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why is cash, worth more than a check?

Discussion in 'Lawn Mowing' started by bobbygedd, Sep 12, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    i'm confused. i hear guys talk about bidding jobs, and giving cash options, with discounts. example: they quote a lawncut at $30 per, or $27 cash. a landscape job at $3,000, or, $2700 cash. i don't get it. is cash worth more than a check?
  2. ProLawns

    ProLawns LawnSite Senior Member
    Posts: 476

    With cash there's no waiting for the check to clear but I would imagine the real reason is that some guys don't claim their cash as income so they can give a lower bid if the payment is in cash and still net the same amount. Not legal.
  3. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812

    Money has worth when it gets into your hands. A check is not worth spit till it clears. If it does.

  4. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Posts: 1,155

    It's probably so they can just pocket the money and not pay any taxes on it. However, many businesses give cash discounts on immediate payment vs regular billing. I've never seen a cash vs check discount though, at least not from a reputable business.
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Cash is getting deep-sixed for sure.
  6. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Not reporting cash is fine until the IRS asks how you can afford a $2,000 a month mortgage and a $50,000 truck on income of $20,000 a year. I know a guy who used to work for himself. The IRS told him to get a job working for a legitimate company or he was looking at Levenworth. Now they yank $300 a week for the next 10 years.
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I hear Kansas is lovely this time of the year...LOL
  8. lwcmattlifter

    lwcmattlifter LawnSite Senior Member
    from NC
    Posts: 859

    Some people just have to learn the hard way. Sucks to be him.
  9. Scotts' Yard Care

    Scotts' Yard Care LawnSite Senior Member
    Posts: 343

    What is this cash you speak of? :D I can't remember the last time anyone gave us green dollar bills. It's so funny to hear people talk about how they hate a cashless society and then don't have a dollar bill in their pocket to pay for a cup of coffee. I heard a guy complain that he had a customer write a check at his store for a $.25 item a few years back.
  10. cborden

    cborden LawnSite Member
    from 46140
    Posts: 177

    Cash doesn't bounce. You can't "stop payment" on cash and like everyone has said, lots of people like to not report cash. I do all billing on a monthly basis and take checks only. I've been lucky and never had any problems with people paying by check.

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