Episode 23 - Should You Take Payment Up-Front As An Electrician?

The big question asked by so many...Should I take money up front before beginning a job?

There are a lot of opinions out there on this question, and most people tend to answer yes. Here is my method/methods that I've used. I'm still not 100% sold on which I like best but I talk about many different methods I've used to take "down-payments" or "draws" up front before beginning a job.

Think about this for a second. Say you start a job and don't collect any money up front. You go to the supply house and spend $1000 in materials, you rent a $1000 trencher, and you pay 3 guys to go to a job for a combined $60/hour. You get onsite and the customer changes his mind, and doesn't want to do this job all the sudden. You're paying around $200 in wasted wages plus you have to find something else for them to do for the day, plus the $2,000 you're out for the materials and rock-saw. You have none of their money up front to take that out of...you just ate a shit salad. Hope that diesel tastes good!

Say you charged $4,000 for the job and took 50% up front - you could have kept back the trencher money and paid for the materials and you'd be pretty close to break-even. Maybe just out some labor cost, but that's better than eating it all.

Please let me know what y'all do and if you have any suggestions. My ears are always open. Thanks for watching, please check out the Facebook Page - www.facebook.com/Journey2Master and give me a Like if you like these videos!

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