Got a situation, need advice

snakeblitz33

Well-Known Member
Hello members,
I've been building aquarium stands and canopies for a little while now and now I seem to have a small problem. I have built/refinished a large 8x2 cabinet for a client of mine and I had it done three weeks ago. I called the man and let him know that it was done and everything was ready to be delivered and told him how much it was going to cost. Well, the man has put off delivery and payment for the last three weeks. I have other projects that I have to build in the space that this cabinet is taking up. Should I start charging the guy $10 a day or so until he gets it delivered or tell him he has 30 days from the day that I told him it was ready before I sell it to recover my losses...
I don't know what to do. I need to get rid of this stand, and I would like a happy customer at the same time.
 

slice

Active Member
I take from your post that you do not quote before taking the order. Also that you do not get a deposit towards the final cost. I would think after building a few stands that you would have an idea of what your material cost % runs.
A standard stand should not be difficult to knock out a BOM (Bill of Materials), then figure the final cost to be say, 50% material cost (example: material for this stand is $285, so the job at a 50% MC is $570 selling price). Go through your
past jobs and see what your average MC% is, then use that to quote BEFORE taking orders. Require a 50% deposit.
That does 2 things, 1) if someone doesn't take delivery, at least your material is paid for and 2) it weeds out those who can't really afford the stand.
Sounds like this guy got a case of sticker shock and perhaps should have been vetted out before taking the order. Hard to believe you didn't tell him the cost until the thing was finished.....
 

snakeblitz33

Well-Known Member
Quote:
Originally Posted by Slice http:///t/392875/got-a-situation-need-advice#post_3491380
I take from your post that you do not quote before taking the order. Also that you do not get a deposit towards the final cost. I would think after building a few stands that you would have an idea of what your material cost % runs.
A standard stand should not be difficult to knock out a BOM (Bill of Materials), then figure the final cost to be say, 50% material cost (example: material for this stand is $285, so the job at a 50% MC is $570 selling price). Go through your
past jobs and see what your average MC% is, then use that to quote BEFORE taking orders. Require a 50% deposit.
That does 2 things, 1) if someone doesn't take delivery, at least your material is paid for and 2) it weeds out those who can't really afford the stand.
Sounds like this guy got a case of sticker shock and perhaps should have been vetted out before taking the order. Hard to believe you didn't tell him the cost until the thing was finished.....
Nope, I did get a deposit for the materials and it did cost me his deposit for materials ($200). The stand has not cost me anything but labor at this point. I'm not in the hole in this project - I just need it out of my way and I need to get paid for my labor.
I do know how much materials and everything costs, and that is what I charged and that is what I got. He paid me up front and I did give him a quote for how many hours of labor at what hourly rate he was going to pay BEFORE I even picked the stand up. He agreed to it. I did not to over my quoted labor cost, ... in fact, I did go over on my end, but didn't charge him because I made a small mistake on the doors and had to re-finish it ... but that's besides the point. He knew how much it cost to get it done and that is how much I charged him.
 

slice

Active Member
Good, glad to hear you structured it that way.
I think a daily charge to hold it up to 30 days is not unreasonable, after 30 days it is up for sale on CL or where ever.
The guy then gets his deposit back less the storage fee.
 

beth

Administrator
Staff member
Did you let him know that you need to go ahead a move it out of your workspace? Has he explained the delay at all?
 

dragonzim

Active Member
Quote:
Originally Posted by Slice http:///t/392875/got-a-situation-need-advice#post_3491387
Good, glad to hear you structured it that way.
I think a daily charge to hold it up to 30 days is not unreasonable, after 30 days it is up for sale on CL or where ever.
The guy then gets his deposit back less the storage fee.
I would not give the deposit back. You used that money to buy materials for a job he ordered. If you have to refund his deposit you are out that money and what if you can't sell the stand at that point?
 

snakeblitz33

Well-Known Member
Quote:
Originally Posted by Beth http:///t/392875/got-a-situation-need-advice#post_3491388
Did you let him know that you need to go ahead a move it out of your workspace? Has he explained the delay at all?
I let him know that last week... that I have other projects that I need to take care of this week. I texted him this morning again to make sure that today was the day to deliver and so far... no response. He has been saying that he has "family problems" and doesn't offer to explain it at all. He has also said that he has been out of town off and on... seemingly only on the days that I can deliver the stand.
Quote:
Originally Posted by DragonZim
http:///t/392875/got-a-situation-need-advice#post_3491389
I would not give the deposit back. You used that money to buy materials for a job he ordered. If you have to refund his deposit you are out that money and what if you can't sell the stand at that point?
I don't know why I should either. I can only charge on CL for the amount that I am owed - since I am a service, I can't turn a profit on stuff that is left behind, I can only sell it at cost - according to Louisiana law. I wouldn't refund money without having the stand sold either. At that point, it would only be worth getting it out of my work space so that I can turn out more projects.
 

darthtang aw

Active Member
Tell him has 10 days to pick it up or it will be sold. No refund on the deposit.
This is business.
Darth (unless of course his mother died) Tang
 

reefraff

Active Member
Quote:
Originally Posted by SnakeBlitz33 http:///t/392875/got-a-situation-need-advice#post_3491391
I let him know that last week... that I have other projects that I need to take care of this week. I texted him this morning again to make sure that today was the day to deliver and so far... no response. He has been saying that he has "family problems" and doesn't offer to explain it at all. He has also said that he has been out of town off and on... seemingly only on the days that I can deliver the stand.
I don't know why I should either. I can only charge on CL for the amount that I am owed - since I am a service, I can't turn a profit on stuff that is left behind, I can only sell it at cost - according to Louisiana law. I wouldn't refund money without having the stand sold either. At that point, it would only be worth getting it out of my work space so that I can turn out more projects.
So sell the stand to your wife at cost and let her turn the profit :)
 

gemmy

Active Member
I would give him a set date of at least 7 business days and if he does not get by then sell it. Unless it is written in the contract, you may have difficulty collecting a storage fee that was not established before the deal transpired.
 

beth

Administrator
Staff member
Exactly, give him a week. Make it clear no return of funds. Forget the storage rental idea.
 

snakeblitz33

Well-Known Member
Yeah, so...
I just got in contact with the dude. woohoo.
He said that he wasn't able to pay for it until the 13th. So, I will deliver it on the 13th. In the mean time, I will have to start building another project with that other stand in the way. Hopefully it won't be too difficult.
I'm very excited to finally get this stand out of the way - and I showed my client a few pictures of the stand and he loved it. In fact, he showed one of his friends and now his friend wants a 135g stand (72.5x18.5") and canopy built for his new tank. Woohoo! Lets just hope this new client has money. lol
 
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