Anyone here have friends that offer them? I have a friend, that occasionally, is offered to be paid in cash. Sometimes its a few hundred, sometimes it's tens of thousands covering labor and materials. Anyone know what percentage their friends are offering for said discounts? Other than obvious things, any reason my friend shouldn't accept loads of cash??? Thanks
Are you talking about just paying with cash legitly with a invoice or cash under the table / stick it in your pocket ?
You take the cash, hand over the suitcase full of nose candy and friends of the purchaser robs you of the cash. IRS sometimes doesn't like you taking cash.
When I was in new construction, the discount was around 10%. Sometimes more, depends on the customer and the work being done. And how bad they wanted cash at the time.
There once was a guy named Al. Al killed people and had people killed. Al went to Alcatraz. Not for killing people.... Al went to Alcatraz for tax evasion. Don't eff with the IRS.
I had a tree cut down and chopped up for 2/3 the initial when I asked what the no invoice cash price was...
If it's for materials I wouldn't want cash. Later on you need to account for where the job those materials are going to so they can be expensed. Very large amounts of cash are something the IRS may be interested in as others have said.
I know a guy who can handle the money. Just call my buddy Dennis. IF you...I mean your buddy...isnt effing the IRS then there is no cash discount. Thats the only reason to give one. Oh and cash discount means CASH...not a bloody check. Some people dont understand that.
Depends how tight they are on cash flow, what time of the day it is, day of the week, etc. There is a big advantage to the business cash flow if they don’t have much or not even enough to cover the check before it clears. Plus if someone is paying by cc no fees, etc. Also a risk to it as well but that’s a given.
I get asked every day if there's a cash deal. I've found that most people just use it to negotiate, but when it's time to pay they are digging in their pockets for a card. After a few times of me raising the price above the original price and explaining that a cc or debit card is not cash and pissing them off, now I just say it doesn't matter. I've also had issues with my bank depositing cash close to 10k a few days in a row. They called it structuring deposits. I had to go back and provide invoices to prove where the money came from.
People asking for discounts get charged a higher rate. The increase covers the overhead required for dealing with said people. It’s called a personality tax.
Usually it's at least a discount to the payer of what the business would save on CC fees on their end - 2-3% or more if they have a suck ass company.
We do a lot of over 10k deposits depending on the time of year and the event(s), it's not a big deal to fill out the form.