How do you independent mobile mechanics and welders ensure you get paid for your work? A bigger and well established company doesn't seem like a big deal to get paid by but what about these smaller outfits? Do you demand payment upon completion or upfront? Run credit/reference checks on them etc?
This is the reason I keep a day job and am really picky hows stuff I spend my spare time pulling wrenches on.
That's what's kept me out of it so far. I'm about at my breaking point of working for a company. I'm debating trying it on my own or just hanging it up completely and going to college or another industry.
If they are complaining about what it is going to cost before you start, if they have done none of the necessary oil changes and greasing that they were suppose to do. Run the other way. If they can't afford necessary maintenance I just tell them to find someone else cheaper and faster. If they insist that I do the job, I ask for cash up front. Would rather sit at home than work all day and not get paid. Just my way of dealing with uncertain people. Simon C
I think you have some work to do building relationships before jumping ship. If you're concerned about getting paid, why do you feel that way? Have you heard guys talking about it? Obviously putting your own *** on the line will require commitment and self-discipline. If you can find a bank that will set up a L.O.C., that will definitely make life easier until you get to where your cash flow is at a level you are comfortable with. You will have to decide starting out if you want to be a "bill when the job is done" or a "send the bills out on the 1st of every month" kind of guy. When (if) you get going, the customers you have good enough relationship with, you can bill them immediately and play the "I just got started, would it be ok to get a check today" card. After you get a little breathing room, you can send the bills. You will very soon know who needs an invoice in their hand before you leave the yard, and who you can send them to. We all have those guys that you hate to do it, but you don't leave unless you have a check in your hand. Another good policy is on jobs over a certain amount, they have to pay 25% up front.
Very true, Shimmy. How does one go about building relationships before jumping ship? Many of the companies and small contractors that would be in my target demographic would be a conflict of interest situation. I currently stay strictly in the shop so its not like they even know who I am if I were to turn up at their office with a business card.
Good point. If they don't maintain their iron, they probably have a cash flow issue.
Well if any on missed my opinion of conflict of interest the other day. When I'm not on your time clock with I'm doing isn't your business
That's one way of looking at it.
You might do like I did and find a friend with a business (construction or whatever works) where you can make ends meet while you build a customer base. If you set up an account with Chase Paymentech, you can take credit cards up front and preauthorize any amount before you turn a wheel. That way you know they are good for it.
This may come a bit from work at a deere dealer that didn't treat the crew quite so well. But if the company I'd treating and compensating have decent it probably would never happen.
One important thing to remember--The Dead Beats in any given area will search out any new shops/ mobile mechanics--because they have no credit and every shop around knows them and all work performed is 50% up front, when done C.O.D.
I'm not a mechanic or a weldor but I deal with similar issues. What @Shimmy1 said is accurate: each customer is different. I've found that some try to pay before I'm done with the job (and I don't have a clue what the total will be yet) and others won't pay unless I show up at their house with a paper bill and wait for them to write a check. Others get the bill right away but have to be reminded before they will pay. A very select few I can just send the bill to and within a week I have a check, it's almost magical!
Three years in and haven’t been stiffed, yet. But, sometimes it may take a couple months to get paid. I’m careful about who I work for. If a job takes a large expense of parts, I’ll tell the customer to purchase them so I don’t get stuck carrying the expense over. Smaller, owner/op types get an instant credit card invoice e-mailed or texted to them. The big players get a traditional invoice emailed to their AP person.
Whether it's dating, finding a house, finding a renter, finding an employee, or finding a job. The crap stays on the market longer, and comes back on the market sooner, so most of the market is crap. Here, there's a handy state website that shows civil and criminal court actions, very easy to screen most people very quickly. If you don't have something like that publicly available, then some sort of subscription credit check service may be a good investment. I am a terrible judge of character, have to learn to use facts instead of sympathy.
As a dealer tech you probably are not even seeing equipment from who your target customer base may be. Figure companies that dont run anything under warranty is a good customer there prepared to spend money on maintenance because they dont want it in payments If your looking for comfort or security get a job at the hardware store self employed is anything but a picnic you basically trade your one boss for 10 bosses all more important than the last on the flip tho you can make better money and it's your choice who or what you will do or put up with FYI there is no right answer just your answer
Just wait until you have 15 customers that all want you there yesterday. When you are punching a clock, you don't have to deal with those type of first-world problems, same as the bill collecting. But, the best will be when that guy who wrote you a $18k check calls when you are about halfway in on a similar job for a guy 3 counties over begging you to come and change the starter out on his [whatever] because he's going to go bankrupt if this machine isn't going by this afternoon.
There are 2 myths among people working at a dealer when they are considering going independent . Myth one is you will have trouble getting paid. Myth 2 is you can take time off whenever you want because you’re your own boss. Myth 3 comes up when you are successful. “ if I only had a helper I could get more done”
You think is ruff now when your on your own there will be several times the stuff to deal with. Alot of guys go on there own and its a good fit for them . Its going to take a some money to go on your own and it it dosent work you may end up in debt . I kind of like mechanic work and i have worked as a welder to but if they are at the bottom of my list of jobs.
And one that isn't a myth-only take what you can handle. overloading with work causes stress and stress leads to bad decisions.
Great question to ask before taking the leap. It is also a great question to state to the new prospective customer. My usual statement before taking a job is "how are you going to pay for my service." I bill on Fridays for general on going work. I bill at the completion of single jobs if that is all I'm doing for you. I don't come back until all past invoices are paid. I charge a markup on all parts I provide. I take credit cards. Potential good customers don't hesitate to the terms. I walk away from those who question any part of that. I have been bit in the past on bankruptcy filings but have since learned to use my contacts to check out potential clients.
I haven't been at a dealer in a few years now. To keep it short, getting fed up with the nepotism. I've got no problem working balls to the wall.
Nepotism is always a factor in privet enterprises.
Gets under a guy's skin when there's a slow day and you manage to keep busy but others can just sit around on their phones and still get paid.
I've spent 4-5 hours trying to get some small parts to get a unit going, made only $10 on the part and nothing for the time to get the part. Got the unit running very good, the customer paid me 2 months later and bitched about the price of the part. He said I had nothing better to do with my time. He has called 2 times since to get some work done, but I never find the time for him anymore. Washed my hands clean , and work where the customer just cuts a check. Have walked away from a few folks that could not afford to pay for their own oil changes. Zero chance they would pay me. You can sniff some out on the phone. Simon C
I went the self emoyed route over 2 years ago after getting laid off from a 'safe' job with a Fortune 50 company. Not always easy, but I'm very surprised at how my phone just keeps ringing. I haven't had any non-payments for work completed, but I have had a couple that stretched the meaning of my Net 0 payment terms. Most folks hand over payment after I hand them the invoice. Its been a blessing. I had one customer that withheld payment for a month due to a pending lawsuit that occurred after I performed my work. Another didn't pay for a month and wouldn't return my calls or texts. Then I got his business partner's contact number, reached out to him, and got paid that afternoon. I've had a couple folks tell me I'm too expensive. I said, "If you think I'm too expensive, then you're right. I am too expensive, for you." I happily walked away. If I'm doing the work for you, it's going to be done the correct way, with no half-assed short cuts. If you don't like it, hire someone else. I'm booked through February as of right now, and the phone keeps ringing. Overall, I've been blessed with great customers.
Wait, what are we talking about? I’m hitting the meth hard today, can’t focus. Customer asked me to wait until January to invoice. Sure, no problem.
I’ve been very lucky and haven’t had to chase too much money. I’ve always gotten paid eventually. The slow payers get slow or no service. The guys who take care of me get taken care of. There are too many good customers out there to bother with bad customers but it does take time to build relationships with them and figure out who the good ones are.
Another thing I've wondered about is business licenses. Everything I seem to find on the city/county websites seem to refer to a business with a physical and fixed location. Nothing really pertinent to a mobile based business which could operate in several cities and 2, maybe 3 counties.
92U 3406 . Are you in Alberta or B.C. It is fairly easy to get a business license in Alberta. Go on their gov't website to register. Did not cost much from what I can recall. Of course you will need to collect and remit G.S.T. every 3 months. Its not too bad. It helps me keep tabs on money made, owed, and spent. If you have any questions direct message me. Simon C
Yep, Alberta. I'm just in the planning stage right now. Weighing options, deciding what services to offer etc. Thank you for the offer, much appreciated. I more or less do just hydraulics these days but got thrown out of my normal comfort zone with doing a blown turbo on a newer machine recently. Kind of made me realize how much I miss having a bit of variety. Went on a solo service call the other day too and forgot how much I used to enjoy going all over the place.
A guy with some gauges and O-Ring face Tee-Taps can figure out lots. Is there pressure, Yes or No. Does the pressure hold , Yes or No. JIC Tee Taps are hand as well as the Komatsu style taps. The Cat Style Quick Connects are very handy. Also good to have a buddy working for a dealership for some technical info. Hope things work out for you. Simon C
Most of my customers pay within a week of receiving my bill. One of my customers lives about a half mile away from me. Most of the time his jobs a fairly small. I know when he is going to be calling me to do some work when I get a check in the mail from the last job I did for him. How about the old school guys that pay all there bills at the end of the year. Gotta a couple like that as well!!!!
Neither of those situations would work with me. “Uh, hello, mr mortgage company? Yeah this is Mike. Hey listen, I’ll be right down to make my payment as soon as bob old school pays me at the end of the year. Hello, hello?”
THIS is exactly why I specialize in 1 thing.. Diesel Fuel Injection Pumps.. I get paid BEFORE the pump leaves the shop.. & if I’m contacted to pull the pump and reinstall it.. I givem a flat price. And believe me, I’m about 500.00 cheaper than JD or Case or Cummins.. so I “usually” get the job.. I can do it so fast that I make $$ on the labor.. And if they have ANYTHING ELSE WRONG, sorry, I ONLY DO injection pumps..
Having been self-employed since 1990, I should write a book...........but I hate having to think and type at the same time. Before you jump ship, you should have 1 of 2 things established.............a customer following or a dam good reputation. Going self-employed without 1 of either will be very difficult. Do you know any of the customers of the equipment you repair? Do they know who you are? You will need to separate yourself from others in the same line of work. If you are in a shop situation, you are usually just a piece of the shop.......and the shop gets the credit for machine repairs and the reputation.........not the guy that does the work. Another thing is customer expectations. If you have a field truck and are charging....say $100.00 an hour.............expectations of your abilities will be high. If you were to go out on a job that a customer thinks may be a hydraulic problem and you find it is an engine problem.................what do you do, then? If you put yourself in the position of only being able to take care of hydraulic problems and nothing else, you are going to be very limited on the type of work you can do. It will be tough to survive in that scenario. You will need to be the "Johnny on the spot" that can take care of and troubleshoot whatever may come up. If you cant do that, your good competitors will eat you alive. Collecting money has never been a big issue for me. I've got screwed a few times.........it happens..........you just have to learn from it and make adjustments as you go. Don't let the size of the customer and how much equipment they have, or the condition of their equipment be the guide for your prospective business customers. I would never expect the small company doing $1M a year to be near the same class of a company doing $50M a year in the way they take care of their equipment. Too many times throughout my career..........it's been that farmer with 2 tractors, that contractor with 7 pieces of equipment, my neighbor with a track hoe and a dump truck, that super small paving company that only does driveways, or that county that can find no one to do anything...............those are the ones that kept me alive when the economy went to **** and the big companies cut back on expenses. Now the part that concerns me the most.........you stated you are in a position where you are thinking of a career change? Outside of the BS, do you love what you do repairing equipment? There will always be BS, even being self-employed........that will always be there. I would encourage you to stick this out, whatever it takes. Your time will come............you just need to have your ducks in a row before you make that leap. A suggestion, and some here may not agree with it. When I was doing shop work, almost every piece of equipment I worked/repaired had a huge company sign on it.........or I saw the work order, so I knew who's it was. My boss NEVER contacted a customer after their machine left. I DID! A week after their machine left, I would call the company and ask how the machine was doing and if they needed anything else. This did 2 things...........I made sure they knew my name and that I was the one that took care of their issue. It also helped build a relationship with that customer when doing shop work would have never allowed this. The company I worked for considered it good customer relations...................hell, I even got paid a bonus from the owner of the company I worked for as he made an example out of my doing so. I never promoted myself to take business away from the company, so it was never an issue. What i DID do was put me on the map. ..........for the future.
To get started on your own you will definitely need to do some jobs outside your comfort zone. When you are at a job site the customer almost always has a “ while you’re here” list. You will get a lot more call backs if you can at least try to get them running. Air conditioning service is a good gig in the summer. Gets you out to more jobs that will have other work once you’re there.
I realize you are in Canada, but here's how it works in the states. I send my cranes out all over, but my business "address" is the house, and our "business" all takes place at that location. The checks get sent here and the invoices leave from here. I do have a business license from a couple cities that complained about me "working" in their town. But I compare myself to the trucking or concrete plants / rock delivery guys. They don't have a license for every little burg they deliver to, the "business" takes place at the home office. I really like Vtech's post. It applies to all businesses, people like working with people they know. I call certain places for parts or info, and I have a list in my head of who I want to talk to at those locations. I've followed a couple parts guys to their next job, because they knew what they were talking about. I don't care if they were working for Mack, Fleet Pride, Inland, or Kenworth, I just want to talk to Jake. I think in the mobile mechanic game, you are going to have to want to be in the field, and enjoy the challenge of working on anything . I think its going to become harder for the independents, simply because of the proprietary electrical/ computer diagnostics, that the dealers are going to want you locked out of. I don't know that there isn't a place to be a "specialist" either if that's what you want. Be it rock crushers, line boring, welding, engine diagnostics, or like the "pumpguy" in injections pumps. But you're going to have to have the experience to be the "expert".
I just think of all the problem a guy would have being on his own. I am a hour or more from much of any parts. Parts specailty tools, weather , getting paid , scheduling, long hours, why? If you had 3 or so good customers that paid and understood it could work but chances of that would be like playing the lottery.
We have sales taxes in this state which are assessed at the point of the repair. I don't have to have a license for every place where I do business. I do get a listing and I have internet access to all the tax districts where I have done work in. I used to have to spend a Saturday at the end of every quarter just in filling out the state taxes and getting them paid and sent in. I don't do much repair business anymore so only have to fill out those forms once a year. A specialist isn't a thing unless there are a lot of examples of something that you can specialize in. Fuel injection pumps are a great example. There are lots of them on multiple types of diesel engines which can be removed and sent in to someone. Sometimes a brand of machinery can work that way. For me it was Komatsu but there are specialists in this state that work on Link-Belt and Kobelco that can make a decent living. I've only known a couple of independents who worked on Cats and none that specialized on Case machinery. There are lots of people who can work on Cats and lots of Cats out there but they seem to attract the kind of people who seem to think paying for repairs is somehow optional. You basically need to the horsepower to make someone pay the bill. Maybe the dealer has conditioned them to work that way. Not a lot of people around here run Case construction stuff and I wouldn't even consider doing repairs for them. I've seen others that do well working on cranes and scrapers. I've not known anyone who specialized in crushing and screen plants. All those people I've been around do their own work it seems. The thing is we all at some point in our careers worked for the dealers and accumulated our experience through on the job training. As far as the electronics go, the stuff is getting very easy to use from the operator's seat. It won't be long before it will speak to you and tell you what to do.
Yeah for the most part I deal with mostly hydraulics these days but I hopped around a bit while apprenticing. I've worked on a pretty broad spectrum of stuff from a gas powered compactors up to mining shovels. I certainly can be versatile if the need arises. For the most part I enjoy what I do, about the only other thing I could really see myself doing is maybe trying my hand at trucking in the oilfield.