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pete scalia
10-27-2007, 11:01 PM
we are coming to the end of our season soon. Does anyone else push hard to sell jobs now for the spring (in winter climates)? The way it works is this. If they sign now and make a 10 percent deposit they will be immune from any price increases in labor and materials which usually occur every Jan 1st. Typically my costs are rising on a 5-7 percent annual basis. It's 10K if you sign now $!0,700 if you wait for spring which is when everyone wants work and then your job is scheduled on an availability basis. You may be thinking this is not a good deal for you (contractor) but it's great since you have a cash flow during hibernation, a guaranteed project once the ground thaws so you can make early bird volume purchases with discounted prices from your distributor. Plus you have not allowed your competition to get their hooks in them come spring. In addition it gives you bragging rights at AOLP. Instead of lying every year about how much work you have for the coming yr you can be honest and say with certainty that you have 7 jobs lined up when you put you first shovel in the ground on March 15th.
It really gives you a good confidence level and positive momentum going into the new year. It's a beautiful thing!

INTEGRA Bespoke Lighting
10-28-2007, 09:33 AM
I have been doing that since my inception. Exept I make those downpayment cheques cashable on January 2nd and we don't get a shovel in the ground here until around April 15th or so.

As for price increases.... this year I am expecting a pretty good price decrease. Given that our dollar is now trading around 1.04 US and last year it was around 0.92... I am expecing my materials to decrease around 7 to 10%. Yes, I will be passing those savings along to my clients.

Have a great day.

pete scalia
10-28-2007, 11:13 AM
Exept I make those downpayment cheques cashable on January 2nd- Why?

pete scalia
10-28-2007, 11:16 AM
Exept I make those downpayment cheques cashable on January 2nd- Why?

For purposes of taxation?

"Taxation without representation is tyranny".- John Adams

INTEGRA Bespoke Lighting
10-28-2007, 12:06 PM
Exept I make those downpayment cheques cashable on January 2nd- Why?

Carrying over open contracts and invoices across a year end creates un-necessary book keeping. K.I.S.S.

Best to have work that will be performed and completed in 2008, contracted, booked and paid for in 2008.

Have a great day.

NightScenes
10-28-2007, 02:43 PM
I'm fortunate to not have to deal with these issues in the south. We can install year 'round.