The City of Benicia calls me and orders a set of digital decals for thier new hard hats....with probable future work...(I'm all excited)
I get the order, half up front for the work, man comes to pick up the work, he'll get me the balance asap...
OK, they cut checks every Thursday....he calls today (responding to my message of where's my check?)
Due to ...blah blah...the person who signsthe checks...being on vacation (is vacation the most common excuse in the world or what?)...he..blah blah blah...wasn't able to get the check cut...blah blah blah....so I should get my check by next Saturday..blah blah blah....
*sigh*
OK, in looking back on the whole thing, I probably should have told him on the phone he needs to have check in hand to pick up this order (duh!!) instead, I'm just so trusting....
OIY!! Did I just answer my own question??
OK...feel free to share some tips here.
A
Posted by Mike Pipes (Member # 1573) on :
Yeah Rain, you just answered yer own question.
When the guy came by to pick up the decals, he shoulda returned to the office empty-handed.
You don't get to walk outta the grocery store with food in-hand without paying for it, do ya? well, 'cept for the free samples..
Man, it must stink to be city employees there, not getting their paychecks just because the person that writes the checks is out of town. =| It's a pretty lame excuse, I've gotten that one too.
"Sorry, I told your guy on the phone last week the balance must be taken care of before the job leaves my office."
You ever wonder why City and Government projects seem to have such inflated prices? It's because their "contractors" have to put up with that kinda garbage all the time.
Posted by Mark Fair Signs (Member # 289) on :
HEY ADRIENNE! (in my best southern rocky balboa voice!LOL)
seems you did answer your own question. what i want to know is, how in the heck did you get a deposit for a job from the city???
i have done a few small jobs with the city of montgomery and have never been able to get a deposit, the same goes for state government as well. i know when i deal with state and local government, get ready to wait for the money.
but they always pay... eventually LOL
mark
Posted by VICTORGEORGIOU (Member # 474) on :
Greetings, Adrienne... Mark's pretty much on track. I've never been stiffed by a government agency, but they sure can be pokey, and they don't like to pay C.O.D.
Here in Danville, they pay in cycles, and there is an approval process that must be followed. If you miss the deadline for any reason, including the buyer not turning in his paperwork on time, you cool your heels for the next payment cycle.
Federal agencies have credit cards now, but I don't think they will use them for deposits. They will pay by card at time of delivery, however.
If you can handle the cash flow, governments are good business. I like working with them. Vic G
Posted by Si Allen (Member # 420) on :
When dealing with ANY government agency....add a hefty interest percentage to your estimate! Then be sure that you have a Purchase Order Number!
Like Victor pointed out, if you miss a pay cycle, you have to wait for the next one...which usually instead of 90 days, becomes be 6 months!
(Most cities and agencies pay when the recieve the interest on their CDs and Bonds.)
Posted by Dave Grundy (Member # 103) on :
I agree with Mark and Victor...Government jobs might not be immediate cash flow but they ARE money in the bank. Usually not any "haggling" on price either.
Don't bug them and you'll get more business from them....bug them and it could be the end of a lucrative business connection.
ALSO..How DID you get a deposit in the first place?
Posted by Mike Languein (Member # 319) on :
Been there and done that - TWICE! Once with City College in L.A. and once with Disney. Both times I explained to them I was flat broke and needed some front money to get materials, etc. (true) and they gave me a deposit. Ah, but THEN came the rub! After several months and many, many phone calls I FINALLY got the checks. Disney pays A LOT to their outside vendors. I never worked for the school again.
Posted by AdrienneMorgan (Member # 1046) on :
Thanks...well...and this was on Kristi Percell's advice...
I told him as soon as I can get a deposit from them I could get the order in....
I failed to make it clear I would need the same arrangment for delivery (doh!!!!!)
A
[ October 19, 2001: Message edited by: AdrienneMorgan ]
Posted by Donna in BC (Member # 130) on :
City accounts are the safest bet. I wouldn't worry about this one. As long as you have a purchase order, they'll pay.
I have special customers on accounts like the city. If I know the money is there, I look at it like a Christmas gift in the mail... money comes later, feels like a bonus. (major mind game player LOL)
You ARE in charge of your terms, and if you make them clear, and they don't wish to comply, then you have the option to turn down the work.
I'm flexible with red tape terms. If I want their biz, I play abit by their rules as well as my own. Naturally, this is all said and done on a signed contract with a PO # attached.
Posted by AdrienneMorgan (Member # 1046) on :
Yeah, you are right...I'm not going to worry about it, they are real happy with the decals..and I am not going to worry about it.
I just want to try to remember to make all the terms clear, even though it is on my invoice.
It's about time I bonded with this city, I'm looking forward to doing more work with them.
A
Posted by Rick Sacks (Member # 379) on :
A, just forget about it and go on with being productive. The money will come. Mail the invoice rather than handing it to a delivery person.
Posted by jimmy chatham (Member # 525) on :
I deal with the cities and surrounding counties all the time without a deposit. i simply put on the invoice if paid by this date x amount of dollars. after this date x amout of dollars. the after this date has 15% added on.
only one has gone past the date and i insisted they pay the extra. only happened once.
Posted by Joe Endicott (Member # 628) on :
I agree with Rick. Mail the bill, don't hand it to the runner. They WILL lose it (I think they get a bonus if they do) Mail it and follow-up with a phone call to make sure the recieved it. When they tell you they haven't (which they will) Get their fax number and get it to them that way. And remember to keep track of who you spoke to.
The problem I have is when you have an installation scheduled, you go out to install and the customer doesn't meet you, as specified, to pay the balance. What do you do. Go back to the shop with the sign and charge them extra for missing an appt? Or put it up and hope you can catch up with them?
[ October 20, 2001: Message edited by: Joe Endicott ]
Posted by RonniesTintSigns (Member # 1669) on :
And the WINNER IS MIKE PIPES !!!!!! Ever wonder why stores don't let you walk out without paying? Of course you don't! #105,560 & counting that I know of.I've just about scratched a hole in my head.
Posted by jmathel (Member # 526) on :
Adrienne, government agencies always get around to paying sooner or later unless there was a problem with the job. It's just part of doing business with them. When I was still actively operating a commercial shop, I did a lot of work for them and usually had to wait. Like Si says, you need to figure waiting for your money into the price of your job. In my experience the Army Corps of Engineers holds the world's record of 4 months, but I had figured 15% in my total bid for just that contingency.
Posted by Donna in BC (Member # 130) on :
Ronnie's Tint Signs, I then ask you this.
Knowing a certain city account may take 30 days to pay an invoice, would you turn down the work ahead of time knowing this fact,even if the work happens to be very profitable, no squabbling on price, and you know they'll pay, no if ands or buts?
If you do, that's definately your call to make. However I for one wouldn't turn down the work. This makes it the right call for ME.
We are all the winners of our own biz. I actually welcome city accounts. I love their large projects.
Posted by RonniesTintSigns (Member # 1669) on :
Well, Donna, This is a city of 500,000+ including surrounding counties. I know some don't have this luxury so now I understand why some take the jobs & another good reason Augusta is so large & with so many sign shops our local government are accustom to getting the signs, printed decals so cheap or what I call free. Like our local Sheriff's Dept. they get large printed badges on reflective vinyl for $25.00 each. If I were to take the job I would lose money because of having to turn down jobs that I'm getting paid good money to do. So in this town, county & city business sucks. No money in it. I guess I take for granted being in a large town where there are so many people, business is booming 11 months out of the year October being the only slower month. So I will not say anyone is right or wrong again for I don't know everyone's situation.
[ October 21, 2001: Message edited by: RonniesTintSigns ]
