Cash Flow

Discussion in 'Managing Your Business' started by RealKidJoker, Mar 16, 2015.

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  1. RealKidJoker

    RealKidJoker Active Member
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    I was round looking at a women's solar panels that she had messages me about. She only has 9 but it turns out they're going to be un-reachable.

    Anyway we got talking and she happens to be a financial coach. She was offering me loads of tips and one was a great idea.

    For large twice yearly jobs such as solar panels on domestic properties, she suggested taking payments from customers on a monthly basis rather than two lump sums when the job is finished.

    Say each clean is worth £60, 2 cleans a year would be £120 so this customer would pay you £10 per month and in return you'd clean their panels twice a year. This would mean you'd have a constant cash flow coming in and it might be more appealing to the customer.

    Wouldn't work with windows as they're monthly anyway. Just wondering if Solar Steve has maybe thought of this as he's obviously built up a significant client base with regards to solar panels.
     
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  2. Smurf

    Smurf Banned
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    I'm no finacial coach but not being funny if ppl can't afford to pay you to do a small job for say £60 then they are not worth having surely?

    If you are also that worried about cash flow you need also need to build up your client base.
     
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  3. Smurf

    Smurf Banned
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    The types that would want to spread out the cost of say £120 cleaning bill over a year is not the customers I would want quite frankly.
     
  4. RealKidJoker

    RealKidJoker Active Member
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    No I'm not worried, just wondering if anyone did this as she said it's common with plumbers - pay X amount per month and get X amount of boiler checks per year.
     
  5. Smurf

    Smurf Banned
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    I'm not a plumber I'm a cleaner so don't rip ppl off so much :D
     
  6. Smurf

    Smurf Banned
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  7. Declan Mc

    Declan Mc Member
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    I think there is merit in this. Perhaps the OP was just using the $60 figure as an example - I agree it should sound alarm bells if a customer wanted to spread such a low cost over the course of a year. I know that a lot of big businesses are switching to the subscription model - it means predictable revenues and more loyal customers.
     
  8. RealKidJoker

    RealKidJoker Active Member
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    Yeah I just used the £60 as an example for easiness to work out :whistle:

    Say it was 2 cleans (solar panels, driveways etc) at £200 each. The customer would have a direct debit set up for £33 approx per month in return for 2 cleans per year as opposed to forgetting for 6 months and getting hit for a £200 bill, or £500 a time in Smurf's case :ninja::rolleyes:
     
  9. TolishAPurd

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    I can see it working for some jobs, but I can't picture a job I do where this would be a good idea. I can't imagine people want to see £30 or whatever coming out of there account for something that happened 6 months ago, or due again in 6 months.

    A big worry for me would be people that run into financial difficulty, that then decide to cut the direct debit. There's a lot to be said for getting the payment in one lump straight away on the completion of the job.
     
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  10. Smurf

    Smurf Banned
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    They call me I don't call them so obviously they can afford it or they would not want the work do in the first place surely?...How would you like to pay.. by instalments I don't think so somehow :D

     
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