# So I think I am done with the "cash price"



## NYCB (Sep 20, 2010)

For awhile I fell into the trap of "Give me a cash price" and actually providing one.

Mostly for friends or other contractors, but it didn't take me long to realize that it doesn't matter if it is a cash or a check, that money is still being used to pay my expenses and bills.

I have a good friend that works almost exclusively for cash and gives heavy discounts for it because he believes he doesn't get taxed on it, the IRS could find out you have that money regardless once they start to look at billing histories, so I don't understand the logic.


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## pinwheel (Dec 7, 2009)

Cash discount only if you're planning to defraud the IRS. Personally, I've got too much to lose if I get caught, so everything goes through the books.


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## ohiohomedoctor (Dec 26, 2010)

Cash discount does NOTHING except demean your business take money off your table. I tell people when McDonalds starts I will.


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## BamBamm5144 (Jul 12, 2008)

I usually tell people one thing. 


Cash, check or credit. Doesn't matter to me, all looks the same in the bank account.


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## 480sparky (Feb 1, 2009)

I don't discount for cash as it doesn't reduce my CODB one penny.

The only exception might be for a small amount.... less than $500. All I do with that is put it is the safe as 'petty cash' and save myself a trip to the bank to withdraw it in the future.


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## tbz (Dec 27, 2011)

I while back I had gotten a few bad $20 and a pair of bad $100 over the course of a month, so I started to only take cash in small amounts that I could take a good look at all the bills, but my preferred method is check from clients, credit cards are fine also, but checks are ok.


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## VinylHanger (Jul 14, 2011)

I take cash, but don't offer a discount. I don't like taking cash because it is hard to prove an amount later on. If there is ever a discrepancy, you have no proof of how much you were given. Checks and cards have a paper trail. Most times cash is small amounts and usually when I don't have an invoice ready.

As far as a discount goes, no way. The only way I give a discount is if it is a good friend and I just flip them a small number for my pride. They usually reciprocate when it is their turn. Regular day to day business costs me the same, so a discount just takes money out of my family's pockets.


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## Anderson (Sep 7, 2009)

I tell them cash check or gold please that gets them laughing. No discount for which even type they use. Not set up for credit card. I am afraid that all someone has to do is call there credit card company and they pull the money back as well as fees associated with credit cards.


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## fast fred (Sep 26, 2008)

all those hippies in the ithaca area forcing you to take their ithaca hours ie: fake money and barter with goats and organic corn....................


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## NYCB (Sep 20, 2010)

fast fred said:


> all those hippies in the ithaca area forcing you to take their ithaca hours ie: fake money and barter with goats and organic corn....................


It is actually my favorite place to work. Plenty of places to eat lunch, and most people have enough money so they just say "Sure sounds good" and write the check.

The traffic is a ***** though.


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## Randy Bush (Mar 7, 2011)

That's as bad as people asking what your rock bootm price is . Ah ! " I just gave it to you"


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## Dirtywhiteboy (Oct 15, 2010)

pinwheel said:


> Cash discount only if you're planning to defraud the IRS. Personally, I've got too much to lose if I get caught, so everything goes through the books.


And the Federal Government doesn't defraud us:blink:


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## Spaint90 (Dec 26, 2011)

It really amazes me how many contractors do not value their own products and services. Even salespeople in this industry.

Ill walk away from the table with my deal, you'd be surprised how many people chase me. If i sold the job right, i control negotiations, i control terms and they follow. If they want a better price, i drop the scope of work, never price. Cash discount "mr and mrs smith, will all do respect i operate an on the book business. It does not make a difference if it is check, card or cash because i still pay my employees the same, i still pay my suppliers the same and the irs still gets paid. What i can do is this, instead of using the top of the line windows i can use a step down instead, that should give you the price you are looking for fair enough"

They are looking to see your bottom line, if you just drop they think they can go lower. If you hold they will believe that you are truly at your bottom price.


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## Randy Bush (Mar 7, 2011)

Another one that really gets me is when presenting a bid to the customer , you find out that company ABC will knock off thousands of dollar if they sign right now. How dumb, first thing I see is they where charging way to much in the first place if they can do it for the lower price. When I give a price that is what it is, unless there are change orders done . Like others have said it does not matter how you pay me it still goes there the books.


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## Spaint90 (Dec 26, 2011)

Randy- I will disagree with you there about knocking off thousands of dollars. What happens when you go into a retail store and its black friday? you get a huge discount on all the items in store. What happens when you book an airline flight in advance? you get a discount. What happens when you go into a grocery store and certain items are always on sale certain days of the week, but sold at retail every other?

Business's essentially train their clients to buy a certain way. Most of the business's that operate that way in this industry have a substantial amount of employees, they hire salespeople and production managers, marketers, GMs. It operates like a business. OF course to pay for all that they have a substantial amount of overhead and therefore their operating costs are alot higher.

So to ensure that they keep their backlog going they give a discount on that first day, so they can sign and keep the salesforce going out to generate new business, instead of having to go back to a customer that makes up their mind 5 weeks, or 5 months down the road. 

For you it may be a competitive advantage, because you dont have all that overhead you can keep your costs down. And you can use that in your sales process.

But for bigger companies it makes alot of sense. They tend to take a hunter approach to business instead of gatherer. You probably have alot of WOM, referal business? You may even just go into someones home and leave a number, wait for them to call and gather your business. A bigger business has to take a more pro-active approach, contantly marketing and making sales to stay in. Each has its own benefits.


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## Oconomowoc (Oct 13, 2011)

I've always felt "cash price" hurts a companies image and brand. People like to deal with professional and consistent companies. They also find comfort that other consumers pay a similar rate. What often times seems like a special deal for a special consumer backfires. 

Cash price is nothing but a problem.


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## NYCB (Sep 20, 2010)

Customers are bad, but other contractors are worse I think.

You go to help a guy out and say "I need $30/hr for the day" and they counter with "How about $20/cash?"

I did that once because it sounded great in my head. Once I had the money I realized that I still needed to put it in the bank on the way home.


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## Oconomowoc (Oct 13, 2011)

sitdwnandhngon said:


> Customers are bad, but other contractors are worse I think.
> 
> You go to help a guy out and say "I need $30/hr for the day" and they counter with "How about $20/cash?"
> 
> I did that once because it sounded great in my head. Once I had the money I realized that I still needed to put it in the bank on the way home.


Lol, yeah, that's pretty much how it works. I've done the same


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## brickhook (May 8, 2012)

one bad thing about working for cash....if you ever have to go borrow money, the bank wants to see your last two years tax info. all cash...no records, and on paper your company didn't do as well as it really did. in the big scheme of things cash really isn't good for your company......


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## dom-mas (Nov 26, 2011)

VinylHanger said:


> I take cash, but don't offer a discount. I don't like taking cash because it is hard to prove an amount later on. If there is ever a discrepancy, you have no proof of how much you were given. .


Give them a hand written receipt on the spot says something like "amount recieved in Cash $***x, todays date etc..." and you both sign. No discrepency there


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## DavidC (Feb 16, 2008)

Many moons ago I did a vinyl siding job. The down payment was a check, but when we got to the final it was different. (In those days I had large last payments, no longer recommended) He asked if I could accept cash and I said sure.

When I walked into their living room he had piles all over the floor, a few 100's & 50's but mostly 20's,10's and 5's. You bet, there was even several inches of ones. All laid out in precounted piles, which he counted again and asked me to do the same. Don't remember the amount but it had to be at least a few thousand. Levis don't make enough pockets for that ****.

He didn't ask for a cash discount either, and yes it all went to the bank.

Good Luck
Dave


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## HomeProConsult (Sep 12, 2012)

It doesn't take much effort for and IRS auditor to discover this sort of thing. Not worth it. Very telling of the person's scruples that asks you to work for cash.


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## NYCB (Sep 20, 2010)

Now the hard part is going to be getting people to write me out a 1099.

I try to avoid working for other guys when I can, but sometimes it has to happen.


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## Dirtywhiteboy (Oct 15, 2010)

HomeProConsult said:


> Very telling of the person's scruples that asks you to work for cash.


Scruples:blink: Cash is the American way it's the government that wants to see your every transaction :whistling They would like a cashless sociality. Remember every cash note has on it "This note is legal tender for all debts, public and private"


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## dom-mas (Nov 26, 2011)

It's a sign of the times when people are squeamish about accepting cash. In Canada unless the amount is over 10k, cash is an acceptable form of payement. Still is fine if over 10K but has to be disclosed or something. Hasn't been a problem for me yet


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## NYCB (Sep 20, 2010)

I have no qualms about receiving cash, just about people expecting the "no tax discount" by paying with it.

Surely though, I would be a little nervous on a Friday afternoon if I got a huge final payment in cash and couldn't deposit it all weekend.


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## HomeProConsult (Sep 12, 2012)

I have no qualms about accepting cash as a form of payment. It is the 'purposefully evading taxes' that I am not in favor of.


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## gastek (Mar 29, 2011)

HomeProConsult said:


> I have no qualms about accepting cash as a form of payment. It is the 'purposefully evading taxes' that I am not in favor of.


"purposefully evading taxes" Hmm, don't the wealthy do this as well as the politicians? What's good for the goose is good for the gander. 

I'm not advocating this type of activity though. :whistling


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## DavidC (Feb 16, 2008)

The IRS recognizes a huge difference between tax avoidance and tax evasion. 

Good Luck
Dave


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## jamestrd (Oct 26, 2008)

Cash is King..What other more guaranteed form of payment could you ask for?

sending a little down south to your charity of choice is the American way..

Im sure everyones books make enough sense for a charitable contribution..


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## EthanB (Sep 28, 2011)

I don't mind cash, the bank still takes it:laughing:

I've had several people ask me if I discount for cash and I simply tell them that it all goes in the bank. One fella was pretty adamant about how much I could "save" by taking cash and I asked him if he was asking me to commit tax fraud and then pass all the savings to him and, if so, what was I "saving"?

I do know of several companies that offer a "cash discount" for payment other than credit cards equal to the fee. That seems like fair play to me as it doesn't cost the contractor and it helps the HO. I know there are specific limitations to how this can be done because of the agreements with the CC companies.


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## cabinetsnj (Jun 10, 2012)

I think its a bit unprofessional to do that, as most customers know why you would offer such a discount, and if you engage in such methods, then what are you conveying to your client regarding your business practices? I just see it as a losing proposition.


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## kitking (Oct 8, 2012)

sitdwnandhngon said:


> For awhile I fell into the trap of "Give me a cash price" and actually providing one.


Homeowners usually pull that crap, after ALL the bid work is done... At the last moment... They do it to try and get it for a little less... When they used to pull that on me I used to say...

(In a surprised, questioning tone) that is the cash price?! I always quote it for cash only... That's how I am able to do it for so cheap... If you want to pay with a check its x amount, and if y ou want to use a credit card it's even more... They charge me for credit card purchases... Lol... That would usually kill that conversation


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## gastek (Mar 29, 2011)

I posted last month that I had a customer offer to pay me in gold.:thumbup:

Just remember, WalMart, Sears, McDonald's, Burger King, Macy's, etc do NOT give you a discount for using cash.


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## dom-mas (Nov 26, 2011)

Hope you accepted the gold. As long as there are women on earth, gold will always have worth. Can't say the same for cash


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## gastek (Mar 29, 2011)

I was not knowledgeable enough to make the jump to accepting it. Maybe next time.


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