Friends, if you're in business, don't forget the people who helped you along the way. In our market, if you're a Realtor, you need lenders, closing agents, contractors, home inspectors and a host of others who save some deals and some who help you run from opportunities. They are valuable assets in your stable of talent which you get credit for. As some know, I own a real estate brokerage and a contracting company. Our electrical company bails out real estate agents in our market monthly, and we have done that for over a decade. This month alone, we have saved three deals and we're only seven days in.
With that said, since the 2008 recession, my electrical company has changed the way we bill our clients. In most cases,
payment is due at the time of service. Nearly 95% of all clients pay when the job is done. We do have large commercial clients such as, corporations, restaurant chains, doctor's offices and such that we give a grace period of thirty days, but most clients are required to pay at the time of service. Since 2008, we've only had 8 clients who never paid, paid late or only paid half of the bill. Seven of those have been real estate agents.
The seven Realtors have come up with some very creative reasons why they shouldn't have to pay someone who saved their deals, but it's all smoke and mirrors. We've saved more real estate deals than I can remember over the past decade, and it always amazes me when a Realtor doesn't pay the bill. The most recent one was about a month ago. The agent asked if we would wait till closing to get paid. Sure, it was only two days after the job. Three weeks later, no payment. When I inquired about payment, the agent said, "It was mailed." Now, the problem I have with that response, is was "mailed" from one side of town to the other side of town is a mystery. It doesn't take three weeks for a check to travel less than nine miles. When I reached out to the agent, her response was very flippant. She had her commission check. I got the impression she was saying, "It sucks to be you." When I pressed her, she gave some off the wall explanation why it hadn't arrived. The bottom line is, we saved your deal, pay the bill.
Sadly, next week, I'll place a collection on her client who is about to list another property with her. Do I care if she loses the listing? Not in the slightest. Right now, agents owe our electrical company more than $6000 dollars. Will we do work for them again? Sure. It will be like everyone else. Cash on the day of service. Friends, if you have contractors who keep your business moving forward, take care of them first and they will always be there. I make sure every contractor who helped us get across the finish line gets paid first. My commission comes last. I never have trouble getting pros to rescue a sale.
Take care of them last, and you will be in a continual search for competent tradesmen to help you out. The trade community is a tightknit community. Once your reputation gets around, you will have a hard time finding willing tradesmen who will help you make the sale. Take care of your helpers and they will take care of you. It goes both ways.
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