When we were doing smoke restoration, we would have some better cash flow....if they paid (Insurance Companies and Clients)
When we were doing more water restoration dry downs....we would have some better cash flow....if they paid (Insurance Companies and Clients)
Found in the last few years even though we would have in our contract for direct pay or at least our name on the payments, the insurance companies were not doing so....
So my clients were taking long vacations on my dollar after we got done taking care of them and their homes, or the banks were taking the money because they were late on payments.
Starting around 2008 or so, we were seeing the shift, but it got really bad about 3 years ago.
Paying all that labor costs on a smoke restoration was costly, and then to sit and wait (or hope) to get paid just became too much of a pain for us (especially mentally)
As you know, I backed way off on the restoration and just pick and choose what water work I do now.
So....since my clients were going on long vacations with my money....I beat them to it this year and just got back from 3 weeks in Clearwater Beach Florida
Cash flow is slower, but we have thankfully been doing ok....fingers to crossed saying that!
I still have outstanding accounts from 3 years ago, and a lot of accounts are also over 4 months past due at this time.
Some of them are like this, so I anticipate and their prices are much higher
. They don't want to pay interest....so I already have it built in.
We are still reorganizing, but we are figuring it out how to make it through the winter without restoration.
The money just wasn't worth the MAJOR hassle we started to experience AND...a lot of people always thought the high price of restoration was ridiculous and we felt we were getting a black eye from it. (small town
)
In all the times we did restoration work, we only had 2 repeat clients from those jobs. They were not unhappy, they just seemed to be the type of homeowners who did not take care of their homes
So, we are heading into a financial planner this morning at 9 am as well
Might be Lake Havasu AZ next January Baby!
