"Here, try this one."

[Robert Armerding]

I distinctly remember working at the sales counter at Product Sign Supplies in San Jose CA and watching as a sign maker would pull out a stack of credit cards, sort through them, hand me one of them and say, “Here, try this one.” I would try it and hand it back, “No, it did not go through.” Then that person would hand me another one. This might go on for several attempts. Finally, one would work.

Two questions:

1. Is that still going on today?
   
2. What if I came up with a workable solution, would there be any interest in hearing about it?

If there is an interest, I am open to putting my solution right here. If there is no interest, no problem.

 

[a77]

Spit it out man!

 

[dypinc]

I see you are trying another one.

 

[Gino]

Speak up. Post it up, man.

I don't ever remember NOT having an account with any of my suppliers and almost everything was always delivered, so I don't know what kinda sign people were coming in and not having any money.at the counter.

 

[Reveal1]

Cash

 

[White Haus]

The only workable solution is dealing with clients that have money.... IMHO. I can never imagine going to pay for something and A) Not knowing if I have money on a card and B) Having so many maxed out cards that I can't remember which one has monies left. But maybe I'm just responsible with my/my company's money, who knows.

If someone walked in and had to try 5 cards before they could pay for an order, you can bet your a$$ that customer would be moved to "prepay before you lift a finger" terms.

Unless I'm missing something?

 

[RaymondLoewy]

The only workable solution is dealing with clients that have money.... IMHO. I can never imagine going to pay for something and A) Not knowing if I have money on a card and B) Having so many maxed out cards that I can't remember which one has monies left. But maybe I'm just responsible with my/my company's money, who knows.

If someone walked in and had to try 5 cards before they could pay for an order, you can bet your a$$ that customer would be moved to "prepay before you lift a finger" terms.

Unless I'm missing something?

I think Robert is trying to teach you how to help teach your customers how to manage their monies better in order for you to be able to take more of their monies.

 

[Robert Armerding]

I am observing the various replies. If possible, I am hoping for more replies so that I can begin to understand how best to address the matter. There are dozens of ways to look at this problem. We shall see. Please keep the replies coming. If where we are right now is all that we are going to get, I will start to post my thoughts.

 

[Dan360]

Credit card manager app with subscription fee?

 

[Gino]

I am observing the various replies. If possible, I am hoping for more replies so that I can begin to understand how best to address the matter. There are dozens of ways to look at this problem. We shall see. Please keep the replies coming. If where we are right now is all that we are going to get, I will start to post my thoughts.

Can I quote you on that ?? I can only think of a few, but you have dozens of them. Hmmmmmm.................

 

[Zendavor Signs]

I distinctly remember working at the sales counter at Product Sign Supplies in San Jose CA and watching as a sign maker would pull out a stack of credit cards, sort through them, hand me one of them and say, “Here, try this one.” I would try it and hand it back, “No, it did not go through.” Then that person would hand me another one. This might go on for several attempts. Finally, one would work.

Two questions:

1. Is that still going on today?
2. What if I came up with a workable solution, would there be any interest in hearing about it?

If there is an interest, I am open to putting my solution right here. If there is no interest, no problem.

Haha, that's because most sign guys are broke. What is much worse, is when this happens by taking cc info over the phone.....then you have to call the customer back, etc. We eliminated that problem by integrating Authorize.net with Shopvox. Eliminated most walk-in cc payments. Now if a customer has a bum card, they get to deal with it themselves.

 

[Robert Armerding]

Positive cash
Negative cash
I have chosen the term "Negative cash" simply because anything that takes cash off the table is a subtraction. You had a dollar and now you don't.
If you face any challenges in the management of your cash flow, then I intend to post workable solutions in this thread.
Let's first be very clear about the problem.
There are many different types of cash flow management problems. Credit cards could be one of them. Long-term debts could be another. Income tax, sales tax payments could be another. Payroll is often a cash flow issue. Different parts of overhead can create cash flow issues. Inventory is often a place where cash is tied up for months.
Are we clear about what constitutes a cash flow management problem?
I invite as many as are willing to participate in this discussion. Or, if you would rather, just watch, I understand. In my next post, I will describe the first step.
Please reply.

 

[RaymondLoewy]

I am observing the various replies. If possible, I am hoping for more replies so that I can begin to understand how best to address the matter. There are dozens of ways to look at this problem. We shall see. Please keep the replies coming. If where we are right now is all that we are going to get, I will start to post my thoughts.

Let me know if you need help understanding, I can listen and we can talk it out one-to-one for $350 and hour.

 

[Notarealsignguy]

The solution to cash flow problems is don't spend all of your money and don't buy in to that stupid pay yourself first idea. The majority of small business owners are pass through so what difference does it make if your money is in your business account or your personal account?
Other tricks. Don't take on jobs so large that they tax your cash reserves. Don't extend terms to customers if you can not float it. Think twice before using section 179 on equipment that you are financing. The write off is gone but those payments are still there. Don't buy things you do not need. Manage and track your jobs so they are all profitable. Don't wing it and think you are going to succeed long term.

 

[Johnny Best]

The solution to cash flow problems is don't spend all of your money and don't buy in to that stupid pay yourself first idea. The majority of small business owners are pass through so what difference does it make if your money is in your business account or your personal account?
Other tricks. Don't take on jobs so large that they tax your cash reserves. Don't extend terms to customers if you can not float it. Think twice before using section 179 on equipment that you are financing. The write off is gone but those payments are still there. Don't buy things you do not need. Manage and track your jobs so they are all profitable. Don't wing it and think you are going to succeed long term.

And there you go. Problem solved and did not have to make a private message to Robert to get that info.

 

[Texas_Signmaker]

Sounds like someone is trying to put to use the books he read last week.

 

[CanuckSigns]

I'm always blown away by the other shops we do work for that have no money in their business account. Did some printing for a wrap installer a while ago, gave us a cheque for the $250 he owed and asked us to hold it till next week before we deposit it.

 

[Reveal1]

The solution to cash flow problems is don't spend all of your money and don't buy in to that stupid pay yourself first idea. The majority of small business owners are pass through so what difference does it make if your money is in your business account or your personal account?
Other tricks. Don't take on jobs so large that they tax your cash reserves. Don't extend terms to customers if you can not float it. Think twice before using section 179 on equipment that you are financing. The write off is gone but those payments are still there. Don't buy things you do not need. Manage and track your jobs so they are all profitable. Don't wing it and think you are going to succeed long term.

Good advice. Will you accept credit card as payment?

 

[John Miller]

I distinctly remember working at the sales counter at Product Sign Supplies in San Jose CA and watching as a sign maker would pull out a stack of credit cards, sort through them, hand me one of them and say, “Here, try this one.” I would try it and hand it back, “No, it did not go through.” Then that person would hand me another one. This might go on for several attempts. Finally, one would work.

Two questions:

1. Is that still going on today?
2. What if I came up with a workable solution, would there be any interest in hearing about it?

If there is an interest, I am open to putting my solution right here. If there is no interest, no problem.

It really is quite simple, collect a 50% deposit to begin work. Spend a portion of the deposit to buy materials for THAT job. If you find yourself using deposit money from one job to work on another you either have too much overhead, or you're not charging enough for your work. When pricing a job you have to know what it costs to open the door each day. The job you quote must support that cost or you'll have a pack of credit cards that are all maxed out.

 

[Notarealsignguy]

There are a lot of people out there that think the sales price - material cost = profit