coach blog

FREDERICK PEARCE's blog
... Business Mentor and Personal Coach

   " Building businesses, building lives, building wealth."

Frederick speaks to the constant problem of contractors getting paid late. Frederick coaches individuals and small business owners to build a life of purpose and prosperity. This Coach Blog supports that endeavor.
HOME
About
In Action
Business
Life
Wealth
General

 Frederick Pearce - Businessman, life coach, mentor, speaker, author.
Frederick in the News

Coach blog, coaching blog
coach log homeHOME
Letter from Frederick


Building
Businesses
Building Businesses

Building
Lives
Playing a Bigger Game

Building
Wealth
Building Wealth


Frederick
in action
Life Coach
Frederick on LinkedIn
Frederick on Facebook
Life Coach articlesFrederick on Hub Pages
Frederick(Spider) at SBF


General
Mentoring/ Coaching?
Mentoring Programs
Coaching Articles
So, Who is Frederick Pearce, really?

Incorporate Online for as little as $149!
business mentor blog, personal coach blog


WEBLOG Houston, Texas: April 11th, 2010: A recent discussion about how to deal with clients who pay late, led to some pointless suggestions. It is easy to lose sight of the problem and get further from a solution as frustration builds.
There are only three ways for contractors to get paid:
.. 1. Pre-payment — Some types of businesses can ask for and get pre-payment, payment with order, payment on commencement, or partial up-front payment in the form of a deposit or "to purchase materials" - roofing contractors, for example.
.. 2. Payment on completion — Some businesses can ask for, and get, payment immediately the work is finished - auto repair, for example.
.. 3. Payment some time after completion — Most everyone else who hasn't established either of the above two methods of doing business.
The concept of charging interest for late payment is pointless and worse than useless. Even a 12% interest rate on $5,000 for 60 days is only $100. Asking for an extra $100 after the event is likely to annoy the payer to your detriment and still not pay for your time chasing the payment week after week.
When preparing bids for work, one should include all the costs of the job, including additional financial carrying costs, if those can be expected. If that makes you uncompetitive, then you must find ways to be more efficient. Ignoring known costs to make a bid competitive is the mark of an amateur and a recipe for business failure.
Alternatively, build your business around a different payment method - like asking for a deposit or prepayment.

***

Add your comment
(Click then scroll down.)

    Previous blog posts >>>


Liked this? Share it with your friends.
Bookmark and Share



What can you do right now to become
an outrageous success?
Outrageous Success continued ....

SELF IMPROVEMENT

SO, WHO WANTS TO BE A MILLIONAIRE?
- How to get from Working Class to Wealthy.

KEEP YOUR EYES ON THE PRIZE
- An Exercise in Life Purpose, Random Acts of Kindness and Generosity

TAKE CHARGE - GET RESULTS : A simple approach to the Principles of Success.

Join our mailing list for the Outrageous Success Newsletter
Your Name:
Your e-Mail:
Your City/State:
Subscribe
Unsubscribe
Hosting by YMLP.com

 

 
  © 2008 Pearman Cooperation Alliance of Houston, Texas (PUBLISHERS) www.FrederickPearce.com