BUSINESSNEWS
Teaming Up to Increase Installer Profitability
WHO DOES A DEPOSIT BELONG TO ?
Covid 19 hasn ’ t finished with us yet it appears ; now we have new strains and the race against time to vaccinate . We must take care of ourselves , our businesses , and our customers .
Anthony C Jones FIAM FInstSMM , Chairman
» OF VITAL INTEREST IS the situation of deposits paid by customers . As lead times extend , we need to be clear about principles here . Who does the deposit , taken for a bespoke product belong to ? The Federation ’ s Commitment to Good Practice states :
“ Deposits may be taken due the bespoke nature of the goods produced . The maximum deposit acceptable by a Member in respect of any Contract , is 50 % of the Contract value . All deposits must be considered as the property of the Customer , until 50 % of the installation has taken place .
The Member will not use deposits received for the general running of the business , and will keep a monitored record of deposits in hand on a monthly basis , or use a separate bank account to keep these deposits isolated from the operational business account ( s ).
The Member undertakes to ensure the enterprise has sufficient capital and reserves to properly finance its current and anticipated turnover and to seek proper , professional advice , if necessary , in this respect .”
The Government guarantees investments up to £ 85,000 per financial institution and this includes individuals and small businesses . Accounts separate from the account ( s ) used for the day-to-day running of the business can and should be set up to hold these deposits . A Deposit Holding Account adding deposits as they are received and being reduced as installations are started will keep this in order .
If you need any further advice about setting this up , please let us know .
‘ If glazing companies do not take care of customers ’ deposits it will be to the detriment of the industry ’
Great difficulties may lie ahead . If glazing companies do not take care of customers ’ deposits it will be to the detriment of the industry and will drive everyone into the hands of credit card providers and insurance companies . You can act ethically and stand alone with the best of principles .
» FIT SHOW HAS TEAMED up with Business Pilot , the cloud-based ERP / CRM system for fitting and installation companies , to develop a series of guides to help installers increase profitability .
The ‘ WorkSmart ’ series will focus on the data that installation businesses should be extracting to help them streamline operations , making them more profitable . ‘ WorkSmart ’ will run monthly in the lead up to FIT Show ’ s new 26 - 28 September 2021 dates , when the UK ’ s number one event for the glass and glazing industry will return to the NEC .
The first in the series , ‘ WorkSmart - Are you profitable ?’, uses exclusive data and insight from the Business Pilot team to challenge installation companies into looking beyond the order book and analysing if they are actually more profitable , or just busy .
Speaking about the campaign with Business Pilot , FIT Show event director , Nickie West said : “ A key theme for FIT Show 2021 will be helping our audience to do better business and , ultimately , improve their bottom line . We recognise that to deliver true value , above and beyond the three physical days of the event , we have to look at new ways to deliver content to our audience .
“ We are always looking at new and innovative ways to work with our exhibitors to extract the information that will add the most value to our audience . Whilst visitors will be able to see Business Pilot at FIT Show in September , we wanted to work with them to develop the co-branded ‘ WorkSmart ’ series to start adding value before visitors walk through the halls . We ’ re excited to announce the launch of this series .”
Elton Boocock , Managing Director , Business Pilot , said : “ We have seen how radically things can change in the last 12-months and it ’ s really important that as businesses , we remain agile , adapt to those challenges .
“ The WorkSmart series is about understanding how the commercial landscape has shifted and how installers can adapt to those changes , ultimately making their businesses stronger and more profitable .
“ We ’ re delighted to be able to partner with the FIT Show , which is itself a case in point of an organisation which is adapting to change , and we look forward to catching up with the industry in person in September .”
www . fitshow . co . uk
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