Quote:
Originally Posted by Lubicon
Might be specific to certain services, we have seen incredible pushback to any attempt at price increases in the particular line of work I am in. Frustrating to the point that we are declining to even bid on some work for some operators who have gained a reputation for being cheap.
Hack n Lube is also likely right with the cash flow comment. And ironically it is again the Operators who are mainly responsible for this by dragging out payment for services well past 90 days in many cases. Average payment times have increased from around 60 days to 85 days from date of invoice according to our accounting people so we are now carrying almost three months of costs (including payroll) before we see any revenue for work.
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And operators cash flow is anywhere from 25-55 days depending upon the day of production.