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

An important development from the financial markets: Haggling prices and chasing debts - tradespeople hit with cost of living headache3 days ago Share Save Add as preferred on GoogleDanielle HerbertBBC Wales West Wales Electrical SolutionsAngela now has to spend a large part of her time making sure the company is paid 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 in 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.

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"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.

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"We need the work with five electricians on the road, so we try to work with the customer and what they need. "DLM Tree ServicesPeople trying to get reduced prices puts a strain on the company, which has fixed overheads relating to vans, fuel and equipment 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.

Financial markets are tracking the development closely as investors assess the likely impact.