Forum Discussion
Heavy_Metal_Doc
Dec 11, 2013Explorer
Lantley wrote:
60 days net maybe the new world order but it's not always lucrative if you are due to be paid.
How many of are paid 60 days net by their employer? For a small operator 60 days is a long time.
In the end it is easy to see why many shy away from warrantee work.
Straight payment is just easier and more profitable. Why jump through hoops if you don't have to?
Let someone else (like the selling dealer) play the warranty game.
We deal with both sides of it as an equipment dealer.
Repair work for companies that want us to do the work and release the equipment back to them to use (to make their money) while we wait for 90 days for their A/P to send us check -- not happening. They CAN expedite the process. Either walk the check through and get it to us in a few days and we will release the unit, or pay by credit card over the phone and it can roll out today. When we have 40K tied up in parts which we have to pay for Net 20 from our vendor, does it really sound like a good idea to let it leave with nothing but some manager guys promise it will get paid?
I have found that national companies are the worst / slowest payers -- we have virtually all of them that we deal with on C.O.D. Some are so bad, we won't lift a finger for them without a credit card number as even a printed copy of a purchase order doesn't mean anything anymore. Meanwhile, the small one-man contractor companies show up prepared to pay upon receipt of the services.
One the other side of it, we pay outside shops, doing warranty work on stuff we sold to customers, with a credit card to get it resolved immediately to support the customer and also to help keep that shop from turning the work away to go do other things he knows he can get paid for easier.
I have done the same when people have asked me to work on other brands of stuff under warranty. I tell them that I am happy to help them, but the work gets paid for when it's complete and we get regular full labor rate (not doing reduced labor rates for someone else's warranty) - no sending a bill and waiting to get paid.
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