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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???
""Good judgment comes from experience; and a lot of that comes from bad judgment" - Will Rogers Posts: 3485 | From: Beautiful Newaygo, Michigan | Registered: Mar 2003
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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.
-------------------- Rob Root Root Cellar Signs Waubaushene, rob@rootcellarsigns.ca
point and click until it works Posts: 55 | From: Waubaushene, Ont. Canada | Registered: Apr 1999
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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.
-------------------- Rick Chavez Hemet, CA Posts: 1538 | From: Hemet,CA U.S.A. | Registered: Jun 2001
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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.
-------------------- Gene Golden Gettysburg Signs Gettysburg PA 17325 717-334-0200 genegolden@gettysburgsigns.com
"Art is knowing when to stop." Posts: 1578 | From: Gettysburg, PA | Registered: Jun 2003
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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 ]
-------------------- Wayne Webb Webb Signworks Chipley, FL 850.638.9329 wayne@webbsignworks.com Posts: 7403 | From: Chipley,Florida,United States | Registered: Oct 1999
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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.
-------------------- Chris Welker Wildfire Signs Indiana, Pa Posts: 4254 | From: Indiana, PA | Registered: Mar 2001
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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.
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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
-------------------- "When Love and Skill Work Together ... Expect a Masterpiece"
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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!!!
-------------------- Chuck Gallagher Pro Graphics Signs by Design Cabool, MO 417.962.3291 "I grew up in Letterville" Posts: 776 | From: Cabool, Mo. USA | Registered: Nov 1998
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""Good judgment comes from experience; and a lot of that comes from bad judgment" - Will Rogers Posts: 3485 | From: Beautiful Newaygo, Michigan | Registered: Mar 2003
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