Our business has been running for about a year and a half. We split everything 50/50, including profits and upfront costs. Lately, repairs on pieces we buy have been eating into our margins, and my partner has stopped contributing to that side of things. I have been fronting the money for things like reupholstery, hardware replacement, and refinishing supplies, but when I ask for reimbursement, he says repairs are my responsibility because I am the one with the woodworking skills. We never put anything in writing about this. I am starting to feel resentful and I am not sure how to resolve it without blowing up the business. Has anyone dealt with a similar situation?
Partnership
My furniture-flipping partner refuses to pay for repairs
Yeah, this sounds like a classic case of roles getting blurred. If you didn't formally agree on who handles what, he might genuinely think repairs fall under your sdie of the operation. But that doesn't make it fair if you're paying out of pocket. You need to sit down and define what "shared costs" actually means.
How much are we talking here? Like, are we talking hundreds or thousands over the past few months? If it's substantial, I'd be documenting every single expense and presenting it to him. Hard to argue with a spreadsheet.
OP, you mentioned you have woodworking skills. Is tphat why you two partnered up in the first place? If he brought capital and you brought labor, maybe he sees the repair costs as part of your labor contribution. Not saying it's right, but it might explain his logic.
VerdantRidge makes a good point. The original arrangement could have been interpreted differently by each of you. That said, if you're buying pieces together and splitting profits, repairs are a business expense, not a personal one. He can't have it both ways.
To answer the questions: it's probably around $1,200 over the last four months. And yes, he put up more of the initial cash while I handle the actual flipping work. I see now that we both assumed different things. I am going to try tracking everything for a month and then have a real conversation with numbers in hand.
That's a solid plan. Just be prepared for him to push back. If he's already refused once, a spreadsheet might not change his mind. You may need to decide whether you're willing to walk away if he won't budge. Not an easy spot to be in.
I have seen partnerships fall apart over less.The money is one issue, but the resentment is the real problem. If you don't address the underlying imbalance in roles and expectations, it will keep coming back. Maybe consider a formal operating agreement even at this stage.
Honestly, $1,200 is not nothing, but it's alsoo not worth losing a partner over if the business is otherwise working. I'd focus less on getting reimbursed for the past and more on setting clear rules going forward. Chalk the past up to a learning experience.