Homeowners Sure Can Suck

Just got off of the phone with a customer with whom I have a signed contract for a roof we had scheduled to do in early April. All set, signed on March 17th and ready to go. Called to say we would get it done next week. Then the bomb drop. We thought we should get more bids and we are waiting on one now. ??????????? (Expletives deleted) Unbelievable! What the hell do people think signing a contract is all about? This is one of my biggest peeves with some people. Just venting.>>>

this kinda thing has never happened to me yet...since everything with the economy i have had it happen twice ( i have been on the phones/paperwork side of the business i work at for about 4 years)>>>

GKRFG Said: Thats what I get for not getting a deposit. Its my own fault but this has happened so rarely that I shouldnt let it get to me. I dont usually take a deposit but I may have to rethink that. My feeling has always been that by not taking a deposit my customers can be sure I will not run off with their money before I do any work. I usually take a check at the start of the job that covers all of the materials. This way there is no great risk to anyone.

Bingo.......always get at least a third down. If they balk at a deposit they're probably bums who don't pay their bills and you don't want to be a creditor. Deposits are like fences, they make for good relationships.

JET>>>

I've always told the homeowner that we don't require anything down, but that a small "good faith" deposit is appreciated. This sets that at east and 9 out of 10 times, the customer will offer 20-30% down... Or something like $500 down and 30% when materials drop.

The main thing that has always helped sales stick is the "warm down" after the sale. I try to stay for at least 30 minutes, but I let the customer dictate how it goes. If I have time I'll stay for dinner! I read over a sheet about what the next step will be and what to expect during the construction process and ask if they have questions or concerns. Then I try to spend as much time as possible talking about anything besides roofing, religion, or politics... Once again, I let the customer lead the conversation. They love to talk about their kids, careers, etc.

Finally, I try to talk to them often leading up to installation. I think a lot of cancellations happen when they don't hear from you for a few weeks. Calling (or stopping by if you're in the area) is very much appreciated.

I've found that these things really make the difference. It's easy for a customer to feel like they are just a number to you if you sign a contract, grab a check, and go. You might only spend an extra hour on them total this way, but you will ensure way fewer cancellations and way more referral and repeat business.>>>

Gerry, we get 20-35% of the contract price as a deposit at the time of signing of contract. In our province, contracts signed at the home of the customer have an automatic 10-day cooling-off period. So we wait until the ten days are up before we deposit the check. In our contract language, it is made clear that any cancellation of the contract by the customer AFTER the 10-day coooling-off period, is the forfeiture of the deposit by the client as liquidated damages.

We had one such cancellation in the past three years, and the customer was a general contractor who screwed up with his customer. We found out that the contract was cancelled when we showed up (on schedule) to start the roofing project, and were told the project was cancelled. The deposit was used to pay the salaries of the work crew for the day, and cover the cost of returning the material ordered, as well as a few non-reimbursable costs.

As for your concern that your customer may be thinking you will run off with his/her money, it's a non-issue if you have been in business long enough and have a solid reputation. We have never lost a job to anyone else because we have requested a deposit, and frankly, very few of our customers even ask the question. We identify as part of the proposal the amount of deposit we will be asking on any contract, and when they accept our proposal, they are also accepting the terms of the proposal. However, given the degree of effort that most of our customers make in checking us out BEFORE they accept our proposaal, it just doesn't come up as an issue.>>>

That's what I get for not getting a deposit. It's my own fault but this has happened so rarely that I shouldn't let it get to me. I don't usually take a deposit but I may have to rethink that. My feeling has always been that by not taking a deposit my customers can be sure I will not run off with their money before I do any work. I usually take a check at the start of the job that covers all of the materials. This way there is no great risk to anyone.>>>

How much of a deposit did you get and what does your liquidated damages clause look like?

BTW, I did get that info from Bob today regarding those 2 jobs in my town and sent out my other estimator to measure them this afternoon already.

Thanks for the leads.

Ed>>>

Try tellin the lady you have bought the stock and will be out of work a week because of this ? Times are tough you cant afford to miss a weeks work.>>>

I feel your pain. I had one sign a contract and give a $6000.00 deposit for special order materials. She called a few weeks latter to say I want my money back. I said you can have your shingles. She wants her money. I'm waiting for her next move. I did make an offer to hold shingles until I sell another job and then i would give a refund.>>>