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Posted: Thu Mar 22, 2012 7:06 pm
by rab1
no one has loads of cash dan, thats why we`re all still working mate. :;):
Posted: Fri Mar 23, 2012 6:17 am
by mickavalon
Dan,I'm pretty much the same, been whittling away at my overdraft, 7k, for the last year or so, and I'd like it to be not there, but it is handy for the times the cash isn't flowing fast enough or an emergency. I would have preferred not to have it, but probably 90% of business's have one so it's that or the dragons den with me new Skip filling/auto wheel-barrow/excavator/tea machine and Radio combo, watch this space!!
Posted: Fri Mar 23, 2012 8:24 am
by local patios and driveway
Im same as giles, i dont borrow money, paid my mortgage off this year after 3 moves and 2 extensions. That is a big drain on the resources gone. Now im concentrating on building both companies for the kids futures. Not had a pot to pee in since i was 17, the thought of having a few quid to actually spend is exciting but i doubt i could bear to spend any of it after such a struggle
Posted: Fri Mar 23, 2012 6:12 pm
by DNgroundworks
How old are you LPAD?
Im not scared of borrowing money if a job came up that warranted a brand new 13t hitachi for 12 months i wouldnt think twice about buying one on hp
Posted: Fri Mar 23, 2012 7:46 pm
by local patios and driveway
Im 33, feel 53 though
Posted: Fri Mar 23, 2012 9:21 pm
by bobbi o
We're invoicing about 100k a month since sept last year,we've had a great winter. looks good on paper-about 110k pre-tax profit in these 6 months. on paper...
reality is cash flow is a major problem,we're struggling month on month to pay the bills,delaying on paying the suppliers till the cash comes in. these figures include for 20k of bad debtors. cash is king,its just getting your hands on the stuff within 30 days of invoice.
we're lucky in that we have cash in the bank,otherwise i dont know how we could survive in the current climate.
Posted: Fri Mar 23, 2012 10:42 pm
by Kuts
I had to turn down a 75k job a few weeks ago as they work on 120 days payment.
Can't get my head round how they think this is acceptable in this climate.
It was only 2 weeks work but then I'd be stuffed for credit for the other 3 or so months.
Posted: Fri Mar 23, 2012 10:49 pm
by DNgroundworks
Thats excatly my problem, my auntie owns conlon construction and i have another contact within carefoots plc, but they say i have to agree to the same payment terms as other sub-contractors, which is fair enough, i just cant bank roll a job for a month then wait another two months for payments whilst bank rolling another two jobs, i just cant do it.
Posted: Fri Mar 23, 2012 11:17 pm
by Kuts
It's piss take, must have taken me 10hrs+ working out the drainage diversions/services/tar and concrete specs.
I'm passing on most new building site and commercial work now, not worth the effort.
Posted: Fri Mar 23, 2012 11:26 pm
by lutonlagerlout
we have done small works for PLCs on 120 days but it gets priced high
i did a 200 by 20 resin mortar patch and billed a certain PLC £400 +vat
also laid 70 class b s for £600 +vat
the added profit makes up for the 3 month wait
:;):
retention is a PITA for us right now as we have 25k laying waiting for 6 month retention periods to fall into place,but we cannot tender without it
LLL
Posted: Sat Mar 24, 2012 10:31 am
by Mikey_C
on the high price long payment terms, use an invoicing company adding the invoicing companies costs to the bill + as mr lout says a good bit of profit. most PLC's have no real idea of what things cost, and don't much care they will be making a big profit as well.
Posted: Sat Mar 24, 2012 3:07 pm
by DNgroundworks
As in invoice factoring Mikey?
Posted: Mon Mar 26, 2012 9:39 pm
by Mikey_C
Yes, having looked up factoring. Just whack their fees or even the whole 10% on top of the price you have come up with, if you get the busy no lose, if you don't you have only wasted your time doing the quote, which kuts case he had already done. if it was me and I felt comfortable I could do the work I price as normal then chuck on 25% to cover the factoring and the whoops factory, then see if I get the business, you would probably be surprised!!
Posted: Mon Mar 26, 2012 10:56 pm
by lutonlagerlout
my missus was paying about 1.5% per week for factoring with lombard,but her wage bill could often be 60k per week
of course all costs get added in to the final bill
nearly all car dealers factor the cars on their forecourt
thats why they need to sell something every week
LLL
Posted: Mon Mar 26, 2012 11:21 pm
by GB_Groundworks
we go out at £450 a day each labour only when doing the concrete for the nhs jobs, to the 5th sub contractor in the line so we hit them up and they pay fairly promptly then they deal with all the 120 day crap...