"Low Income Assistance Plan"-Another Gripe

[James Burke]

They seem to be on most all my utility bills - "Low income assiatance plan" charges.

I didn't agree to it...but now it's part of my "plan"...not an option...to pay a tax to make up for those who don't pay their bills.

It's a dime here and there...not much...but it's the thought of it. What kind of jerks build a business model that penalize first-class customers who pay their bills?

How far would your business go if your customer saw a charge like that on their bill?

JB

 

[ProWraps]

if your company was called "monopoly signs" it would go pretty far.

 

[ucmj22]

if your company was called "monopoly signs" it would go pretty far.

 

[Techman]

Now you should see what MY part is this year. I paid 54 bux on a 7 bux bill last summer top pay for the people who did not pay their gas bill.

 

[Gino]

Unfortunately, that's a cost we should all have built into our overhead.... we do.

It's a loss factor. When a rental unit or a machine lies idle for an unknown time, you can't expect to pay all of that out of your pocket..... no, not at all. You have a loss factor built into all of your prices, you just don't advertise it.

Insurance companies have had that for a long time. When someone has an accident and the other party has no insurance, why should you pay for it ?? :Oops: you don't, but your premiums will go up.

All the people taking a free ride have gotten to a point where these costs must be paid back and by whom better than the very people with the money ??

Okay, let's look at this for a moment. You buy a roll of paper towels, expecting it to last three days. You or an employee drop it in the mud, ruining it completely. Who pays for that ?? The employee or you ?? The customer does when you charge 7-1/2% on top of every sale for loss in the work place. Let's go a little further.... you, or an employee drops a sheet of $125. composite aluminum making it unusable from dents and scratches. Who pays for that ?? You, or the employee ?? The customer does in his 7-1/2% on top of the job charge. It's a chit factor, for all those things that go wrong and no one ever has the money to pay for outa pocket. You add 3-1/% to 7-1/2% to each and every job, you'll have a much healthier cash flow and you'll be capable of replacing those unexpected mishaps.... all the time.

Now, the business is supporter itself instead of you having to always feel like using your last penny to pay for supplies or tools which you weren't counting on replacing so quickly outa pocket. This also makes it easier to forgive an employee that can't afford to replace a mistake they made, either.

If you run efficiently, use it as a 'slush fund' and take everyone out for pizza and beer at the end of the year. Call it an employee appreciation night or a Christmas Party.... or just hold onto it and put it towards next year. Eventually, you'll be paying higher taxes, but they'll be worth it.

This is another area to reward people for not creating any extra costs and can be used as an incentive to work in a better environment...... just by adding a small percentage to each and every job.​

So, think about it, let's say you have an average of 10 invoices go out a week and between them they average $5,000 total or an extra $175 to $375 a week. That's an extra $9,100 to $19,500 a year. You could do some serious stuff with money like that with fewer incidents in the workplace. You put it in a separate area and don't touch it for anything other than mistakes or mishaps. For getting an average of $17.50 more an invoice, you could be very happy.

 

[OldPaint]

That doesnt bother me as much as the FUEL CHARGE....... on my electric bill. i pay A COMPANY FOR WHAT IS SELLS.... and then I GOT PAY FOR THE FUEL they use to make what they sell????? AND ON TOP OF THAT....we now have DIGITAL METERS..........and they are makiing US PAY FOR THEM!!!!!!!!!!!!

 

[ucmj22]

It always seems to happen with people advertising the lowest price. the power company does it so they can tell the government "look, we're only charging people .004¢ per KwH, so leave us alone" they dont add in all the fees they charge you. or the sign shop down the street that wins a customer away because they say they will make a 4X8 sign for $100, then when the customer gets the bill its $100 for the sign + $55 art fee + $35 setup fee + $25 printer time.

 

[btropical.com]

The don't grow opium charge has allways puzzled me .

 

[David Wright]

Is it possible that the government forces or coerces the Utilities to do this?
Gino, the build it into your overhead goes so far, then you start to realize how many jobs you may not get because of the incremental price increases. Hell, I have lost jobs because of the outrageous permit and review fees attached from the cities.

It can't all be recouped.

 

[Kentucky Wraps]

We're adding a charge starting This year...it's to help with the costs of ...Gas it takes me to get to work, minutes I spend ordering stock, shoes I have to buy every year because they wear out while I walk around the shop, electricity to run the microwave to heat my frozen burritos for lunch because I can't afford to leave the shop to eat, Water bill because for some reason, customers can't hold it once they get to my sign shop (not restaurant), and...there's some other stuff too.
Why don't they just raise the friggin price of their product instead of adding all that other crap.
Did you know some banks are CHARGING you to talk to a real live bank teller so that you'll do more automated banking?
BUT really, i'm raising all my prices 5% and then offering a 5% cash/check discount. I hate taking credit cards for payment.

 

[Gino]

Is it possible that the government forces or coerces the Utilities to do this?
Gino, the build it into your overhead goes so far, then you start to realize how many jobs you may not get because of the incremental price increases. Hell, I have lost jobs because of the outrageous permit and review fees attached from the cities.

It can't all be recouped.

No, not at all. I've been adding this charge in since the early 80's when I met someone who explained this whole thing to me. It never hit home, so I kept it low like 3%. However, we were renting a building for our shop some years ago in the early 90's and the owner wanted to sell it. Turns out the real estate agent was one of our customers. He asked me all kinds of questions and then he said something about a loss cost. I asked.... is that like the chit factor for when things go wrong, you have some extra money put aside and he said no. Any business worth it's salt will tell you there is always misused time or resources and to make those losses pay off, you have to charge while you have a paying client. HUH ?? How can you pay for something you don't have ??

Okay, when this apartment is not being rented, how can you expect to pay for it ?? So, I figured, when employees waste things, break things, I order something wrong, or we have to do it again or whatever goes wrong... if I had a certain percentage from every job coming in, it would add up to a great deal.... and keeping it at about 7%, no one ever sees it or feels it in the pricing.

We have a job which between materials, substrates, labor, overhead and whatever else comes to $900.... do you really think $63 more dollars in the cost end of the equation is gonna break the deal ?? The end product is gonna go for about $3,100. If it does effect the purchase, then you are probably doing something wrong.

Even when printing on vinyl..... who pays for the wasted material ??

You charge $XX amount for the printed surface, but let's say you're printing 46" x 100'.... who pays for the loss of that 8" x 100' or 67 square feet of un-printed vinyl ?? You're certainly not going to use it again, so are your prices high enough to absorb that..... or do you just plain charge for that. We have a separate price for unused, but lost vinyl due to size structure to help recoup those sorts of loses.