Commercial Work

[mortizx]

Love your page..  I have a several question perhaps you can help me.  I started in upholstery business and was doing marine and home, I want to expand to booths, dental chairs, hospitals, hotels, etc.. What is the difference in charging or method for charging and doing work for a hospital or any commercial place.  Do I ask for a down payment, do I need a special license?  Your help is greatly appreciated...

[MinUph]

I've never seen a need for a special license but that probably depends on your state and local. If you do a large job for anyone, hospital, restaurant, residential its is always prudent to get a deposit to cover your costs if at all possible. It might be hard from a hospital but most other places you should be able to get a deposit. Booth work is generally priced by the foot. This of course depends on the booth type and your costs involved. But bid by the foot.
There are special fabrics and vinyls for special uses. Naugahyde has a good way of differentiating them. It is based on where the product is used. Hospitals need something good with bodily fluids, marine is UV and mold etc.etc.
  Keep thinking this all through and you will do fine.

[SteveA]

I try to stay away from hospitals - I do better with bar seating -
SA

[sofadoc]

I've been doing work for a chain restaurant for over 15 years. A few years ago, they informed me that they were going to start requiring all vendors to provide liability insurance. I told them to get someone else. They called back a couple of months later and dropped the requirement, and practically begged me to do their work again.

I've never had any special licensing or bonding.

I don't think it really matters whether you bid booths by the foot or by the booth. I've always bid by the booth.

Mom & Pop restaurants can be notoriously cheap. So can private doctors. They SAY that they want the anti-germ treated vinyl........until they see the price. Then they opt for the cheapest, cheapest, cheapest, cheapest, cheapest.......you get the idea. Most private MD's work for some company now. So by the time the cheap vinyl fails, they've already moved on anyway.

My local hospital is highly departmentalized. I do work for some departments, but other departments within the same building act as if they've never heard of me. I've never asked them for a deposit. I know that they're good for it.

Don't let hospitals lead you around by the finger. If you let them, they'll have you parking 3 blocks away...........waiting in some office for 30 minutes............walking down mile-long corridors..........all just for a $50 job. Make sure they understand that your time is just as valuable as theirs is. You might think "Oh well, maybe it will lead to more meaningful work later on". But all too often, it only leads to more $50 jobs. Don't be afraid to turn them down if they're just throwing all the "Nickel & dime" stuff at you.

Just last week, I walked out on an estimate at a doctor's office, because they left me to rot in the waiting room with the rest of the cattle. They ended up hiring a medical maintenance company............who subbed the job out to me. I got the same pay without doing any of the legwork.

[Mike]

sofa you reminded me when I was doig for for marine max the nations largest before they closed the locsl shop well anyway id get a call from the service manager to come over to see a job I can remember how many time I walked in an had to wait while the guy was coddling some customer15 minute or so I just about left but id already drove over and I did get big paydays from them but still

[Rich]

I did work for a large local hospital a few years ago and it took 6 months to get paid. Today, I'm heading out to do some more work for them, but this time, I had them pay me up front for the entire amount.
Sometimes you have to bend the rules.
Rich

[baileyuph]

Well that sounds like a bummer Rich.  I don't know if I have ever done anything for a hospital, they asked me to bid on some tables (cover work) several years ago, guess I was too high.  I wouldn't like putting up with any nonsense.

There is enough work flowing around, I won't go and look for hospital work.  You guys make it sound like a bummer.

Doyle

[MinUph]

Yea most all commercial work is a long time paying. But they are good for it. As long as the cash flow is flowing its like money in the bank with no interest lol.

[bobbin]

Tell me about it, Paul.  I did a lovely job for a big sailboat at a very posh marina and had to wait 52 days to get paid.  I was beyond BS, but remained polite.  

My work was impeccable, I bailed their cans out by delivering old cushions (I'd been told to dispose of!) on the morning of the 4th of July (when the custom mattress people welched on their delivery date).  Interestingly, the panic-stricken e-mail was sent at 9:02 PM on the 3rd..  Good thing I checked my e-mail on the 4th., huh??  good thing I'd held on to the cushions for the master's cabin, huh???

[baileyuph]

Commercial work has its tough moments, Like I said, right now there is no engagement in hospital equipment.  But, several of my truck fleets will get on a program to fix seats and the work flows in and must flow out because they don't make a dime when their wheels aren't rolling.

The good news is they pay and pretty well.

Doyle

[crosjn]

Doing commercial work, you should be familiar with fire retardant specs.  Anything you install (foam & fabric) should be CAL-117 (a common standard) or whatever your local standards require.  And aviation work apparently requires a whole load of specific regulation requirement of which I know nothing.  Maybe someone here does?

I always ask for a 50% deposit on commercial work (50% deposit, 50% balance net 30) because you basically have no recourse if a client doesn't pay (not entirely true, but hopefully you'll never experience finding out!)  And having the deposit cushions the anger/anguish over some client's liberal use of NET-30 terms on the balance.

Also, know your client.  If it's a small GC, a small restaurant owner, etc...  I'll ask for 50% completion payment on delivery instead of NET 30.  Especially if it's a first time client.  Sometimes, I waive the deposit if they will issue me a check (or pay via CC) on completion -- this is particularly effective with small businesses who will usually slap it on a credit card. 

Don't be afraid to ask to be paid upfront if you get the feeling your restaurant job is owned by a couple of sleezy operators who are never going to pay you and sell the business as fast as they can open it.  That happens.  If they won't pay you up front, be prepared to walk away -> better to leave empty handed than leave empty handed after you've done the work!

And I've had the opposite experience of most of the people here.  I'd rather work for a slow-paying hospital any day (doing 100 cookie-cutter lobby chairs) than work in the restaurant where, at least here in Dallas, I worry a lot about getting paid at the end of the job.  I've NEVER been left unpaid by a hospital.  I definitely have in restaurants (and worse, clubs/bars.)

[Mojo]

Believe it or not I do commercial work now and then. For the most part I am a wholesale supplier and thus have to supply my products at wholesale prices in order for the dealerships to have a fair mark up to their customer.

I do not pursue dealer jobs and for the most part I hide from commercial establishments. While I do make money on their jobs, my margins are thin. I much prefer to sell retail directly to the end user or coach owner, which is where the money is at. I avoid dealer work when at all possible. The other problem is that dealer orders take precedent over all others in regards to my schedule. The main reason being is that many times they have a customer camped out in their parking lot waiting for a slide topper or whatever.

I have one dealer in Indiana I do a fair bit of work for. We do some co-promotion and advertising together and the owner and manager are friends of mine. Its a good working relationship. Other then that I do not do much dealer/commercial/wholesale work.

Chris

[bobslost]

Office managers and purchasing agents can be very loyal . If you do good work and you are fair with them they can turn into a good repeat customer . I have several doctor offices and restaurant that have turned into pretty good customers.
Years ago when I was in the Detroit area about 50% of my work was commercial.
Most of them I would give them 15 to 30 days net depending on the job and the customer and most would meet my terms. However watch out for the Big 3 they can take 90 to 180 days!