Service-based businesses can be very profitable, especially if they require specialized skills like plumbing. Customers typically aren’t sure which pipe goes where, or even necessarily where their plumbing is situated in their home. They call you in to fix a blockage or a leak, whether it’s water or gas. And because your skills are technical, you can charge a premium price. Unfortunately, even though your work is high-skill and people are willing to pay a high price for it, you may still find your business struggling.
Customers may be quick to speed-dial you when their toilet backs up, but they are often a lot slower in terms of payment. One way to resolve this challenge is to have your customers pay on the spot. As soon as the leak is fixed and the clog is unblocked, invoice them, and don’t leave without payment.
No pay no way
It’s easy for customers to claim they don’t have any cash in the house, and they’re not necessarily lying. After all, they weren’t expecting jto have to call a plumber, and then they had to wait at home for you to arrive, so they probably never had the chance to swing by an ATM. But they’re always sure to have their credit card, so offering the option of having them pay with plastic can make a big difference to your bottom line. Let them know your payment policy ahead of time. When they call for service, before you lift a single wrench, tell them what the repairs will cost, and verify that you prefer credit card payments. Indeed, you have probably already noticed that customers ask about whether they can pay using a credit card, and if you are not the only plumber in town, there’s a good chance they will take their business to a plumber that can accomodate them.
If you don’t want to carry around the extra equipment, you can sign up with a mobile payment processing system that has payment apps for smartphones. This facilitates instant payment, and the customer’s cash will be in your bank account within 24 to 72 hours. Credit card payments are safer than carrying around hundreds or thousands of dollars in cash. And credit cards can also be a lot faster than cash, when you consider how long it can take to chase down a delinquent payment.
Save yourself the hassle
When you accept credit card payments, it’s easier to keep track of where your business funds are, so it reduces the burden of cash flow. You can even code a ‘tip’ option into the app, which allows customers to voluntarily add a service fee if they’re happy with your work.
For more information on credit card processing for your plumbing business, or to sign up for a own merchant account, please call (888) 924-2743 or go to Charge.com.