I worked hard to complete a great design,lots of footwork, tracking down etc. He looks at the design, loves it, asks "how much?" I tell him, he nods his head and says "OK, go for it" I ask for a deposit, the look of shock was noticable.
"I have never had to leave a deposit for the out of town company who does my other stores....I want to work with a local sign company" I explained that because of the size of the job, (10K) I need half down. "Well, I will have to check with the partners" I hope I didn't blow it, but, I don't want to carry that project until someone is able to write a check....
This is an age-old dispute, and on some jobs I don't collect, because I can afford to carry them. The other issue is that it is only the second job I have done for him. WWYD???
Posted by Robert Root (Member # 758) on :
With very few exceptions I ask for a deposit. For larger jobs I tell them it's to cover the cost of materials. I've been to other shops that have a sign up saying all jobs require a 50% deposit.
Posted by Cheryl Lucas (Member # 1656) on :
Rick,
I don't have the 'booty' to carry these jobs. I tell 'em I need to cover my materials. Most, understand and write the check.
Careful of the goose with the golden egg...
Cher.
Posted by Rick Chavez (Member # 2146) on :
In California we can only ask for 20%, but I probably wouldn't carry my own mom for 10k. How about a smaller deposit with progress payments instead.
Posted by Gene Golden (Member # 3934) on :
Rick, Stick with the 50%. Don't back down. They are either going to buy the signs, or not, so have them pay some upfront. You don't need to carry them. It is custom work and it requires a deposit. If you had the product sitting there on the shelf, he would pay you 100% right now! Yes? You're not WalMart.
This is where the design fee comes in. Check out my policy: G'Burg Signs Policy Not that I always USE it, but it is there just in case.
Posted by Wayne Webb (Member # 1124) on :
I have found out the hard way not to spend any time on a design until I have at least a design deposit. Then, if they decide to back out for whatever reason, we have been compensated for our time. But I wouldn't start production without 50% down unless it is for a large established corporation or the government. But then again, I have also done work for Enron too.
I would need to have binding contract or something before I would stick my neck out on that one unless I had reason to trust them very well. We have done jobs as large as 13,000 for one of our customers without any deposit. But, then again, they are a large corporation and don't do business on a deposit-down basis. I've never had any trouble getting my money. They now pay by corporate credit card.
[ October 01, 2004, 05:43 PM: Message edited by: Wayne Webb ]
Posted by Bob Stephens (Member # 858) on :
Me? 50% or go elsewhere. I'm not a friggin bank.
Posted by Sheila Ferrell (Member # 3741) on :
It was rude of him to express shock.
It shows ALL of the following:
~ That he has no respect for standard business practices.
~ He is not concerned that he is makin' himself appear "shady".
~ He is shady.
~ He has no respect for the work/good faith you've shown so far towards the job.
~ He has no money.
Ditto's what Gene said..
DUDE, don't back down. But know this. You should have gotten a design fee. If he walks, what have you got for the design??
PS: Sometimes I just get 50% with "first time" customers . . .
[ October 01, 2004, 09:40 PM: Message edited by: Sheila Ferrell ]
Posted by Mike Pipes (Member # 1573) on :
I wouldnt carry my own mother for that amount either! Then again, my mother would never ask me to do that!
Posted by Kissymatina (Member # 2028) on :
The last person I would extend credit to is the one who demands it.
If I get a hard time about the deposit rule, I explain that the work I do is custom. It's not like if the customer doesn't pick it up & pay for it, I can sell it to someone else.
I rarely blow off my deposit rule (I only do if it's a customer I know and have a good "gut" feeling about). I never back down from it because a customer tries to tell me how to run my business. I find his telling you that he won't agree to your standard business terms rude.
Posted by Doug Allan (Member # 2247) on :
whatever you decide you have to tell him like it's no great loss one way or the other. Like Gene said, they either are going to get them or not... don't give him the satisfaction of thinking you will lose any sleep over it because if you truely call his bluff by inviting him to leave if he can't meet your terms... he will respect your business practices more. More today... & more forever! AND I think he will save face on meeting your terms if you stand your ground. If you waver for an instant... he will commit even further to wanting to write the script, & turning back to agree wil then be further to go. Tell him you understand cash in the hand is a good thing & you don't blame him for asking... You would take it if you could get it too... nice try, but no thanks. Too busy with jobs funded by the clients to bother funding jobs myself.
Posted by Janette Balogh (Member # 192) on :
Rick, I wouldn't budge on your deposit requirements, and would mention to him that, upon paying you for your time on the design, he is welcome to take it to a shop that doesn't require a deposit before fabrication.
(ps: remember a sketch deposit next time, before investing time in design)
Nettie
Posted by Chuck Gallagher (Member # 69) on :
I just did a job for 12K. Multi Million dollar company and got my 50% down and the other 50%upon completion. I guess it's your client, not you. You want to deal with a local company sir, that's how I stay in business and local for you!!!
Posted by Rick Beisiegel (Member # 3723) on :
Thank you all for your replies! I feel better now for my decision. You guys rock!!!
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