Look on the bright side Lee ... 18 months ago you would have been daft enough to let them take the engines away without paying! At least you still have the engines and can flog them to recover your cash! Have a good xmas!
A few years ago I had about £10,000 bodywork done on my vehicle, paid in four parts as the work went along. That's the only way to go. Both parties were entirely happy with that, they kept me informed of progress with photos, if only that we could consult on the way. Result? I got exactly what I wanted , I paid each stage immediately, and got top quality work done in good time.
I think a good plan going forward would be a stepped paying plan. You quote for strip down and estimate cost of rebuild, then the customer pays for the strip down. Next you order the parts and before fitting the customer pays for that, next they pay for the machining quote, and finally when rebuilt they pay the final bill. Or something along those lines. Hope that helps in some way? Merry Christmas and a Happy New Year to you all.
There are plenty of accounting packages that enable you to: estimate a job, send the estimate by email, ask the customer to approve the estimate electronically, send progress payment invoices by email, track the payments, track timesheets and parts costs, run project reports, run sales reports, prepare tax returns, etc.
Write into customer contract that in the event of non payment within a specified time frame. Their engine / product will be sold to recover your expenses for that said item. Have this drawn up by a legal eagle so it is an official document. By doing this you will recover most of your expenses laid out. And default payments can legally be recovered.
Make sure that if you have an outside container that your insurance is informed and that you can claim for theft or damage. This is essential if you're thinking about storing customer property in that container.
If it quacks like a duck, walks like a duck, mate, it's a duck! You can't get a builder to do nothing until he's solvent enough to buy materials. The solvency comes from the owner that wants the work done... asking for an eye watering deposit before any reconditioning work commences, keeps the bastards kosher, and their intentions pure, merry Christmas Lee, may all your surprises be pleasant ones...
When I was in the service business, in my state of California, we are allowed to collect 50% up front and usually all the parts cost. This is reasonable and if a customer has a problem with it, you don't need them.
I agree. We got stung holding $12,000 from a property developer who went bankrupt. We had been left hanging for much smaller debts in the past when client’s businesses had collapsed but that really stung and a lot of the amount was for reimbursement of money we had paid out. By itself, it wasn’t going to be a death blow but if we had that happen a few times, we would have been well under water.
Always collect up front any materials costs and when I was in business, I was allowed by regulation, to collect 1/2 the labor. Please consider this as brotherly advice. On another note, beware of a classic scam of a friend of a customer paying for something in arrears. For example... the LR V6 you have 11K invested in. If, eventually, you need to sell it on, beware of someone answering too soon after it's been listed for sale. The original punter who owns (defaulted) the engine will send along his pal and pay less than is owed, as you'll probably discount it to move it out of your hands. My husband works at a local warehouse club called Sam's Club. A very common scam is for someone to return an expensive appliance, such as an LED Television, which by law, cannot be re-sold as new, so Sam's cuts the price and the original customer sends a relative, or friend to buy it and basically steal it for the discount. Sorry for the long post, but I wanted to share. Happy Holidays!
Rapid swings back and forth are what cause the dizziness issue the most for me, but the new camera has much better clarity. As for the work/engines, put on your invoices up front, something like, any engines not picked up, or paid in full, are subject to auction after 6 months, or whatever is legal in your area. And/or 50% parts up front, 50% parts mid build, labour due on completion. If you don’t pay your 50% mid stream payment…all work goes to the back of the line and won’t continue till payment received.
During my career in the motor trade, I have requested a minimum of 30% of the agreed and signed estimate, with as others have stated, the disassembly is fully paid for first. Completion date of work also to be noted.
keep up the great work and enjoy Xmas, might be worth doing a stage payments plan so you don't get too far into the work, bit more admin but helps break the bill down for the customer, see you in 2025!
Rover K Series Engine: Stop chasing this punter, as it drains your energy. Instead send this to the Court, so you can get a summary judgement court order.
Great video as always, hopefully you’ll be able to recover some of the money. Didn’t bother watching the last 2 clickbait videos as thankfully I knew nothing was going to come of the landlord emails.
Workshop improvements. It's great to hear that you have some plans to upgrade the workshop and to improve your work processes. The door bell is a great start. Have you considered converting the front office into a client meeting room, with a meeting table, chairs, the coffee machine and some nice images of recently completed engine projects or some live GoPro feeds from inside the clean room that display on a wall mounted TV ( you can relocate the one from inside the clean room ) This will remove the need for customers to wander around your workshop.
At my machine shop we require 20% down on anything up to $1,000. Anything over that we required 25% down and any parts needed to be purchased that do not fit under the 25% deposit is additional that they need to come up final machine work and assembly will be paid for at the end when it's picked up
Definitely agree on the cash upfront idea I had to pay cost of parts bill when I had my Subaru engine done at pole position job was outstanding Shar explained i was totally ok with it just settled the labour cost when the job was done
I did exactly what you are proposing to do with your office. At first it was ok. Come the summer, it was horrendously hot, uncomfortable. I had to fit an a/c unit to make it bearable, then the noise from the a/c unit was a pain. Good luck and good health for 2025
If you install a modern split system AC unit, into the office, with the main pump located outside, you will hardly hear the unit running when you are in the office. Plus how many days of the year does it reach over 23 degrees Celsius in the UK?.
Great vlogs Lee, enjoying content. If we don’t see ya before, Merry Christmas to you and yours and hopefully a better 2025, same too to Issac and John. Stay well.
Just a well-wish for the coming year, and good holidays to you all and yours. I've enjoyed the previous year's output, and look forward to whatever you proffer us. (It keeps us from thinking/brooding on what's going on in our USA!) Thank you for all. Your plans sound terrific.
Possibly contact a solicitor and see if it is legal to add to your terms and conditions that if the final bill is not settled with 90 days of final invoice Berum Engines reserves the right to sell the engine/head/block whatever to recoup your outlay on Labour and parts. I am sure you could find customers for the k series and the V8. Merry Christmas when it comes round.
I had an engine rebuilt in my triumph cost me 7k this did include taking the old one out and putting the rebuilt one back in,the company I used billed me at every stages of 2k and took 1k to start the job, so no work till I payed the invoice at each stage. Best for both of us in my view, I would recommend doing it this way that way the risk is a lot less and can give the customer time to say hold the job till I can pay the next bill
That can work to your disadvantage just imagine your engine is nearly finished you have paid most of it, Then the engineering company goes bust . You have lost everything. Just saying.
@@Paul-pb3vq I understand your point but there are a number of contract clauses that ensure you don't lose everything and have the right to remove the material "owned" (the engine and any new parts paid for). Any administrator will be aware of these and will ensure the products are made available to the rightful owner. There are processes that need to be implemented by the supplier which unfortunately are likely to increase cost. A classic double edged sword.
@@Paul-pb3vq well you don't know much, any liquidation company will look to the owners of the engine first to get the money that is owed on it for work all ready done then you can get your property back, after that they will sell off what ever they can so the other companies that are owed money get some back but there are always losers, like the employee they only gets anything owed to them if after everyone else gets there's often nothing as the pot is empty, I know 😢
A great year well recorded. Just look at the quality work you and the team have done. The workshop improvements look great as is the lighting for those fiddly jobs. Happy Christmas See you next year
After over 25 years in business for myself. I am still learning on a daily bassis. And yes i have been caught finacially on several ocassions. As has everyone who runs a business and is honest. I wish you well for the new year and hope you can re cover some of the money owed.
Merry Christmas and properous New Year Lee. Issac and John. Glad to hear your going to tiedy up the machine shop, it is an important part of your busuness, keep people out because you will be responsible, even if they trip up of their own accord.
Happy Christmas Lee, get yourself off for the holidays, feet up and time with your family. You too Isaac and well done to you both for the great content.
Only way is to do pay by progress, agree payments for each stage up front for parts, machine work assembly and balance on collection , you document the work, customer pays, they can come check in person by arrangment. No way a customer should be out the door with his finished goods owing money . Agree any changes to quoted work and any effect on payment stages before any additional work gets done.
I’m in retail and just ordered a new till system and have to pay 60% deposit before they start building it. Ordered new petrol pumps last year and had to have 90% paid before fitting with 60% before they would place an order. If it’s custom work surly serious people won’t mind paying a large chunk up front
Lee, you should consider taking deposits. I know it’s a hassle in terms of paperwork but it’s I important to have that customer buy in. As an automotive enthusiast and customer of a local machine shop, I’m more than happy to pay for the machining or a healthy deposit up front. I know I’ll be paying at some point and I’d rather the final bill be a simpler affair. In my business when we do projects, we take 25% down before the project commences and if it’s a project that’s going to span a few months, we also invoice installments. Anyway, just something to think about. Have a good week off and we’ll see you in the new year. All the best to you, John and Issac.
Distractions within the workshop are always costly. Showing a customer you're busy gives a good excuse not to piss away an hour chatting, there's work to be done. On the business side, nothing get's dropped off at our shop without a deposit. There's too much work to do, and jobs always seem to draw out longer than anticipated, so if you want to guarantee customer's coming back for their stuff, collect cash at the start. It's easy to collect for at least the parts up front and a serious customer will understand.
When you are suicidally depressed and your brother said he wishes your next attempt would get it write , then goes on to take all your tools you worked years to get and inheritance from you. Yeah ….
First rule of business is to remain in business, carefully examining expenses and stay consistent on prices and most importantly, look after the health of the business as it is what provides for your family and fellow workers/employees. I outlined a square foot on the floor near the entrance with blue tape. If anyone asked what that was all about, I directed them to the $ number within and explained that was the cost in dollars to operate this business, per foot. It was truly an eye-opener when people understood how much it costs to run a business and include a reasonable profit.
Count your blessings! I was part of the A/V department in uni and used to video softball practices - the bloody batteries needed a back pack to cart about.
Merry Xmas. Maybe get a deposit to cover all or most of the parts needed to do a job then just collect your labour and maybe a few unforseen parts as final payment. Great videos good luck.
When you give someone a quote, it has to be a condition of the contract for the customer to stump up 50% on account for you to proceed with the job. If they don't like it, they can go somewhere else...
Overall a good year pal! Not least having Isaac who is a keeper. Communication is key with bills and debts. Not least from the customer. Stage payments after a deposit are fair both ways and weeds out the dreamers.
Great videos all year,enjoyed every one of them. And especially the real life issues with running your own business. The good with the bad. I’ve the same issue with customers that have been coming to us for years (small country Garage) everything from a chainsaw to 53seater coaches , plant machinery and agricultural machinery. Guys thinking they can just walk in anytime. Also been thinking about the booking fee upfront,not sure how that would work. The biggest problem as you say is getting paid from the odd few . Do you treat all customers the same (pay before leaving) or what. Trying to think of a sign that won’t offend people stating that all works to be paid before leaving. My father ran the business before me and it was just wrote in a book and basically pay when you want. Where do you start? Anyway keep the videos coming and all the best for Christmas and the New Year ahead Philip
Start getting a deposit which covers what you need to spend up front before you even start the engines..... that way people are financially committed to it before it happens..... Have a good Christmas all....
Start taking big deposits. If anyone can't afford a deposit? Then they can't afford to pay the end bill. It's not brutal. It's business! Have a great Christmas and look forward to seeing you and Isaac in the new year. Keep it real Lee. Always good viewing mate!
Hi Lee, i run a small engineering biz, since 2000 i get customers to either supply or pay for materials up front. it massively improved my cash flow , and was an instant indication of wether they were likely to pay for the work..I found if someone balks at paying for materials/parts then how likely are they to willingly cough up for your labour as well?...ps I always wanted a shizouka, one of the best mill ever made.
You give an estimate before work is agreed; just stipulate a 50% down payment before work start. Alongside a written agreement that on completion of work the final dated invoice to be paid within 90 days or goods will be sold to recover costs. Any losses will be minimal, or you may even be able to return some of the sale proceeds to the customer (if they ever respond). As long as you take all reasonable routes to contact the customer (with proof) you'll be legally correct.
your camera seems to be jumping a bit but not bad just let Issac hold it ,have a Merry Christmas to you and your family and John and Issac see you in the new year (you will be in that workshop over Christmas you can not keep away HO HO HO ) take care have a good one.
Ye learnt not to let the vehicle before payment, one time a guy got me to remove his engine then sent his mate to pick it up but not pay ,but I had left the engine and accessories out ,it was a year before he came back,and again tried to take the part's before he paid, 😂😅 obviously he didn't get his part's until I got paid 😂😅 thanks for sharing, all the best to you and your loved ones, Have a Merry Christmas
Customers might be reluctant to pay upfront in case the business folds before their order is delivered. Are you able to accept payments by credit card so the customer gets some protection or is that too expensive?
If Barum Engines stand by their work they should have no objection to allowing customers the option to pay with credit card to get section 75 protection. Of course the customer should also be willing to cover the credit card processing fees for the transaction.
Happy Christmas Lee, I know very little about engines, I enjoy how you run your business and the problems. I admit that I just seek out the thumbnail bits but those are the bits I enjoy. I wish you would make them easier to fins but I know why you don't.
Most of your videos uploaded seem to have a title with a problem. Landlords, customers taking you to court, not paying, etc etc. maybe there’s a way to stream line your processes. I went through similar ways with my business a few years ago. Now I have lots of processes in place through ISO9001 and 14001. It really helped me out. Not had a customer not pay or threaten not to pay in over four years now. Love the engineering you do.
I know it's not in your affable friendly nature Lee, but it's a BUSINESS. You have to set the bar for yourself up where you expect your customers to meet you... Documenting everything is a business necessity, so there are no misunderstandings, no "but I talked to..." or "I thought it was X price" and "what about a discount ?" BS. It will save you a lot of anxiety, trouble and avoid wasting your valuable time to have it in writing, and on the website so it is clear that it's a business, period. There will always be someone who thinks otherwise, so let them take their bad business elsewhere, you don't want it or need it at this stage. You're busy enough as it is, right ?
Lee, thanks for all your hard work and great cinematography over the last year, have a great Christmas and New Year, have a gret week off, see you in 2025. Congratulations to you and the team on great work and a great channel. ❤ From Yorkshire.
Get a great debt collector. We have them here and a decent one will not only find them, but make them pay interest as well so no cost to you. They suffer the harassment, pay out more money and all while you can get on with the job. If you can’t find him, they will.
Not sure about the UK, but in many countries car workshops routinely require 50% upfront for jobs that require serious investments from the workshop in parts/labor. You can always make exceptions for customers with a well established reputation, but I don't see a lot of downsides to making this a policy for you. Maybe split up to 10% upfront, once parts are ordered and in, but before building 50% and 30 days after after final invoice storage fees start? Just a suggestion. You have seen that being more strict on your customers has not had a negative effect on your business overall and I get the impression it has had a positive impact on your mental health as well. Business will be business and there will always be problems, but let them be the problems that matter to your actual business and not to people with ambitions that are larger than their wallets.
Who spends that sort off money on a standard rebuild? 10000 pound is about 20k AUD plus removal and installation big bucks hope the vehicle it's worth it
Definitely once the quote has been done as you have worked out the parts prices at least get them paid before commencing the work, at least then you know they are serious about having the work done and then if they mess about with the payment it’s only the labour and you haven’t also forked out for the parts as well, still a pain but less of a headache.
There are “safe deposit” schemes for flat rental. I am not sure but there must be something similar for commercial transactions. This would make sure you get paid as the customer pays the full invoice amount at the start of the job and it is held in the scheme until work is complete.
Yep, if you can’t afford a 50% deposit on drop off, you ain’t got the 100% on completion which would filter out most problematic customers. Also not sure if you’re able to write into contracts something along the lines of the right to sell the engine to recover costs after a fixed period of non payment?
Check with the solicitors (lawyers) to see if you need to be specific in them paying for parts vs labor on the bills. That way if they file bankruptcy or something where they say they have paid xxx and try to stiff you, the labor is a non negotiable fee that they have to pay. Build your profit in the parts also so you don’t get stuck holding the bag. On the older machines if you replace see if you can have the old machines rebuilt. Several of your older machines have multi purpose. Something like a boring / surfacing machine combo might be worth getting a new or factory reconditioned (yeah not cheap) with modern controls where you can monitor not babysit.
You should run your finances like when building a house 10% deposit at engine drop off Invoice of all parts once stripped and parts delivered Final payment when complete This way if they dont pay the parts then you can at least send them back to suppliers , and at least once they have paid for the parts then you arent stuck paying for them and holding
Great video, make them as and when you like or when something interesting pops up. This is not a criticism only my observations, have a play at the camera settings, I can see the background is not as clear and the overall picture is not as sharp and its darker, go back and look at videos you did 2 months ago, they are crystal clear, sharp and background is clear. I wish everyone at Barum engines a very happy christmas
There are specific boring and facing machines for this type of work, I'd have to look at a few channels, Dan Powell has nice stuff, Jim's Automotive, Brand, Steve Morris, etc. for some examples to watch.
Lee, If customers are serious they should pay you at least 50% of cost up front, I would. You need to get a 50% up front plan into operation mate. If customers don't like it then you have missed a bullet 👍
I've always taken enough money to cover the parts or taken the parts themselves when I've asked a garage to work on my stuff. Always seemed the decent thing to do and shows I'm serious. That said I always ask for a estimate for the rest of the work just to be sure I won't be letting anyone down. If I need another month to get the funds to hand then I won't book it in until I'm sure I won't be embarrassed. It's not unusual when these amounts of money are involved. You want the right customers, filter out the problems early.
No one should be allowed unaccompanied in your business. YOU HAVE A LIABILITY UNDER THE HEALTH AND SAFETY ACT FOR ANYONE YOU KNOWINGLY IS IN YOUR AREA. Be firm. No ifs or buts. Keep people in an area designated by you after they contact you first to obtain access.
The dynamic range of the new camera isn’t the best, not sure if it can be tweaked in the settings, but the lights and bright areas are over exposed and the dark areas under exposed 🤷♂️
Re wobbly cam, attach a tripod and carry it. The inertia of the tripod makes it very stable in the pitch and roll directions leaving you free to yaw (pan left-right)
Look on the bright side Lee ... 18 months ago you would have been daft enough to let them take the engines away without paying! At least you still have the engines and can flog them to recover your cash! Have a good xmas!
A few years ago I had about £10,000 bodywork done on my vehicle, paid in four parts as the work went along. That's the only way to go. Both parties were entirely happy with that, they kept me informed of progress with photos, if only that we could consult on the way. Result? I got exactly what I wanted , I paid each stage immediately, and got top quality work done in good time.
I think a good plan going forward would be a stepped paying plan. You quote for strip down and estimate cost of rebuild, then the customer pays for the strip down. Next you order the parts and before fitting the customer pays for that, next they pay for the machining quote, and finally when rebuilt they pay the final bill.
Or something along those lines. Hope that helps in some way? Merry Christmas and a Happy New Year to you all.
There are plenty of accounting packages that enable you to: estimate a job, send the estimate by email, ask the customer to approve the estimate electronically, send progress payment invoices by email, track the payments, track timesheets and parts costs, run project reports, run sales reports, prepare tax returns, etc.
Write into customer contract that in the event of non payment within a specified time frame. Their engine / product will be sold to recover your expenses for that said item. Have this drawn up by a legal eagle so it is an official document. By doing this you will recover most of your expenses laid out. And default payments can legally be recovered.
Make sure that if you have an outside container that your insurance is informed and that you can claim for theft or damage. This is essential if you're thinking about storing customer property in that container.
Agreed. And make it impossible to lift ! The organised gangs from you know where, have plenty of heavy lifting gear 😐
If it quacks like a duck, walks like a duck, mate, it's a duck! You can't get a builder to do nothing until he's solvent enough to buy materials. The solvency comes from the owner that wants the work done... asking for an eye watering deposit before any reconditioning work commences, keeps the bastards kosher, and their intentions pure, merry Christmas Lee, may all your surprises be pleasant ones...
Uncollectible debt is frequently the death of many small businesses, be cautious.
When I was in the service business, in my state of California, we are allowed to collect 50% up front and usually all the parts cost. This is reasonable and if a customer has a problem with it, you don't need them.
I agree. We got stung holding $12,000 from a property developer who went bankrupt. We had been left hanging for much smaller debts in the past when client’s businesses had collapsed but that really stung and a lot of the amount was for reimbursement of money we had paid out. By itself, it wasn’t going to be a death blow but if we had that happen a few times, we would have been well under water.
Always collect up front any materials costs and when I was in business, I was allowed by regulation, to collect 1/2 the labor. Please consider this as brotherly advice. On another note, beware of a classic scam of a friend of a customer paying for something in arrears. For example... the LR V6 you have 11K invested in. If, eventually, you need to sell it on, beware of someone answering too soon after it's been listed for sale. The original punter who owns (defaulted) the engine will send along his pal and pay less than is owed, as you'll probably discount it to move it out of your hands. My husband works at a local warehouse club called Sam's Club. A very common scam is for someone to return an expensive appliance, such as an LED Television, which by law, cannot be re-sold as new, so Sam's cuts the price and the original customer sends a relative, or friend to buy it and basically steal it for the discount. Sorry for the long post, but I wanted to share. Happy Holidays!
Rapid swings back and forth are what cause the dizziness issue the most for me, but the new camera has much better clarity.
As for the work/engines, put on your invoices up front, something like, any engines not picked up, or paid in full, are subject to auction after 6 months, or whatever is legal in your area.
And/or 50% parts up front, 50% parts mid build, labour due on completion. If you don’t pay your 50% mid stream payment…all work goes to the back of the line and won’t continue till payment received.
During my career in the motor trade, I have requested a minimum of 30% of the agreed and signed estimate, with as others have stated, the disassembly is fully paid for first. Completion date of work also to be noted.
Thanks Lee -- have a great Christmas yourself with the family.
Stage payments are one of the best ways. Stage 1, strip, clean and assess. Stage 2 machining trial build and parts. Stage 3 final build and materials.
keep up the great work and enjoy Xmas, might be worth doing a stage payments plan so you don't get too far into the work, bit more admin but helps break the bill down for the customer, see you in 2025!
Rover K Series Engine: Stop chasing this punter, as it drains your energy. Instead send this to the Court, so you can get a summary judgement court order.
Great video as always, hopefully you’ll be able to recover some of the money. Didn’t bother watching the last 2 clickbait videos as thankfully I knew nothing was going to come of the landlord emails.
Merry Christmas guys! Love the channel and looking forward to 2025!
Top show.Thank you very much.All the best for 2025.Nigel New Zealand
Workshop improvements. It's great to hear that you have some plans to upgrade the workshop and to improve your work processes. The door bell is a great start. Have you considered converting the front office into a client meeting room, with a meeting table, chairs, the coffee machine and some nice images of recently completed engine projects or some live GoPro feeds from inside the clean room that display on a wall mounted TV ( you can relocate the one from inside the clean room ) This will remove the need for customers to wander around your workshop.
At my machine shop we require 20% down on anything up to $1,000. Anything over that we required 25% down and any parts needed to be purchased that do not fit under the 25% deposit is additional that they need to come up final machine work and assembly will be paid for at the end when it's picked up
Definitely agree on the cash upfront idea I had to pay cost of parts bill when I had my Subaru engine done at pole position job was outstanding Shar explained i was totally ok with it just settled the labour cost when the job was done
I'm usually a complainer but you have much improved on how you come across
I did exactly what you are proposing to do with your office. At first it was ok. Come the summer, it was horrendously hot, uncomfortable. I had to fit an a/c unit to make it bearable, then the noise from the a/c unit was a pain. Good luck and good health for 2025
Mini-splits are usually very quiet, plus, you don't need to cut a big hole into a wall you don't own!
If you install a modern split system AC unit, into the office, with the main pump located outside, you will hardly hear the unit running when you are in the office. Plus how many days of the year does it reach over 23 degrees Celsius in the UK?.
Have a good holiday mate. Looking forward to seeing you at Castle Coome
Well done Lee and a Merry Christmas 👍🍷
Great vlogs Lee, enjoying content. If we don’t see ya before, Merry Christmas to you and yours and hopefully a better 2025, same too to Issac and John. Stay well.
Just a well-wish for the coming year, and good holidays to you all and yours. I've enjoyed the previous year's output, and look forward to whatever you proffer us. (It keeps us from thinking/brooding on what's going on in our USA!) Thank you for all. Your plans sound terrific.
Possibly contact a solicitor and see if it is legal to add to your terms and conditions that if the final bill is not settled with 90 days of final invoice Berum Engines reserves the right to sell the engine/head/block whatever to recoup your outlay on Labour and parts.
I am sure you could find customers for the k series and the V8.
Merry Christmas when it comes round.
Sue these people. Unlikely they are going to be multiple long term customers. Having bailiffs getting access to you home will probably shake them up .
I had an engine rebuilt in my triumph cost me 7k this did include taking the old one out and putting the rebuilt one back in,the company I used billed me at every stages of 2k and took 1k to start the job, so no work till I payed the invoice at each stage. Best for both of us in my view, I would recommend doing it this way that way the risk is a lot less and can give the customer time to say hold the job till I can pay the next bill
That can work to your disadvantage just imagine your engine is nearly finished you have paid most of it,
Then the engineering company goes bust .
You have lost everything.
Just saying.
@@Paul-pb3vq I understand your point but there are a number of contract clauses that ensure you don't lose everything and have the right to remove the material "owned" (the engine and any new parts paid for). Any administrator will be aware of these and will ensure the products are made available to the rightful owner. There are processes that need to be implemented by the supplier which unfortunately are likely to increase cost. A classic double edged sword.
@@Paul-pb3vq well you don't know much, any liquidation company will look to the owners of the engine first to get the money that is owed on it for work all ready done then you can get your property back, after that they will sell off what ever they can so the other companies that are owed money get some back but there are always losers, like the employee they only gets anything owed to them if after everyone else gets there's often nothing as the pot is empty, I know 😢
I did the same when I had my TR4a engine rebuilt at Reece Brothers ! Great place to do business with 👍🇬🇧
@@oildrag they don't have a good reputation, when I talked to them, I got the impression of DIY mechanics so sent it to Rob sport
A great year well recorded. Just look at the quality work you and the team have done. The workshop improvements look great as is the lighting for those fiddly jobs.
Happy Christmas
See you next year
After over 25 years in business for myself. I am still learning on a daily bassis. And yes i have been caught finacially on several ocassions. As has everyone who runs a business and is honest. I wish you well for the new year and hope you can re cover some of the money owed.
Nice vid, hope you and your family have a super Christmas and a great New Year. Have a nice break and chill out!
Merry Christmas and properous New Year Lee. Issac and John. Glad to hear your going to tiedy up the machine shop, it is an important part of your busuness, keep people out because you will be responsible, even if they trip up of their own accord.
Hello Lee and gang I want to wish you a very happy Christmas and a great new year stay positive 👍
Happy Christmas Lee and all at barum engines
Happy Christmas Lee, get yourself off for the holidays, feet up and time with your family. You too Isaac and well done to you both for the great content.
Only way is to do pay by progress, agree payments for each stage up front for parts, machine work assembly and balance on collection , you document the work, customer pays, they can come check in person by arrangment. No way a customer should be out the door with his finished goods owing money . Agree any changes to quoted work and any effect on payment stages before any additional work gets done.
I’m in retail and just ordered a new till system and have to pay 60% deposit before they start building it. Ordered new petrol pumps last year and had to have 90% paid before fitting with 60% before they would place an order. If it’s custom work surly serious people won’t mind paying a large chunk up front
I wish you guys a VERY merry Christmas, and a very nice party for celebrating New Years Eve!!!!
Greetings from the Netherlands.
Lee, you should consider taking deposits. I know it’s a hassle in terms of paperwork but it’s I important to have that customer buy in. As an automotive enthusiast and customer of a local machine shop, I’m more than happy to pay for the machining or a healthy deposit up front. I know I’ll be paying at some point and I’d rather the final bill be a simpler affair. In my business when we do projects, we take 25% down before the project commences and if it’s a project that’s going to span a few months, we also invoice installments.
Anyway, just something to think about. Have a good week off and we’ll see you in the new year. All the best to you, John and Issac.
Distractions within the workshop are always costly. Showing a customer you're busy gives a good excuse not to piss away an hour chatting, there's work to be done. On the business side, nothing get's dropped off at our shop without a deposit. There's too much work to do, and jobs always seem to draw out longer than anticipated, so if you want to guarantee customer's coming back for their stuff, collect cash at the start. It's easy to collect for at least the parts up front and a serious customer will understand.
It's worse when family does that
Family and so called friends??
When you are suicidally depressed and your brother said he wishes your next attempt would get it write , then goes on to take all your tools you worked years to get and inheritance from you. Yeah ….
First rule of business is to remain in business, carefully examining expenses and stay consistent on prices and most importantly, look after the health of the business as it is what provides for your family and fellow workers/employees. I outlined a square foot on the floor near the entrance with blue tape. If anyone asked what that was all about, I directed them to the $ number within and explained that was the cost in dollars to operate this business, per foot. It was truly an eye-opener when people understood how much it costs to run a business and include a reasonable profit.
Merry Christmas Barum engines.
Count your blessings! I was part of the A/V department in uni and used to video softball practices - the bloody batteries needed a back pack to cart about.
Merry Xmas. Maybe get a deposit to cover all or most of the parts needed to do a job then just collect your labour and maybe a few unforseen parts as final payment. Great videos good luck.
When you give someone a quote, it has to be a condition of the contract for the customer to stump up 50% on account for you to proceed with the job. If they don't like it, they can go somewhere else...
Overall a good year pal! Not least having Isaac who is a keeper.
Communication is key with bills and debts. Not least from the customer. Stage payments after a deposit are fair both ways and weeds out the dreamers.
Great videos all year,enjoyed every one of them.
And especially the real life issues with running your own business. The good with the bad.
I’ve the same issue with customers that have been coming to us for years (small country Garage) everything from a chainsaw to 53seater coaches , plant machinery and agricultural machinery.
Guys thinking they can just walk in anytime.
Also been thinking about the booking fee upfront,not sure how that would work.
The biggest problem as you say is getting paid from the odd few .
Do you treat all customers the same (pay before leaving) or what.
Trying to think of a sign that won’t offend people stating that all works to be paid before leaving.
My father ran the business before me and it was just wrote in a book and basically pay when you want.
Where do you start?
Anyway keep the videos coming and all the best for Christmas and the New Year ahead
Philip
Happy Xmas to all of you, love the videos
People who had money a few years ago are going skint and unfortunately are walking away from these engine rebuilds.
Hope you and Issac have a good Christmas and a great break 👍🥸
Start getting a deposit which covers what you need to spend up front before you even start the engines..... that way people are financially committed to it before it happens.....
Have a good Christmas all....
Start taking big deposits. If anyone can't afford a deposit? Then they can't afford to pay the end bill. It's not brutal. It's business! Have a great Christmas and look forward to seeing you and Isaac in the new year. Keep it real Lee. Always good viewing mate!
Happy Christmas Lads
Hi Lee, i run a small engineering biz, since 2000 i get customers to either supply or pay for materials up front. it massively improved my cash flow , and was an instant indication of wether they were likely to pay for the work..I found if someone balks at paying for materials/parts then how likely are they to willingly cough up for your labour as well?...ps I always wanted a shizouka, one of the best mill ever made.
You give an estimate before work is agreed; just stipulate a 50% down payment before work start.
Alongside a written agreement that on completion of work the final dated invoice to be paid within 90 days or goods will be sold to recover costs.
Any losses will be minimal, or you may even be able to return some of the sale proceeds to the customer (if they ever respond). As long as you take all reasonable routes to contact the customer (with proof) you'll be legally correct.
More and more people not willing to pay at the moment. I’ve had a rough month with people not paying when the invoice lands. 😠
your camera seems to be jumping a bit but not bad just let Issac hold it ,have a Merry Christmas to you and your family and John and Issac see you in the new year (you will be in that workshop over Christmas you can not keep away HO HO HO ) take care have a good one.
Have a wonderful Xmas and new year ,look forward to seeing the new videos next year 👍👍👍👍
Ye learnt not to let the vehicle before payment, one time a guy got me to remove his engine then sent his mate to pick it up but not pay ,but I had left the engine and accessories out ,it was a year before he came back,and again tried to take the part's before he paid, 😂😅 obviously he didn't get his part's until I got paid 😂😅 thanks for sharing, all the best to you and your loved ones, Have a Merry Christmas
Merry Christmas you guys. You deserve a well earned holiday rest, enjoy!
Customers might be reluctant to pay upfront in case the business folds before their order is delivered. Are you able to accept payments by credit card so the customer gets some protection or is that too expensive?
50% labor is customary, plus 100% on special order parts.
Not too expensive but with credit card the payer has too many rights which Barum would find expensive and difficult to fight.
If Barum Engines stand by their work they should have no objection to allowing customers the option to pay with credit card to get section 75 protection. Of course the customer should also be willing to cover the credit card processing fees for the transaction.
Happy Christmas Lee, I know very little about engines, I enjoy how you run your business and the problems. I admit that I just seek out the thumbnail bits but those are the bits I enjoy. I wish you would make them easier to fins but I know why you don't.
Most of your videos uploaded seem to have a title with a problem. Landlords, customers taking you to court, not paying, etc etc. maybe there’s a way to stream line your processes. I went through similar ways with my business a few years ago. Now I have lots of processes in place through ISO9001 and 14001. It really helped me out. Not had a customer not pay or threaten not to pay in over four years now. Love the engineering you do.
What have we learnt from the most recent 2x non payments??
That a new camera will solve all these problems lol
People doing a Lord Lucan on you this year, just disappearing on you 😂😂
Do stage payments we do that on the boats we build , brake it down to 4 stage payments with the final payment when the is ready to ship.
Merry Christmas and a Happy New Year to Everyone 🌲❤👍
I know it's not in your affable friendly nature Lee, but it's a BUSINESS. You have to set the bar for yourself up where you expect your customers to meet you... Documenting everything is a business necessity, so there are no misunderstandings, no "but I talked to..." or "I thought it was X price" and "what about a discount ?" BS.
It will save you a lot of anxiety, trouble and avoid wasting your valuable time to have it in writing, and on the website so it is clear that it's a business, period. There will always be someone who thinks otherwise, so let them take their bad business elsewhere, you don't want it or need it at this stage. You're busy enough as it is, right ?
Take it easy Captain edit 😂
Get enough to cover your cost it's just how it is nowadays. I'm in the building game and I've had to do this for years✌️🐸👌
PS: Auction off that unpaid engine, I'll start the bidding at £200. 😁
Lee, thanks for all your hard work and great cinematography over the last year, have a great Christmas and New Year, have a gret week off, see you in 2025. Congratulations to you and the team on great work and a great channel. ❤ From Yorkshire.
Great idea to buy some modern equipment
Its always the few that spoil it for the many.
Get a great debt collector. We have them here and a decent one will not only find them, but make them pay interest as well so no cost to you. They suffer the harassment, pay out more money and all while you can get on with the job. If you can’t find him, they will.
Lee don't forget the lads at serdi uk based in uxbridge for your machines they are very good at what they do.
Make sure you get the good biscuits.
Merry Christmas and a happy New Year Lee, Issic and your families.
Not sure about the UK, but in many countries car workshops routinely require 50% upfront for jobs that require serious investments from the workshop in parts/labor. You can always make exceptions for customers with a well established reputation, but I don't see a lot of downsides to making this a policy for you. Maybe split up to 10% upfront, once parts are ordered and in, but before building 50% and 30 days after after final invoice storage fees start? Just a suggestion. You have seen that being more strict on your customers has not had a negative effect on your business overall and I get the impression it has had a positive impact on your mental health as well.
Business will be business and there will always be problems, but let them be the problems that matter to your actual business and not to people with ambitions that are larger than their wallets.
Who spends that sort off money on a standard rebuild? 10000 pound is about 20k AUD plus removal and installation big bucks hope the vehicle it's worth it
Definitely once the quote has been done as you have worked out the parts prices at least get them paid before commencing the work, at least then you know they are serious about having the work done and then if they mess about with the payment it’s only the labour and you haven’t also forked out for the parts as well, still a pain but less of a headache.
Happy Christmas
There are “safe deposit” schemes for flat rental. I am not sure but there must be something similar for commercial transactions. This would make sure you get paid as the customer pays the full invoice amount at the start of the job and it is held in the scheme until work is complete.
Enjoy the videos, Have a good Christmas, You all and your family's. Danny
Yep, if you can’t afford a 50% deposit on drop off, you ain’t got the 100% on completion which would filter out most problematic customers. Also not sure if you’re able to write into contracts something along the lines of the right to sell the engine to recover costs after a fixed period of non payment?
Dont advertise whats in the container when you get it, merry christmas and happy nww year, all the best for 2025
Check with the solicitors (lawyers) to see if you need to be specific in them paying for parts vs labor on the bills. That way if they file bankruptcy or something where they say they have paid xxx and try to stiff you, the labor is a non negotiable fee that they have to pay. Build your profit in the parts also so you don’t get stuck holding the bag.
On the older machines if you replace see if you can have the old machines rebuilt. Several of your older machines have multi purpose. Something like a boring / surfacing machine combo might be worth getting a new or factory reconditioned (yeah not cheap) with modern controls where you can monitor not babysit.
Give them a weeks warning that if they don't pay in full within that time they will both be sold to recover costs
Evening Lee and barum engines thinking of getting 1series bmw 2006 2008 I ear what your experience on these engines good or bad thanks stu
You should run your finances like when building a house
10% deposit at engine drop off
Invoice of all parts once stripped and parts delivered
Final payment when complete
This way if they dont pay the parts then you can at least send them back to suppliers , and at least once they have paid for the parts then you arent stuck paying for them and holding
It's all in the terms and conditions, Unless collected and paid for in 6 months from date of invoice, It will be disposed of.
Great video, make them as and when you like or when something interesting pops up. This is not a criticism only my observations, have a play at the camera settings, I can see the background is not as clear and the overall picture is not as sharp and its darker, go back and look at videos you did 2 months ago, they are crystal clear, sharp and background is clear. I wish everyone at Barum engines a very happy christmas
For any job over £ 2k I ask 50%deposit upfront before start, got burnt too many time with those kind of customers
There are specific boring and facing machines for this type of work, I'd have to look at a few channels, Dan Powell has nice stuff, Jim's Automotive, Brand, Steve Morris, etc. for some examples to watch.
Lee, If customers are serious they should pay you at least 50% of cost up front, I would. You need to get a 50% up front plan into operation mate. If customers don't like it then you have missed a bullet 👍
I've always taken enough money to cover the parts or taken the parts themselves when I've asked a garage to work on my stuff. Always seemed the decent thing to do and shows I'm serious. That said I always ask for a estimate for the rest of the work just to be sure I won't be letting anyone down. If I need another month to get the funds to hand then I won't book it in until I'm sure I won't be embarrassed.
It's not unusual when these amounts of money are involved. You want the right customers, filter out the problems early.
No one should be allowed unaccompanied in your business. YOU HAVE A LIABILITY UNDER THE HEALTH AND SAFETY ACT FOR ANYONE YOU KNOWINGLY IS IN YOUR AREA. Be firm. No ifs or buts. Keep people in an area designated by you after they contact you first to obtain access.
It's sad days when you are having to get money up front before working on engines.
The dynamic range of the new camera isn’t the best, not sure if it can be tweaked in the settings, but the lights and bright areas are over exposed and the dark areas under exposed 🤷♂️
Re wobbly cam, attach a tripod and carry it. The inertia of the tripod makes it very stable in the pitch and roll directions leaving you free to yaw (pan left-right)