How can I explain in simple english?

pelirocco

lisa76 wrote: »

Right help please with percentages............

We've done a job for another company and they haven't paid us enough. I am nearly 100% sure that I am correct but I want to run things past you wise people, and also if I am right to help me explain in simple english how I am right!!!

Basically we quoted for a job and then added on 15% to quote on behalf of another company (to save them time)

The figures are:
D net price £5186.95
D VAT £778.04
D gross £5964.99 - price quoted and accepted by company we are sub-contracting to.

D net price £5186.95
B net price £5965.00 - marked up 15%
B VAT £894.75
B gross £6859.75 - final figure quoted and accepted by client

They have paid us £5830.78 which they are explaining is 85% of the total price.

I have sent the above and they have replied saying that they have spent far too much time on this now and have used up factoring services that cost money (don't have a clue what that is). Basically she's telling me that she's right and I'm wrong.

I know that if I use her logic on £115 and take off 15% or work out 85% I do not get £100!!!!!

Advice please!

Does she mean they factor out their invoices? , if so it wouldnt cost them this much

Did they agree in wriiting to your quote? ( always a good idea to get companies do this )

Issue a 7 day letter warning that non payment will result in court action . If you have no response issue a county court summons ( easily done on line ) and dont let it drop if they still dont pay in the alloted time its up to you to chase the court to issue the ccj and chase payment

pelirocco

lisa76 wrote: »

martin - we subcontracted to another company and quoted on their behalf, using their quote paper etc etc, so the customer paid them and they paid us. when we quoted for them we had to mark up our price by 15% but she's now said that she wanted 15% of the total invoice (that's not what mark up means to me!!)

borders - that's exactly what i tried to tell her - i do wonder if she can run a business actually!!!

Now ive read this I am confused

The company who wanted the work done have paid the bill to the people who did the job ?

Who wanted you to mark up your quote by 15% , I assume the company who did the work? , but then that means you should only been paid the 15% you added on .

Why didnt the customer just go direct to the company who did the work , seeing as they invoiced them . Surely if you are sub contracting the work you invoice in your own name

So waht compnay isnt paying you? , the customer or the one who did the job , maybe its me being dense here

mountainofdebt

I must admit I was confused as well, peliroco!

I think the first mistake was to invoice the company on the sub-contractors headed paper - whenever OH has subcontracted work, the invoice and all associated paperwork has come from his firm; as far as the client is concerned his firm is doing the work and it will be his firm who invoices / gets paid.

I think I can see what has happened - the client has been quoted and has been able to see that the work has been marked up by 15% by the from the quote from the subcontractor to the OP

The client has then decided (for whatever reason) that they will pay the subcontractor diectly the invoice the OP issued less the mark-up (which just happens to be the same rate as the VAT rate)

Obviously this is not the figure that they agreed and yes I do agree that if they agreed the price then thye should pay it.

I'm not sure why they would use a factoring company for invoices that they have to pay - I thought factoring companies were only used to effectively get paid invoices that were issued by their clients to easy cashflow situations.