. well its been a month. this is a big state wide company i would think they could get payment out pretty fast.

 

[Doug Rucker]

if you subcontract out to a company how long should you wait to get paid before saying something? im kinda in that situation now. io called and inquired about payment and was told the computers were down for a week and at x-mas season the mail takes a few days. well its been a month. this is a big state wide company i would think they could get payment out pretty fast.

Depends on what terms you agreed to. The "computers are down" and the "mail takes a few days" sound like put offs to me. Any state wide, well know company like that can have a check over nighted at anytime.

I did a job a few weeks back for a GC that built a local Cracker Barrell. I told to him to call me when he had check in hand and I'd come do the work. He called his office, had a check over nighted, called me when he had the check, I did the work that night, paid me the next morning.

A month is way to long to get paid, IMO. I'd be calling them everyday.

Again, you got to lay out the terms before you begin working. Very Important.

 

[Ron Musgraves]

Yes he is Ron he said it here



I understand getting a CC as a safegaurd to make sure they are serious. But not taking a check and cashing it, or charging a CC in full before the work is done.

The law here would not allow a full payment prior.