If you are a non-operator owner of many work trucks, you should keep your business credit card with you not leave it in one of the trucks. You should not issue them to employees without strict guidlines. Employees may tend to abuse credit cards by buying things that are not an emergency such as tires that are over priced instead of simply plugging a hole in a flat or spraying fix-a flat into the valve stem.
Here is a story:
A franchisee's manager who we'll call 'Arnold' had a blow-out in one of the rear tires on the duallies. It turned out the valve stem ripped out. He drove about two miles to a tire shop and decided to take care of the problem. The tires were one-half worn, good for another 10,000 miles or one-half year. When he got to the tire shop, he could have:
Purchased a valve stem for $2.50
Put a tube in the tire for $10.00-$15.00
Or bought a used tire that was one-half worn to match the other set.
Arnold wasn't sure if he had destroyed the structural integrity of the tire by driving the two miles to the tire shop. So he decided to replace the tire and not just the valve stem. Since he had a company credit card and it wasn't his money, he purchased a new tire for $75.00 plus $5.00 mounting and tax plus $2.00 for balancing. About $90.00 in all. Unfortunately, it didn't match the other three rear wheel tires and the tire man said "Tell you what I'm going to do!" He sold Arnold what he called real truck tires, four (4) of them for $350.00 calling them 'on sale.' The four used tires were taken off and thrown into the used pile. Arnold drove off with four new tires.
The next day, Steve, another franchisee noticed his tires needed to be replaced. He owned the franchise that bordered Bill's franchise. (Bill is Arnold's boss.) He drove to Herb's tire shop where Arnold went the day before. Herb's manager that helped Arnold into a new set of tires figured Steve was an easy kill but this time the $90.00 per tire became $109.00 a tire and a set of four was only $440.00 on 'super sale' of course. Steve also had a company credit card, but unlike Arnold, Steve had to pay the bill. Steve asked about used tires. The manager of the tire store tried to persuade Steve for ten minutes with talk on the safety of new tires. Meanwhile, Steve's helper had already signed up three car washes and had completed one. The manager of the tire shop gave up in frustration on trying to close the big sale and said "I have four used tires the right size but they are in good shape so I need $30.00 each plus $5.00 for mounting and tax and $2.00 for balancing." Steve laughed and said "No tax. I pay cash and it will have to be more like $20.00 per tire including everything. The manager said "I'll have to ask Herb." Herb said "Cash. Hell yes! Put them in the front of the line."
By this time Steve's worker was wiping down his third car. $80.00 for four tires is a good deal, right! Right, but Steve asked Herb if he wanted his car washed and waxed. Herb said "How much?" Steve said "How about $50.00 off my used tires?" Herb said "Great." So Steve washed and vacuumed Herb's car and then brought his truck into the work bay. Steve paid:
$80.00 Cash Price -50.00 Trade = $30.00 Amount To Be Paid - $15.00 Amount Made By His Worker = $15.00 For Four Tires
Hmm. Good Deal? Yes or No? Well guess what. Herb sold Steve Arnold's old tires that he got for free because Arnold left them there. Herb's manager charged Arnold a $1.00 disposal fee for the used tires.
Moral of the Story:
Trade whenever possible
Don't let employees have company credit cards
You can always get a better deal for cash
Company credit cards are good in some ways. For instance, you will get an itemized invoice monthly, which is good for record keeping. They are also good for making purchases over the phone or by mail. Credit cards make things much easier. They are also a necessity for ordering supplies from your online small business vendors. Think about it.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
Oswego taxi to Midway ..Technical writing services are employed to explain the details of... Read More
Looking for a place to add a Quick Lube away... Read More
As a specialist in getting restaurants open, it is surprising... Read More
Cleaning concrete is tough and there is an easy way... Read More
Most new small businesses won't be in business this time... Read More
-- Building Credibility Through Success Stories --Successful solo entrepreneurs spend... Read More
If an organization lacks a mission statement, it is worthwhile... Read More
What are the 5 best ways to gain new contacts?There... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
Many smaller businesses choose niche markets for various reasons and... Read More
How do we keep track of our business deals?If you... Read More
First, we need to define the different kinds of skip... Read More
CARD SHARK7 Card Tricks That Improve Your Personal Networking PowerThe... Read More
The easiest way to lift profits is to cut the... Read More
-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More
When you go into business for yourself, there are many... Read More
Looking for ways to boost your cash flow? As a... Read More
Top 3 Ways to Maximize Your Small Business Server Consulting... Read More
Everyone wants to succeed in life. Most people want to... Read More
Why give freebies?We have all seen freebies at trade shows... Read More
Everything starts with a business plan: If you don't have... Read More
Cash is King... That is what everyone tells us and... Read More
This is the tale of two business plans with very... Read More
Small businesses need Public Relations, possibly more than large corporations,... Read More
The story is told of a tiger chasing some goats... Read More
shuttle from Midway Morris ..To get approval for your small business loan application, you... Read More
How do we keep track of our business deals?If you... Read More
"If at first you don't succeed, then skydiving definitely isn't... Read More
My 16 year-old daughter said, "Gee Dad! You look just... Read More
Until the day I learned to play chess I loved... Read More
Do you need grant funding for your nonprofit organization? If... Read More
Many government department heads are on the take. Oh they'll... Read More
Think of all of your business ideas as tiny seeds... Read More
A top executive called up me late in the night.... Read More
Q: I have outgrown my home office and need to... Read More
Running a business, whether large, small or in your home,... Read More
Expanding your business requires you to take a good hard... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
The modern Franchise business model and the much different business... Read More
It is not surprising that some people may perceive Six... Read More
When you go into business for yourself, there are many... Read More
If you own a small business, then you know the... Read More
The home-based business market, sometimes called the SOHO (small-office/home-office) market,... Read More
A Mattress Cleaning Business might be just for you if... Read More
Some of the greatest words of wisdom for any man... Read More
There are no "rules of thumb" in the pursuit of... Read More
Traditional advertising methods are still being used for almost 90%... Read More
What are the 5 best ways to gain new contacts?There... Read More
Most small businesses will not even try to advertise on... Read More
What makes a business relationship?What really makes a business relationship?... Read More
Small Business |