Deposit or no deposit??

[Rickster123]

Hi guys
Im looking for abit of advice really. Do you take deposits from customers on large installs (ie in excess of £1000)?

I have been taking a deposit for some time now and not had a single query on it until today. Spoke to the customer on tuesday and he was happy to pay a deposit of 50% of job total. Now hes emailed saying this wont happen. Im only a small business and cant really afford to take the risk of a bouncy cheque. (which has happened in the past!)

So whats the norm out there?? Any replies or info would be great.

Thank u!

 

[Rickster123]

Just an update. The job has now been cancelled by the customer. Bit of a shame but i just dont have £1250 spare to take a risk on. fed up now!

 

[nysk2008]

any jobs over 400 quid i reserve the right to ask for up 2 50% deposit. I know its hard losing business but its harder getting your doh after youve installed.

 

[dontknowitall]

I never take a deposit and ask for monies when I've finished the job. If lasting over a month (e.g. long job or working around 5 days over 3-4 months) then I arrange to send an invoice and be paid at the end of the month.

If I don't trust the customer I walk away from the job.

This is how I've been treated over the years and don't expect my customers to be treated differently to this system.

 

[nysk2008]

fair play dontknowitall, wish it was like that is south london, im a trusting bloke like many, moving to the south west so hopefully can send an invoice rather than feeling like a collection agency.

 

[gmac]

If its a large outlay on materials and I thought customer may not pay I collect materials and request a cash on delivery type arrangement, at least if i do get stung i'm not losing money on materials, its bad enough not getting paid for your time but when you're actually paying for their nice new boiler or whatever its quite sickening

 

[GQuigley67]

I haven't done it yet, although I was thinking of doing it, but I have a program which lets me send a template solicitors letter and if they ignore that then I can get the debt collectors in, would also threaten them with interest aswell, I have this company advertising on my invoices aswell.

 

[dontknowitall]

I quite agree GMac.

I've just walked away from a customer (a rich landlord who was moaning about money) and I didn't think he would pay me. Have already bought the electric shower and had unpacked it so probably won't get my money back now.

But ...

I might fit it for my neighbours for nothing - no charge for the shower or my plumbing. They've spent loads of money on plumbing over the last 2-3 years and the shower I fitted froze :-( It was their fault and they're not blaming me.

But I'd love to tell the above landlord that I'm fitting it totally for free for someone else.

 

[Rickster123]

Its very hard to lose a job or walk away from a job with work being as thin on the ground as it is. I did explain to customer the reasons why i needed a deposit and of course a receipt for the money taken wouldve been given. But he decided he'd cancel the work at the last minute.
AGGGHH!!! Time for a beer and a cancer stick!

 

[gaspastemania]

Never asked for deposit and only times ive had hassle with money on private work is when its under £100 , different story as a subby tho

 

[gmac]

I quite agree GMac.

I've just walked away from a customer (a rich landlord who was moaning about money) and I didn't think he would pay me. Have already bought the electric shower and had unpacked it so probably won't get my money back now.

But ...

I might fit it for my neighbours for nothing - no charge for the shower or my plumbing. They've spent loads of money on plumbing over the last 2-3 years and the shower I fitted froze :-( It was their fault and they're not blaming me.

But I'd love to tell the above landlord that I'm fitting it totally for free for someone else.

I like your style lol, altho 9 times outta 10 its the ones who seem to have a few quid are the problem payers,

 

[dontknowitall]

APPlumbing - don't be hard on yourself.

Could have been he was going to delay payment in any case and the reason he stopped you working was that he didn't have the money to pay you in the first place.

 

[Puddle]

An old plumber said to me many years ago

''you'll never make a descent plumber'' but apart from that he also said

Always take a deposit, it gets the customer used to parting with their money.and that is so true, agreeing to a price and actually parting with a big chuck of wod is two different things, also spreads grand total so does not seem so much and gives the job material value

You are more likely to be paid in full if you take deposits and stage payments,the bigger the final payment ,the bigger the chance of it not all being there
Nothing to do if you need it or not just good safe business sense

imho

 

[dontknowitall]

Might consider changing my fossilized thoughts after reading that!

 

[gmac]

Its very hard to lose a job or walk away from a job with work being as thin on the ground as it is. I did explain to customer the reasons why i needed a deposit and of course a receipt for the money taken wouldve been given. But he decided he'd cancel the work at the last minute.
AGGGHH!!! Time for a beer and a cancer stick!

You could look at it as you've had a lucky escape and he doesn't actually have the money to pay you.

All these cowboy builder shows and how to find a good tradesman guides etc are telling customers not to part with any money up front because a legit business should have sufficent resources to supply materials and complete job before payment, they don't promote the fact of the number of tradesmen gettin screwed by customers.

Think dom littlewood should do a bit of investigation from our side for once and chase our debts up