Do you invoice your customers clients direct and should you?

[Martin Pearson]

I use to do a bit of work for other companies and never really had a problem with invoicing them directly if I was asked to. Usually found that my customer had already told them that would be happening so wasn’t to much of a problem and they knew what to expect.
Only had a problem with payment once that I can remember and my customer sorted it out right away. He was actually worried that I wouldn’t do any more work for him.

Don’t forget that when they use you for a job it is still their reputation on the line so once they have found a tradesman whom is good at what they do then they try to keep them happy.
If you have a good customer then I wouldn’t worry to much about damaging your relationship as they will be thinking the same.

[Phill Fenton]

I know where you’re coming from Warren and I have questioned why I should be doing this?

Your verbal agreement/contract is with the direct customer – not his customer so I would always question your right to invoice someone else on your customers "say so".

When faced with this I point this fact out and ask that the person to be invoiced should contact me direct to authorise the go-ahead before carrying out the work.

If the work is already done – then your contract is with your customer and I would invoice him.

[Warren Beard]

Cheers guys, like I said I usually do it as I have a good relationship with my customers and only once had an issue trying to chase payment through my customer (who ended up paying it anyway as it was taking so long)

I just find it’s always a last minute thing, why can’t they say upfront they want it invoiced to somebody else?

and I do feel it’s only right to invoice the person who ordered it, sometimes it could seem like they were passing the buck to us to have to chase the money for a job they ordered.

So far it’s been fine but wanted to get others opinions in case I was treading a risky line as I am too easy just to accept it.

cheers

Warren

[Martin Pearson]

Don’t think it has ever been last minute with me, maybe worked a bit differently but I had customers who were builders/shop fitters and they would always say to the customer at the start what they used me for signs so a bit more like a recommendation in a way, they use to collect and fit themselves but most of the time I had spoken to their customer to agree artwork etc. before I did any work.

The PR companies and other sign companies that I use to do work for I use to invoice them and get paid by them, they probably added their own mark up to the job :lol1:

[David Rowland]

Warren, if you wouldn’t mind, can you invoice Martin for that 2 x 5mtr sign he ordered last week… many thanks and when can you deliver it for me Warren? I know Martin will pay for the special next day 9am delivery :lol1:

[Warren Beard]

It doesn’t happen that often but when it does it’s usually last minute and usually a design agency.

Happened twice this week and that’s why I thought I would mention it, both design agencies, one was a roll up banner she ordered for next day delivery, then when I phone her to tell her it’s ready she says can I invoice the customer direct (should have said "sure, you’re my customer, here’s the invoice direct" 🙄 )

The other designer was a big job worth a few grand, as I was finishing up on the 3rd day she said "you may as well invoice them direct, saves it going through my books"

Lucky I knew who the customer was as he was on site most of the time and chatted a lot and is a good guy so again didn’t have a problem with.

Anyway like I said I was just curious if it was normal practice and any pitfalls to watch out for that I haven’t thought of.

cheers

Warren

[Martin Pearson]

Dave, I didn’t realise that you were one of Warren’s good customers :lol1:

No problem sending me an invoice either, I have just the right filing cabinet for it to go in 😉

[Jason Xuereb]

Had this happen once. This was before we started doing full prepayment before jobs. Turned out we lost half the invoice as the company we were asked to invoice to was just really a shell company with all hidden information, no assets no real contact information.

Lesson learned.

[Shane Drew]

quote Phill Fenton:

I know where you’re coming from Warren and I have questioned why I should be doing this?

Your verbal agreement/contract is with the direct customer – not his customer so I would always question your right to invoice someone else on your customers “say so”.

When faced with this I point this fact out and ask that the person to be invoiced should contact me direct to authorise the go-ahead before carrying out the work.

If the work is already done – then your contract is with your customer and I would invoice him.

I’m with Phill. I no longer invoice another party unless that party confirm they are OK with it. I insist on written orders now too. If their instructions are in writing to charge someone else, then I may consider it, but usually I’ll insist that they work it out with their client instead of me having to take the risk.

A few years ago I had a company I did a lot of work for order magnetic signs for their buses, and they asked me to send the bill to the subcontract driver. He has never paid me to this day, arguing he didn’t order them, and the bus company will not pay because it is the subcontractors responsibility to pay for signage.

Funny thing, I see the bus most days, and my signs are on the side of the bus….

[Bob Clarkson]

I guess anything that involves a 3rd party, another contact etc, is just another chance for a problem. I’m sure in a lot of cases it’ll work, but with the end user essentially being a 3rd party, why would your customer get involved at all if they made nothing out of it.

I’ve supplied to many people who in-turn make a profit by selling on, but my deal is with them, not their customer. If they’ll put the effort in to sell the stuff, as long as I get what I want the profit they make doesn’t matter to me.

It’s something I’ve never had happen or been asked to do. I’m not saying this is one, but as over the next year or two we go into recession there’s going to be a whole range of odd ways of dealing coming up that we must all be aware and on top of.

This could purely be down to cash flow on the customer front, it’s easier for them to pass it over to end user and earn nothing, than do the outlay or stand the cost for a month to make a slight profit.

[Chris Wool]

quote :

This could purely be down to cash flow on the customer front, it’s easier for them to pass it over to end user and earn nothing, than do the outlay or stand the cost for a month to make a slight profit.

or the customer is a known bad payer

i have done this for some trade type customers but only after conformation of price etc. with the guy paying.