YES, I’M IN 100%
Many years ago, before I got into the engine business, I met an attorney who told a story that made sense then and still applies today. He said, “when I represent a defendant, I get paid 100% up front, that way I only have to worry about keeping my client out of jail as opposed to both getting paid and keeping him out of jail. If I have to worry about both, I’m going to worry more about getting paid.” This applies today to many of our machine shop customers. Many times when I call on Machine Shops, I see jobs that are finished and just waiting to be picked up (and paid for) which creates a cash flow issue for the Machine Shop owner. They paid for the parts and the labor to build the engine and are forced to wait for their customer to come up with the cash. I do have a few customers who use the old attorney system of getting paid 100% before starting the job. They worry 100% about building the best engine possible and delivering it on time and their customers know it. If your customer can’t afford to pay for the entire job before you start, what miracle to do you expect for him to come up with the balance a week later when the job is done? Consider a 100% deposit on the job, and focus on completing the job on time, as promised.
Mark D. Sarine
Engine Rebuilders Warehouse, Inc.
Dania Beach, FL
July, 2014
