Deposit money

hey guys

Do you get customers to pay a deposit for materials you are supplying ?

I don't have a showroom or warehouse or nothing and operate from home and some customers don't like paying for materials until I turn up with it. I always ask for BACS payments but some are like what if you run away with it ? They get a business card from me, a receipt once funds are clear . What more do I need to do?

 

Oh forgot

And I tell them fit money once it's complete.

 

Always get a deposit. Who else get materials for nothing with out signing an account form? Just had this with a customer saying the same thing. I'm not getting stuck with the £8000 grand bill when they decide they want a different colour or they have no money left because they paid all the other trades first.

 

I always get a deposit to cover materials. I email them an invoice from invoice2go app and get them to bank transfer so they've a record of where's it's gone. Been stung twice luckily only small ones though.
If they don't want to do it I don't do the job. Simples

 

I don't take many deposit but do on bigger jobs. I find if I know where they live they we be paying in full

 

The problem is other bad tradesmen not just in the flooring game but in general take money and don't show up or bring cheaper alternatives. And some customers get abit nervous even tho you supply them with all your personal details in handing over money.

So I understand sometimes from there point of view.

 

Normally builders. They pay massive amounts upfront to them.
That's why it's important to build up a good reputation

 

Yeah, especially when it's something like Westex...

 

lol exactly

 

I always get a deposit no matter what size the job.

The way I work out the amount of deposit required is,

1. I work out the total job price fitted I.e. £2000
2. I work out the cost of materials from my supplier. I.e. £1200
3. £800 left from job for profit and fitting
4. £1200 plus 25% £1500
5. £1500 deposit. £500 upon completion

If they don't agree to my terms I don't do the job SIMPLE

 

I'm not a floorer but I always take deposits from customers, I usually say nothing goes in the diary without a deposit. If it was a smaller job then just something small for goodwill, for larger jobs I will take up to 50% to make sure all material cost are covered. I had a few jobs pull out at the last minute a while back and it left me with a wasted week with no pay, i have never had anyone pull out after paying a deposit!

 

For domestic work I charge a deposit of one third of the total job cost and have only ever had one refusal.
Deposits are not requested from businesses at the moment but I am strongly considering asking for one in 2016.

Bob
www.floorfixer.co.uk

I was going to sack the floorfixer with the worst posture - but I've got a hunch it might be me!

 

I take a 50% deposit unless I know them it's a must

 

A company I work for use 20% deposit on order ..... To cover restocking charges etc
70% on comencement...... Once materials are signed for by customer and on site then 10% upon completion

 

I always do 20% deposit at the start and the 10% material costs.

 

Always cover costs of the materials. Explain why you take that deposit and they should be fine, if not tread very carefully.