Quote:
Originally Posted by 71RS/SS396
I know zilch about the specs of Mario's engine but some of the boosted stuff we do is so specialized that there's only 1 vendor that makes the part you need so you're stuck with them for better or for worse and they don't just keep this stuff on the shelf, it's made to order.
What good does the contract, po,....whatever you want to call it do for me? If the guy runs out of money taking him to court and losing more money is a waste of time and money since he has no money to pay. From my point of view there's nothing but negatives with a contract because it could be a sign of someone that is going to use the contract to avoid payment or sue you later. We just finished an engine that the guy micro managed and changed his mind for what he wanted at least 5 times during the build so we had to go back and redo some things more then once, he would call everyday and sometimes multiple times a day, I didn't even charge him on some of the redo stuff or all the phone time and then he bitches about the labor bill at the end and wants to negotiate it, we made no money on the engine, he was not happy, so no one won,
. If I had a contract I would likely still be sitting on yet another engine someone didn't want to or couldn't pay for and could be in court trying to defend myself for doing what the guy asked for. I'm not saying Mario would do this but there are people who would so imho it's best to just avoid the potential headache.
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Tim,
I understand what you are saying for sure. I think one of the issues is you may not have a clear understanding of the PO process. It is a two way street. The terms on the PO including Payment terms more importantly for you are there to protect both parties. The contract requires the customer to pay for goods and services rendered. Court is not always the only course. You can also turn claims over to collections. you get money and they get the job of chasing the customer. Quite a few people move when credit rating is threatened. That being said, you are correct, if taking this route or court is not something you are willing to do, then the contracts mean nothing for either side. If you look at Marty's post, that is how most of the business world works. It seems this car industry has it's own set of rules. With the examples you gave above, why are you still in this business doing things the same way. It's always been said that people that continue to do things the same way and expect change are in for a huge disappointment. Rather than than abruptly saying I don't want your business if you show up with a PO or contract, a simple negotiation could really pay off. When you are talking these highly specialized, expensive engines it would not be out of place for you to ask for an escrow account be setup at a bank that can be drawn on when milestones are hit. Also, when the customer changes his mind, you send out revised quotes and receive revised PO's or whatever you have in writing. Verbal deals are the dangerous ones. Communication, documentation and general good business practices will go further than anything.
All that being said, I hope you don't take my comments in a negative way. I am simply trying to add perspective from outside the car world because it truly runs on its own set of rules it seems. I love this industry and hobby and do not want to see it crash from bad deals and people loosing tons of money on these bad deals. Customers or vendors. I am by no means an expert and am only providing my opinions. You guys are one of the most respected shops in the industry and I respect what you have to say on the subject. Hopefully just these exchanges will help educate some people allowing them to have better experiences in this community.
