Plumbers are an incredibly important part of our society and most homeowners would be stuck without them. However if seems many are not getting the thanks and appreciation they deserve, with research revealing that UK plumbers are not only getting paid late but are often finding themselves chasing up said payments.
The survey from Worldpay looked at over 1000 tradespeople from across the country, and found plumbers have to chase their earnings up for around 27 weeks - almost twice as long as the average wait time of 15 weeks. More specific data found included that tradespeople are typically paid late once a month, with the annual total late payments owed coming to around £799. Worse still, most of this debt (£770) gets wiped off completely. Meanwhile the average figure for plumbers is significantly larger rising to upwards of £,948 a year. This resulted in over half of respondents admitting to have problems with their cash flow, in additional to worrying about damaging customer relationships and time wasted on chasing payments.
In an attempt to combat this, Worldpay have offered plumbers a few suggestions to help ensure they always get paid on time;
- Offer customers a wider variety of payment methods. Out of the plumbers spoken to that were paid late in the last 12 months, 73% said that automated (ie card) payments are important for maintaining a regular cash flow.
- When in doubt, check your customers' credit history. It costs a small fee, but could provide further information.
- Ensure you have the name and details of the person(s) responsible for paying.
- Make sure you have properly agreed contract terms. Getting proper legal advice from the get-go may seem like a hassle but could save a lot of time and money in the long run.
- Consider charging interest on late payments. Making your customers immediately aware of this should hopefully put them off paying late.
With this advice in mind, attaining that dream of becoming a professional plumber should be one step easier. However before you can even think about businesses and payment options, you're going to need the necessery plumbing skills and the qualifications to prove it. Give Access Training a call on 0800 345 7492 to find out more about our range of intensive plumbing courses.
From: Professional Electrician & Installer
Findings from a recent survey into consumer attitudes to payments reveal that many self-employed tradespeople may be losing potential income by not being able to accept card payments.
However, there is competitive advantage to be gained as the survey shows that businesses adopting new card payment technology often attract more customers than those only accepting cash. In the last year, one-in-five UK consumers has abandoned a purchase due to the trades person not accepting card payments or because they did not have enough cash, over half of consumers (54%) finding this lack of flexibility inconvenient.
The implications are far reaching:
- 72% of consumers are left with a negative impression of a business that fails to accept cards
- 28% of customers may also see this lack of service as poor customer service
- 19% see lack of card payment options as being unprofessional
- 18% even perceiving the business as unsuccessful or struggling
- 87% state that they spend more money when paying by card as they purchase additional services or products, demonstrating the potential benefits on offer for those mobile workers that adopt the new service
Tradespeople have the potential to gain new customers by accepting card payments on the move. 38% of people saying that would prefer a tradesman (38%, an electrician 35% and a plumber 33%) if they accept card payments over one that doesn’t, even if the job quote, materials and service quality are the same.
The survey of 5176 people was conducted via online interviews with UK consumers (18+ year olds) during April 2013 for WorldPay.
As a consequence WorldPay has launched ‘WorldPay Zinc’ which allows tradesmen to use a mobile chip & pin keypad, costing £59.99, to take card payments on-site. Offering quick transfer of funds (usually 4 working days), this service offers a pay-as-you-go system of 2.75% per transaction.
This amounts to the tradesman having to pay £2.75 on every £100 pounds that is put through the card reader, this may seem to be a lot, but bear in mind some retail outlets pay 5% or more.
- Mark Jenkins
Mark Jenkins is the Electrical Course Development Manager at Access Training. If you would like to learn more about electrical work and maintenance, you might want to consider one of the many electrical training courses we offer. These are available for both DIY enthusiasts AND people looking to gain the vital qualifications needed to make the career change to become an electrician. To find out more give us a call on 0800 345 7492.