Auto to Commercial

[ultratintsouthport]

Tom that's a hell of a lot to have in bundles on a desk that you can't touch nor feel.

It only takes one ruthless developer to go down on you when you least expect it to and you've got sleepless nights forever.

120 days out is just ridiculous imho and I wouldn't accept those terms.

Devil

I agree with you 100% Dev.

7 day terms; 30 max if arranged and agreed prior, but only with a written purchase order. As the seller, it's our responsibility to set the terms of the sale upfront. I have no problem if a commercial client says "We run our accounts on 30day terms, is that ok?" but you'd rarely find one that would have the balls to say "Do it asap and I'll pay you in 4 months time..."

Always clarify the terms up front. The good clients will appreciate the structured way you do business.

[RockyDaz]

I thoroughly agree Ultra. The world has changed over the last decade, even 30 day accounts are almost a thing of the past.

Everyone has company credit cards and your retail custys do too.

If I get a plumber, electrician or just about any other tradie out these days it is pay on the day or within the next couple of days or they want to know why. Tinters should be no different.

Despite the above, most car yards and larger commercial clients will run you 30 from EOM and that's fine with me. Any longer is just bloody rude IMO.

[TomTint]

90 is vey typical and there is almost always a 10% retainage that is held. It is what it is.

[RockyDaz]

90 is vey typical and there is almost always a 10% retainage that is held. It is what it is.

Haven't come across that before Tom. What's the thinking behind the 10% retained?

I have converted some slow payers by tiering prices with early payment discounts, and dropped some as I no longer needed them.

But I know im probably not providing any revelations to you here

[TomTint]

They will hold a retainer, sometimes for the legnth of the warranty period ( 1 year ) or until the contractor has been paid in full. They hold it just in case there is any issues that need to be resolved during that time. Not all do but many. I believe the law just recently changed and they can only hold 5%, but I need to read the fine print.

[tikka]

They will hold a retainer, sometimes for the legnth of the warranty period ( 1 year ) or until the contractor has been paid in full. They hold it just in case there is any issues that need to be resolved during that time. Not all do but many. I believe the law just recently changed and they can only hold 5%, but I need to read the fine print.

all commercial glazing work has 10 % retainer for those exact reasons which is very tough for the little guy

[RockyDaz]

They will hold a retainer, sometimes for the legnth of the warranty period ( 1 year ) or until the contractor has been paid in full. They hold it just in case there is any issues that need to be resolved during that time. Not all do but many. I believe the law just recently changed and they can only hold 5%, but I need to read the fine print.

all commercial glazing work has 10 % retainer for those exact reasons which is very tough for the little guy

I haven't come across it yet in the Tint side of things in Aus yet, but ty Tom & Juzzy for the heads up...I'll be reading the fine print closely from now on. My prices may have just gone up 10% for this work lol.

[tikka]

They will hold a retainer, sometimes for the legnth of the warranty period ( 1 year ) or until the contractor has been paid in full. They hold it just in case there is any issues that need to be resolved during that time. Not all do but many. I believe the law just recently changed and they can only hold 5%, but I need to read the fine print.

all commercial glazing work has 10 % retainer for those exact reasons which is very tough for the little guy

I haven't come across it yet in the Tint side of things in Aus yet, but ty Tom & Juzzy for the heads up...I'll be reading the fine print closely from now on. My prices may have just gone up 10% for this work lol.

yeh we started to put ours up 10% but started to price ourselves out of the job.

[TintJunkie]

I haven't come across a retainer yet, but we do business with quite a few construction companies that are net 60 and 90.  Most I have ever had out was $20k, and that was earlier this year.

 

Also, we are quite the opposite in terms of pricing.  Anything under 2k sq ft, we charge the same or more than our resi customers, and only bc of the waiting period of payment.  Usually for these jobs, we don't require a deposit.  Any job between 2k-5k sq ft have a reduced psf that is similar to our resi customers, and we like to get 10%-25% deposit.  Anything over that requires at least a 25% deposit and is usually much lower psf than our resi customers, but we are paying out far more than the deposit in labor costs.

 

Anyhow, this is the reason why I continue residential work.  Im not gonna say I will always do it, but for now, it works for us.  Maybe once I get a very large project, I will reconsider doing resi at all.

[GTint]

This job had a 5% retainer for 12 months.

30 day after invoice month payment, no deposit and progress payments if required.

Either you play by their rules or someone else will.

All got paid on time and no hassles as per the contract and purchase order.

This was over 8600 sqft of film. North and South facades.

I was a very happy man 30 days after that invoice month!

The 5% didn't bother me but I shudder to think of the trades that have jobs worth 100's of 1000's $