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crlawncare01
02-07-2012, 11:12 PM
So i had a lead on a menards stores i contacted the store manger about the scope of work.... we went over everything and he also told me that they pay in in store credit anyone every come across that type of payment.

mikeslawnlandscapeohio
02-07-2012, 11:18 PM
No. I wouldn't do that. They will most likely 1099 you at end of year.

KS_Grasscutter
02-08-2012, 12:41 AM
No. I wouldn't do that. They will most likely 1099 you at end of year.

Who cares? You have to report income anyway, whether you get a 1099 or not.

ashgrove landscaping
02-08-2012, 12:44 AM
Ask if that's how he gets paid for his work. Store credit is a slap in the face. Do not do it.

KS_Grasscutter
02-08-2012, 12:49 AM
Ask if that's how he gets paid for his work. Store credit is a slap in the face. Do not do it.

I'd do it, I live in a old house that needs new windows. But only if the store credit was for about 125% of the cash price.

PK Mows
02-08-2012, 01:14 AM
Cash money is just one form of payment. I dunno, if you shop there a lot, maybe it's worth it. It's just bartering. Maybe you want some really expensive BBQ set up, with the sinks and the little fridge and some expensive patio furniture. But there's no way you can justify the cash outlay. So you barter with Menards for it. You come out ahead because your actual outlay in labor and services cost you less than had it been cash. They come out ahead because their payment to you is at retail while they have their wholesale cost. What it costs them to pay you is of no concern to you, all you need worry about is what you get paid. Not a bad deal if you can use the store credit. Wonder if they sell hot tubs?

crlawncare01
02-08-2012, 01:18 AM
i thought it was kinda a slap in the face my self but on the other hand i wanna build a pole barn this year and they do sell them there...... i was thinking about putting in a bid with them and a little bit of a higher then normal price. ( because i no there products they get are CHEAP with a huge mark up) and if i do get the work i would put it towards the new pole barn lol

PK Mows
02-08-2012, 01:28 AM
I wouldn't take it as an insult, think of it as a swap, you have something of value they need, they have something of value you need. I've gotten neat stuff bartering that I wouldn't have paid cash for otherwise. Several motorcycles, couple cars, truckload of steel, lots of other stuff over the years. And the Wife couldn't complain that I went out and bought any of it. Shoot, thinking about it, I may scout out some independent gas stations and see if I can barter for gas.

OneLineAtATime
02-08-2012, 06:15 AM
Ask if that's how he gets paid for his work. Store credit is a slap in the face. Do not do it.

2nd That, are you kidding me??? Dose he pay Menards AEP bill that way??

What because we are lowlifes who cut grass for a living we don't get paid in the form of money?

Wow, well glad i log on right quick, got somthin to talk about with the guys when they get here at the shop. Got some salt throw today:clapping:

Glenn Lawn Care
02-08-2012, 07:38 AM
That sounds like a bad idea! Do not do it!

mikeslawnlandscapeohio
02-08-2012, 07:52 AM
Who cares? You have to report income anyway, whether you get a 1099 or not.

If they 1099 you for the amount of store credit, you are getting screwed. You will be paying tax on items you buy with credit, you will have to pay the sales tax for menards on the 1099 and you will have to pay your income tax on 1099. Bad deal.

jetta
02-08-2012, 08:44 AM
all work ive done for menards is paid by check. they are the slowest to pay you will ever see, but you will be paid.

djagusch
02-08-2012, 10:17 AM
If they 1099 you for the amount of store credit, you are getting screwed. You will be paying tax on items you buy with credit, you will have to pay the sales tax for menards on the 1099 and you will have to pay your income tax on 1099. Bad deal.

It doesn't really matter on the 1099 and sales tax.

If you normally spend 4k at the store per year. You are paying the sales tax so its a non issue.

Let's just say services for the summer add up to $4k. They pay you in cash or store credit you get a 1099 for 4k.

The key thing is can your buisness afford not having the cash. If this is your largest account and have 10 other resi's it will kill you.

If its 3% of your sales and a minor account than it will work out fine.
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mikeslawnlandscapeohio
02-08-2012, 10:28 AM
Nevermind. Some people don't get it. In Ohio you have to pay tax on all sales except for resale. Plus menards is making out like a bandit. If you get credit for store for 4000, theay only have 2000-3000 in that 4000.

DA Quality Lawn & YS
02-08-2012, 10:28 AM
If their first offer was to pay you in store credit, yes, it seems like a rubber hose job.

djagusch
02-08-2012, 11:02 AM
Nevermind. Some people don't get it. In Ohio you have to pay tax on all sales except for resale. Plus menards is making out like a bandit. If you get credit for store for 4000, theay only have 2000-3000 in that 4000.
Yes they are but, you are also getting the credit at your cost also.

If you normally spend 4k in cash is it any different? Last time I checked they don't give discounts for cash. You can buy sales items with in store credit. The only way you miss out on something is they have a menards big card special or the small year end rebate on the card, which guess what is by in store credit.
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djagusch
02-08-2012, 11:07 AM
If their first offer was to pay you in store credit, yes, it seems like a rubber hose job.

I disagree unless you don't spend the contract amount there in the contract period.

Ask any accountant if bartering services at normal rates is a bad thing. Mine says if you normally spend the amount it is a good deal for both parties.
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mikeslawnlandscapeohio
02-08-2012, 11:15 AM
Great for menards, not so for contractor. Iam a financial advisory and i don't recommend any bartering. My 2 cents.

djagusch
02-08-2012, 11:56 AM
Great for menards, not so for contractor. Iam a financial advisory and i don't recommend any bartering. My 2 cents.

Please explain why.

When you are bartering retail to retail pricing, a product/service you already spend the amount of money or more, and it is a low percentage of your overall sales.

What is the difference on my balance sheet year end?

BestImpressions99
02-08-2012, 12:29 PM
Yeah, if you take this job for store credit YOU are the rubber hose.