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In our business, C.O.D. (getting paid the minute the work is done) is impractical and a poor business practice. Strangely, those who utilize flat rate pricing are absolutely convinced C.O.D. is the only way to bill. Here's why they're wrong:
- Demanding C.O.D. implies a lack of trust - to your customer. This is the undeniable perception left with the customer and creates alienation or distancing of the very person you need to have a trusting and positive rapport with. Of course, if you will never see this customer again, or want to appear as disingenuous as possible - than I suppose C.O.D. is fine.
 Many times you are summoned to make a service call that is unplanned or unexpected. Forcing a C.O.D. situation places the customer in an uncomfortable relationship wherein they will be forced to do the job only as far as their check book balance at that moment can cover - not what's the best - or right thing to do.
- This also forces all calls to be done when someone with a check book - and authority to sign it - must be home. No "open doors, teenaged kids" or other convenient scheduling options are possible. Only a check writing home owner can be there to guarantee getting paid. Ever thought of what hoops we make a customer jump through, or how we alienate the very person we should be able to look after, by telling them, "Stay home from work today. The contractor won't bill us - we need to stay home so we can be there for a C.O.D. payment"?
- The job may require work that exceeds the balance in their check book at that moment and an uncomfortable silence will be the bad taste left in the customer's mouth.
- All invoices will be scribbled, not printed - blowing that "professional" image so many of us strive for.
 Any parts used, bought from a supply house, must be priced at the supply house - before the proper selling price can be calculated. This wastes valuable time at the supply house - and causes labor time to be wasted.
- I want my customers to know my tech is focused on fixing the problem, not playing accountant, clerk, cashier, etc.
- A few COD's would logically pay by cash (not a check). Does my tech have change available? Do I have to add a bankroll spreadsheet to my techs already overfilled note keeping workload? I think not.
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