I don't know if this is a legitimate request or if I should shake my head and maybe laugh a little bit.
I talked with a potential client earlier who is looking for a flood certificate.?ÿ She seemed frustrated about not getting any other surveyors to return her calls.?ÿ I wanted to say yeah, that's because guys don't like doing these things even in bad times...?ÿ Hah
Anyway, after a brief chat I threw out a number that is maybe a bit on the higher end, but I told her I could be out there in a few days which she acknowledged is valuable.?ÿ She wanted to get one more quote for peace of mind and I was like sure no problem and ended the call.?ÿ She ended up calling back to ask if I would do a cash discount.
My initial reaction was no, I'm not selling stuffed animals at a kiosk in the mall.?ÿ But the more I thought about it, I think I actually have got cash discounts on medical services before, so maybe the request wasn't so unusual.
Have any of you guys done a cash discount??ÿ Or would you?
Nope.?ÿ Don't plan to start.?ÿ Would not let this practice get out to the general public as it puts us in the same category as used car salesmen and horse traders.?ÿ The service provided is worth what I determine to be a fair amount.?ÿ End of discussion.
It depends on what your operation is.?ÿ Is it worth it though??ÿ Nobody gets a discount under my watch and I want a check or credit card.?ÿ Valued employees and direct relatives get the work for free if it's a title survey or other minor item, otherwise, the would get a discount if there was engineering involved or anything thatmight get complicated.
My policy, as it relates tothe general public, is 50% retainer withthe balance paid before the final work is released.?ÿ I would be very leery of any doctor or lawyer that would accept a deposit for cash.?ÿ Giving a cash discount is contrary to the actual value of your work. Just remember,the?ÿ tax man is always looking over your shoulder, not to mention that documentation is key is something goes south.
If everyone shortcuts the tax system then rates go up to pay for same public services or would you prefer more potholes in your roads is my answer to that type of client.
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If people don't like paying tax then get elected and change the rules if they think that would make for a better society.
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cash discount or direct pay for not using your health insurance is wholly different. When medical practice does or allows that that, it's an indication that they e escaped the movement of the insurance companies locking them into their model.
Discount or reduced fees come after the relationship is?ÿ established and they are consistently bringing in more revenue and new clients.
besides.
when you start dropping those 10k plus fat cash deposits the feds are going to be up yer keister with a scope. ?????ÿ
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I accept ACH payments and credit cards through Quickbooks; as well as cash, either greenbacks or checks. ACH payments are accepted at the quoted price, even though Quickbooks charges me 1% up to $10 per Transaction. If a client wants to pay by credit card, I pass through the service charge, about 3.5%. If they pay me by cash or check, I save 1%, up to $10 per transaction.
I would generally decline to offer any kind of discount, but if a client pushed me on it, I would offer a discount of 1% up to $10, as that is all I am saving by them paying cash/check. Not worth mentioning generally.
A check for any amount is no issue when deposited.?ÿ Only ignorant people intentionally make huge cash deposits that will get them checked out quickly.?ÿ Having accounts with four different banks, in different cities, alleviates that concern for me completely.
A fellow I have done survey work for in the past operates a salvage business where his standard payment is cold, hard cash.?ÿ He supposedly had over $400,000 in his safe when his office was broken into one night.?ÿ The clear-thinking looters used a cutting torch to finally get a small hole opened.?ÿ Attempting to enlarge the hole set the cash on fire, turning it to ashes before they gave up.?ÿ No one really knows how much cash was in the safe.
Cash is something of a fiction these days, People have it, sure, usually for bad reasons. I especially question when people want to be at the front of the schedule because they offer cash. I can deposit a check using my credit union app faster than I can deposit the cash. The only advantage being that the cash deprives the bank of the opportunity to hold the deposit and play the stock market at their tenfold rate for a few days. Gold, silver, agricultural commodities notwithstanding.
When medical practice does or allows that that, it's an indication that they e escaped the movement of the insurance companies locking them into their model.
Actually, yeah this is probably what was going on.
She needs a lesson in negotiating.?ÿ She's already told you she's desperate, and by calling you back after telling you she's going to try someone else, she's apparently even more desperate.?ÿ And now she's haggling for a discount?
My fee is non-negotiable; but you are welcome to pay with cash, if you'd like.
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Cash is wonderful.?ÿ We need to extract ourselves from a world where the world insists on being able to identifying our every move.
The idea of offering a discount for quick payment is so common that it has a name. That is "Trade Credit".?ÿ?ÿ
From your side of the equation the discounted rate is your real fee, the 30 day rate is an extra 2%. The back end of terms like this is to charge a percent or two interest for each additional month after 30 days. It is a common business practice.?ÿ?ÿ
No survey outfit I have worked for has ever done this, but it is common amongst various subcontractors on a construction job. It is also common among tradesmen to get a significant down payment before starting a job.?ÿ ?ÿI do not know why surveyors don't. These are perfectly reasonable and common business practices.?ÿ
