Is CASH really king for an OB?

bpool009

Gold Supporter
May 18, 2016
17
Goodyear/Arizona
#1
All you experts out there what sort of discount, if any, do you think we would receive for cash payments?

Also - If we wait to end of year as opposed to ASAP to begin construction will we receive better prices?

Thinking about guys keeping their crews busy as work for this years swim season begins to fall off.
 

Meowloud

Bronze Supporter
Mar 3, 2017
199
Chattanooga, tn
#2
The only reason for me to pay cash is to make a mistake. I paid pool deposit with a bank/cashier's check (we don't have personal checks since we ran out~6 years ago.) Not good. My advice would be to film the entire transaction LOL
In the past (2-8 yrs ago) our contractors love a check to save the 2-3% from a card, but now it doesn't seem to matter and after 30 days you do not have much recourse. Pay plastic! My next drop tomorrow will be card!!!
It is also nice to have a rewards/flight or my fav, cash back card! Earn that money on the pool! Hehe
 

Hey_Zeus

Well-known member
Mar 8, 2017
51
Orlando
#4
OB here same experience here.

Every sub we ask offers a 10% discount on cash. Can be tricky, but with us all work was 100% done before any cash changed hands. No upfront cost at all.
 

Big Will

Silver Supporter
Feb 14, 2017
885
Las Vegas
#5
I will share a few points based off my build and the quotes I received.
1. Every quote I got on the bottom they offered a 5-10% discount for paying cash. This works out for me because if your pool is 50k you save 5k right off the top. I'm not going to lie handing cash over was a fear of mine cause let's just be honest it's a little scary holding that much cash now a days (no one carries cash anymore) and you worry if your gonna get ripped off. But if you think about it you don't pay until the Subs are finished with there portion of work and they will give you a receipt and a lien release so you are covered and protected
2. If there parts of your build that won't accept cash (like equipment) then I agree wit meow that a card with points is the best way to go since you get a perk for spending money you were gonna spend anyway then you can always take the cash and pay your card right away.
3. Cash flow allows construction crews to be more fluid with their business so they will almost always be more flexible with you. I will pass along a little tip I learned- negotiate a price first BEFORE you tell them your paying cash THEN once you get the price you want ask them what is there cash discount. I asked a few subs to "sharpen their pencil" and received a better bid then saved another 10% if I was going to pay with cash.
4. The time of the year really depends on the economy and where you are located. You are in the desert like me where the winters are short and construction has a MUCH longer season. Typically your thought process is correct and you hold a more powerful bargaining chip by doing it in the winter AND paying cash, however , construction is starting to peak again and these crews are having so much work that they even have to turn jobs down. I would recommend that you start when your budget allows it and the only real difference between now and the winter is that you will experience a few delays now because the season is in full swing but in the winter you experience delays due to weather so the difference of a build could be a few weeks in either direction which in the long run is nothing and will barely be remembered.
If your not in a rush and especially since you don't get rain much you can plan your build and take your time and search for deals to make your pool even better. There are quite a few builds I read where guys just got to concrete then let the pool sit so they could recover money or wait to find deals in stone and decking etc. either way you will be happy with your project and done right you will save some money BUT a lot of the money you save by going OB you WILL put right back into your backyard cause there will be something cool that catches your eye lol
Good luck on the build and post lots of pictures when you start
 

Big Will

Silver Supporter
Feb 14, 2017
885
Las Vegas
#6
Also either way if you start now or winter your pool won't be ready until next swim season..... just a thought- if you start now or soon you give yourself PLENTY of time to be 100% ready for next swim season instead of trying to cram it in the winter and praying everything goes perfect
 

jimim

Bronze Supporter
Jun 20, 2016
1,867
NE/Pa
#7
Cash is king in my world. My dads buddies are all contractors. I would only ever pay them cash out of respect. When I built my house they all wanted a certain portion in check for "reporting". I have payed cash to people I don't know but yes only after work is done and I only offer cash after price is settled and firm that I'm using that guy. discount varies from guy to guy I feel due to how big they r and how much they make. Tax bracket we all know how that works so one guy might take more off vs a smaller guy.

I have no issues carrying cash or holding it till needed. I still use mostly cash. My 1 credit card is used only when needed really and paid off. Easier to live without the ax over ur head.

I also have never personally used anyone who took credit card so that never was an issue or came up. Guys I know don't want to deal with charges and all those nickel and dime charges.


My opinion u can save money with cash. Heck use it if u have it. Better in ur pocket vs someone else's. Plus u r saving them tax money so it's a win win for everyone!
 

duraleigh

Admin
Mod Squad
TFP Expert
Platinum Supporter
LifeTime Supporter
In The Industry
Apr 1, 2007
31,392
Sebring, Florida
#8
I have had some luck in the past doing this.....

"Please quote me two prices....one for payment by check and another for payment by green dollars"

Some contractors don't care and some are thrilled to get green dollars......you never know.
 

BigEinAZ

Well-known member
Jan 3, 2016
582
Mesa, Az
#9
I'm not so sure about missing the season Will. My build started mid-June last year and was done by August. Plenty of swim time left with that scenario. Granted, an OB might not move along as quickly, but it depends on your subs, scheduling, and your ability to push. :)
 
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bpool009

Gold Supporter
May 18, 2016
17
Goodyear/Arizona
#10
I am too noob to be able to quote - I will get there :p

Nice - I like that Model Zues!

Excellent Tips Big Will & Jim.

So waiting to end of year to accrue additional discount is worth the season this swim season to me.... However if no discounts then I wanna swim tomorrow! :swim:

It makes sense in my pea brain - simple supply and demand but that may not hold true outside of my noggin - Any idea if there is an end of year price decrease?
 
Apr 9, 2016
15
Phoenix
#14
I'm in Phoenix, started an owner build 16 days ago, and just had coping installed today. You could be swimming in a month :)

Tile and pebble are going in next week. If you push the subs, and "shop their schedules" you can get them out there quickly, and most will give cash discounts. Just my experience.
 
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bpool009

Gold Supporter
May 18, 2016
17
Goodyear/Arizona
#15
I'm in Phoenix, started an owner build 16 days ago, and just had coping installed today. You could be swimming in a month :)

Tile and pebble are going in next week. If you push the subs, and "shop their schedules" you can get them out there quickly, and most will give cash discounts. Just my experience.
Thanks for the info mbd

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Reread post #9 . . .
Got it BigE - Thank you
 

slpybeartx

Active member
Mar 7, 2017
43
North Texas
#16
I WOULD NOT ask for the cash price up front. Always start by asking for the "Best Price." Then ask the contractor when he can get to you and get the date. Once you have zeroed in on the price and date, then ask if he has a discount for cash and if you can be moved up. You would be surprised.

If you ask for the cash price and check price up front, you will get the normal rate as cash and then an adder to make up the check price.
 

jimim

Bronze Supporter
Jun 20, 2016
1,867
NE/Pa
#17
I WOULD NOT ask for the cash price up front. Always start by asking for the "Best Price." Then ask the contractor when he can get to you and get the date. Once you have zeroed in on the price and date, then ask if he has a discount for cash and if you can be moved up. You would be surprised.

If you ask for the cash price and check price up front, you will get the normal rate as cash and then an adder to make up the check price.
ya i have seen this happen many many times. cash is the last thing you should be talking about.

and again my situation is diff cause i know most of my guys when i built, but when i don't know someone, which is few, i only mention cash literally when i'm pretty much done. i tend to not hire anyone cause of price alone. i have been burnt on that before. i really just want the best guy i can find regardless and if i can save some with cash so be it, but my job quality always comes first. i look at the money i save with cash is a way to get back on somewhat of a budget cause stuff always comes up. never fails no matter how tight you think you got it planned out.

look at me we dug and hit sand waaay worse than i thought. extra money to flash the hole. gone. . .
 
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bpool009

Gold Supporter
May 18, 2016
17
Goodyear/Arizona
#18
ya i have seen this happen many many times. cash is the last thing you should be talking about.

and again my situation is diff cause i know most of my guys when i built, but when i don't know someone, which is few, i only mention cash literally when i'm pretty much done. i tend to not hire anyone cause of price alone. i have been burnt on that before. i really just want the best guy i can find regardless and if i can save some with cash so be it, but my job quality always comes first. i look at the money i save with cash is a way to get back on somewhat of a budget cause stuff always comes up. never fails no matter how tight you think you got it planned out.

look at me we dug and hit sand waaay worse than i thought. extra money to flash the hole. gone. . .
I agree on the quality. After all only going to do this one time want it done right - just wanna make my money go as far as I reasonably am able. I will follow the suggestions asking for a cash price at the very very last minute.

Speaking of which - how does that work? do you sign a contract with the sub with an attached plan that you are agreeing on so there is less room for misunderstanding of the job he is committing to do?

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I WOULD NOT ask for the cash price up front. Always start by asking for the "Best Price." Then ask the contractor when he can get to you and get the date. Once you have zeroed in on the price and date, then ask if he has a discount for cash and if you can be moved up. You would be surprised.

If you ask for the cash price and check price up front, you will get the normal rate as cash and then an adder to make up the check price.
Thanks Slpy
 
Apr 9, 2016
15
Phoenix
#20
I agree with waiting until last minute to ask for cash price. This is what I did and it worked for me. I let them bid, hired them to do the work, and then when they were on site I asked about a lower price for cash.

I didn't sign any contracts with subs. I had their estimates and worked off of that. I didn't have any problems, but I made sure everything I expected was written into the estimate so that we are all on the same page.

Hope this helps.

I agree on the quality. After all only going to do this one time want it done right - just wanna make my money go as far as I reasonably am able. I will follow the suggestions asking for a cash price at the very very last minute.

Speaking of which - how does that work? do you sign a contract with the sub with an attached plan that you are agreeing on so there is less room for misunderstanding of the job he is committing to do?

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Thanks Slpy