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Customers asking to pay cash to avoid VAT.


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3 hours ago, muttley9050 said:

As a builder I would suggest that these are both incorrect.
Builders have staff and pensions.
Same deal as an average tree surgeon outfit.
Although I'm sure it has happened. I really don't think many builders are asking customers to set up accounts with jewson. I have good relationships with my suppliers and I get good prices. Materials are then charged at +15 to 20%. A good earner.
I wouldn't trust a customer to have the correct materials on site when I needed them unless i spent a long time schooling them. This is what the mark up is for.
 

As a [generally dissatisfied] customer of several builders over the years, both are part true and both may be part untrue - in degrees and according to circumstances.

 

Materials being charged out to a job at 10s of %s above cost is a well known 'trick', as is over ordering and milking materiels from one job to supply another or complete work at home.  

 

In my [customer] experience, there is more to be saved from setting up ones own account, ordering and keeping account for materiels and not least of which - when paying day rate, avoiding the "just nipping off to the builders' merchant' gag.

 

Maybe that's just my OCD though....  🤪

 

 

Edited by kevinjohnsonmbe
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14 minutes ago, kevinjohnsonmbe said:

As a [generally dissatisfied] customer of several builders over the years, both are part true and both may be part untrue - in degrees and according to circumstances.

 

Materials being charged out to a job at 10s of %s above cost is a well known 'trick', as is over ordering and milking materiels from one job to supply another or complete work at home.  

 

In my [customer] experience, there is more to be saved from setting up ones own account, ordering and keeping account for materiels and not least of which - when paying day rate, avoiding the "just nipping off to the builders' merchant' gag.

 

Maybe that's just my OCD though....  🤪

 

 

Yup your OCD is to blame 🙄

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As a [generally dissatisfied] customer of several builders over the years, both are part true and both may be part untrue - in degrees and according to circumstances.
 
Materials being charged out to a job at 10s of %s above cost is a well known 'trick', as is over ordering and milking materiels from one job to supply another or complete work at home.  
 
In my [customer] experience, there is more to be saved from setting up ones own account, ordering and keeping account for materiels and not least of which - when paying day rate, avoiding the "just nipping off to the builders' merchant' gag.
 
Maybe that's just my OCD though....  🤪
 
 
It's called business, its not a trick.
I don't charge customers for materials unless it's an extra. I give them a price for a job.
In order to work this out I get a price for the required materials multiply by 1.15 and use this figure to work it out.
If the customer got a price for the materials I doubt the total would be much different.
The 15% is to cover me working out, ordering, collecting, unloading etc the said materials.
If you pay a groundie £100 a day do you charge the customer £100 or more. I've heard of tricky tree surgeons making money by charging more for staff than they pay them.
Also I very rarely leave customers dissatisfied. Probably because I charge enough to do a good job. But some people can't be satisfied.
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