Haggling prices and chasing debts - tradespeople hit with cost of living headache

Angela Jeffery's role as an office manager has changed - she now spends a lot of time chasing debts and working out payment plans for customers struggling to pay.

On two occasions she has had to take people to the small claims court to make sure Carmarthenshire-based West Wales Electrical Solutions has been paid.

Haggling is also a skill many tradespeople are having to master, with a Cardiff-based tree surgeon saying customers question his fixed prices every day.

These companies are not alone - more than 53% of tradespeople say they have seen an increase of late payments compared to a year ago, according to a survey by the Direct Line Group, who said the situation was "deeply demoralising".

The survey also found 68% said they were chasing late payments, with 23% juggling four or more unpaid invoices at a time, with the average amount written off by tradespeople £1,646.

"Some customers have lost their jobs or loved ones which makes it hard for them to afford to pay," Angela added.

"We are reasonable with the genuine people really struggling."

The cost of living has been rising for the past few years - with inflation hitting things such as food, energy, rent and mortgages.

As part of a family company based in Newcastle Emlyn, Angela tries to be sensitive to each customer's situation.

Their electrical work focuses on agricultural, commercial and residential projects - but it's the "bigger jobs" such as rewiring, solar and green energy systems that have seen some customers struggle to pay.

Whereas, in the past, customers accepted estimates, they often now want to know the full cost before committing.

"Before they just booked us in, knowing roughly how much it would cost," she added.

It's not simply a case of chasing debt after work is done, and Angela tries to build relationships with customers.

They have brought in policies, such as payment by the hour to help customers cope, and she said: "It is a difficult times for everybody.

"The price of everything has gone up so much.

"We need the work with five electricians on the road, so we try to work with the customer and what they need."

Haggling over prices has become a part of daily working life for Dom Meletti, who is the director of DLM Tree Services.

His team trim hedges and look after trees for businesses and homeowners around the Welsh capital.

"We've never agreed to reduce our prices," he said.

"They are fixed but fair so when we are asked if it can be done cheaper we explain politely that unfortunately this is the price of the job.

"90% of the time they then agree to the job anyway."

The 28 year-old understands the predicament many customers are in, but his firm has outgoings of £10,000 a month before wages, whether they work or not.

"When people try to haggle the price it doesn't feel great but on the other hand as a director who lives a personal life as well I understand things are expensive and sometimes you want something done, hoping it can be cheaper," he added.

In its survey of 500 tradespeople, Direct Line painted a stark picture - with them owed an average of £2,023 each in late payments.

More than four in 10 tradespeople (42%) surveyed had been forced to write off debts of more than £500 from invoices that were never paid and a fifth (20%) had abandoned chasing invoices of more than £1,000.

To protect themselves, the survey found many were now taking additional steps such as asking for proof of funds before starting jobs.

Others are taking half the money upfront, then sending an invoice for the rest of the money before work is completed, or charging late payment fees.

The UK government recently announced new measures to tackle late payments to small businesses from larger firms, amid concerns that more than 1,000 small businesses in the UK shut down every month due to late payments.

Direct Line's Mark Summerville said often tradespeople felt they had no choice but to write off unpaid invoices, describing it as not only financially damaging but "deeply demoralising".

"Late payments are often cited by tradespeople as their biggest problem," he added.

"When a client fails to pay on time after work is completed, it can create a highly stressful situation.

"Payment delays disrupt both personal and business finances, affecting the ability to cover bills and manage cash flow for future projects."

However, not everyone reports negative experiences, with self-employed plumber Gavin Shopland describing his customers as "good as gold".

The 51-year-old has been working in Cardiff since 2009 and many of the people he works for are repeat clients.

"I think the reason my customers are really good at paying quickly is because they are loyal," he said.

"I don't get any back and forth on price. I'm pretty fair with it.

"The price is what the price is."