Lift rental, customer pay, or u pay up front?

Markgkda

Markgkda

New member
I do not have to rent lifts often but when i do I always worry if the customer stiffs me then I'm out the labor, fixed expenses and on top of that the rental which in this case is $450. Do any of you make the customer pay for that directly, making arrangements with the lift company. I will do all the legwork to arrange del dates and times but would like to take that portion out of the equation. Thoughts?
 
If you get an account at Hertz, Sunbelt, United Rentals etc.... They will let you pay in 30 days after you rent the machine so the delivery, tax, and environmental fees are at least put off until you get paid or at least have some time fighting to get paid.

(Remember to always get the insurance for expensive equipment, for the few bucks, it has saved me thousands of dollars if there was trouble or any question of how or who "broke the machine or the little electrical part that costs $800)

The National rental companies can also help you with getting paid by setting up a pre-lien situation with the rental.

If you feel the client may pull a fast one, ask the rental company to send out a pre-lien to your client prior to the rental. This will help deter the client from not paying your invoice. If you don't get paid, contact the rental company and have them "lien" the client and their property and watch how fast the client pays when the property hold notice shows in the mail

Keeps everyone honest and puts the client in check when you are putting out money for equipment.
 
Our washing division pays it up front and marks it up. This way it's my machine and I get to use it. I've seen it where the customer also told another contractor they could use it when we stopped for a few minutes. Makes life much easier when it's yours.
 
Depends on the situation now that I think about it. If the job is net 30+ I will have them pay a portion of the estimate.

If it is paid upon completion (< 10 days) I will take the upfront costs.
 
Part of my thing is that I manage services. I try to make things as easy for my customers as I can. I pay upfront. However, I don't do residential nor small commercial.
 
DunRite said:
I just bid a commercial account which requires a lift at several locations

I agree its best to make it as easy as possible for the client-

Its included in the bid with a small mark up on my end
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I do the exact same thing. Plus if the customer pays for it you might get a lift from the 1960s because they are trying to save a buck.
 
Markgkda said:
I do not have to rent lifts often but when i do I always worry if the customer stiffs me then I'm out the labor, fixed expenses and on top of that the rental which in this case is $450. Do any of you make the customer pay for that directly, making arrangements with the lift company. I will do all the legwork to arrange del dates and times but would like to take that portion out of the equation. Thoughts?
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This can be a concern with any "New" business....as long as you have a contract or paper trail, you shouldn't have to worry too much.

Real question is....Is your concern of being "Stiffed" a "You" problem (Just Fear) or a "Customer" problem (They've done it before).
 
My question is, how much does everyone mark up the lift rental? I usually go 10%, but lift work is still performed at a premium price.
 
Guy Blackmon said:
Real question is....Is your concern of being "Stiffed" a "You" problem (Just Fear) or a "Customer" problem (They've done it before).
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This seems like a deterrent to commercial for me. Lots of people worried about not getting paid. Is this common?

Most contractors around here (residential) will not do the job if someone is not there to pay when they are done. I don't have a problem billing people and have only been stiffed once on a $350 house wash.

I went to get payed and the lady said I blew a fuse on her garage door and they think I broke it. I told them to get someone out there and I would take care of it. Well the brother in law came and flipped a gfci somewhere in the garage. I was relieved, but when I showed up the next day to get paid, the lady hits me with," the electric in the upstairs bedrooms aren't working". I assessed the situation and discovered that it was 2 separate zones that were out. That didn't ring true to me and I also found out that the day before I was there the landscaper cut a line to the outdoor lighting system and was monkeying around with electric box. She refused to pay me until the electrician came out and see "who's fault it was" The lady had a slight canadian accent(no offense canadiens) and I just had a bad feeling about it, so I just blew it off as too much of a hassle to deal with it. So in two years I basically only got stiffed for 3 hours of work.

Is there an acceptable ratio of non-payment by commercial clients? Whoever fault it is? or is that rare?
 
Ralph- i think its pretty rare

first off as far as the lift goes, to me its like ordering any other materials needed to do any job. If you have a signed agreement to the job you order the materials

Secondly- I like to be in control of whats needed for the job- NOT the customer- My mark up is usually a min of 10%- its for my aggravation so to speak

As far as being stiffed - ive never been stiffed although a few have tried- ive threatened litigation (and i would follow through) but it does depend on the situation if its worth it. Either way ill get something back i can promise that
 
Cal Trans 2014.jpgAll lift work should be at a premium, but does everyone line item the cost for the lift in the proposal?

99% of the time my jobs are bid as a lump sum and the cost of the lift and all the associated costs with the rental are incorporated into the lump sum price for the job. If I was putting a % mark up for the lift rental it would be at least 25% or more. The lift with all the rental costs is about $450 day so about $100 a day for a mark up would be typical. We rent 40' and 60' booms about 6-8 times a year for several days each job.
 
clarkservices said:
View attachment 28506All lift work should be at a premium, but does everyone line item the cost for the lift in the proposal?

99% of the time my jobs are bid as a lump sum and the cost of the lift and all the associated costs with the rental are incorporated into the lump sum price for the job. If I was putting a % mark up for the lift rental it would be at least 25% or more. The lift with all the rental costs is about $450 day so about $100 a day for a mark up would be typical. We rent 40' and 60' booms about 6-8 times a year for several days each job.[/QU

same here- Why break it down, so the client to can pick at it?..

Less to discuss
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Scott Stone said:
My question is, how much does everyone mark up the lift rental? I usually go 10%, but lift work is still performed at a premium price.
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Totally agree Scott, depending on the length of the rental we charge anywhere from 10-25%. I don't like worrying about refueling the lift and they charge $6-8 a gal. to refuel after they get them back to the yard......we factor that in too.
 
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