[scott C]

How many of you require a deposit for the right to reserve a spot on your schedule?

If you do require a deposit how far out will you schedule some ones work to be done? 6 weeks, 2 months or more.

Is your deposit refundable or not?

Last year I started to require a 15 % non refundable deposit to reserve a spot on our schedule. So far it has worked pretty well, after all it is a seasonal business and there is only so much work we can get done. In the past we have had jobs scheduled only to find the customers either changed their mind or couldn't wait. Leaving us to scramble to find more work. My biggest hang up right now is trying to decide just how far out I should book while taking deposits and how firm of a starting date I should be giving the clients

[paponte]

I always require at least 1/4 deposit for a job. The furthest I have booked in advance was 3 months. Never had a problem with anyone not wanting to give a deposit.

[Stonehenge]

We take deposits with every contract that is signed. Doesn't matter if it's for 2 days or 6 months from now. I think that the sooner you get monetary commitment out of them, the better. They are less likely to jump ship if they've already stuck a few grand into you.

For us, it's 20% at contract signing, 50% the day we start, 30% at completion. If it's a small job, we'll do 50-50. And we will get people asking us to 'pencil them in', but I tell them we only place them on the schedule when we receive a signed contract and deposit. I won't hold a place open on my schedule so they can take time to shop around.

paponte - good to see you around.

[Nebraska]

50% at contract signing...50% upon completion.. I like the 20%, 50%, and 30% Stonehenge. What constitutes a "small job"?

[paponte]

What constitutes a "small job"?

$10K or less for us.

[Rex Mann]

We also require a deposit to get on the schedule board. We get 1/3 when we sign paper, 1/3 the first day and then the balance.

Like Jeff, small jobs I do 50-50 or if they are supplying the pavers (does anyone else have clients who want to purchase the pavers on their own?...I do not understand their reasoning).....we also get 50-50.

Peace,

Rex

[paponte]

(does anyone else have clients who want to purchase the pavers on their own?...I do not understand their reasoning)

Never understood it either. They act like they can get it cheaper than we can. Never had it happen with pavers, just timber. Ended up the guy was a 1/2 owner of a lumber company, so I guess it made sense.

[jwholden]

I go with 1/3, 1/3, 1/3 as well. However, if my schedule puts them more than around three months out I ask for 15% deposit and the balance of the first and second payment the day we start. A MOTIVATED buyer has NEVER given me a problem with this arrangement. It lets people know, politely, that you are in demand and your time is valuable.

My funniest example of a customer buying the pavers was when a lady showed me a pile about 5' tall and 8' wide of dentated pavers. She tells me, "My neighbors just redid thier pool deck and let us have the pavers." This, along with the pictures of Disney World she was showing me, her home depot landscaping, the six yard pile of topsoil on the drive, and disinterested husband led me to believe this wasn't the best situation for me and I politely excused myself.

[Bill Schwab]

By law, we cannot ask for more than 10% or $1,000.00, which ever comes as the lesser amount. After that, we require payment for work to dat every 3 days, and pre payment of all materials used on site. At the end, we leave no more than $1,000.00 as customer insurance for the final walk through and acceptance document signing.

Tyhis way, if someone decided to get cute with our money, they get cue using less of it. If the payments are not made within one day after the due date, we file a 10 day stop order and pull off the job until the money flows again.

We will do anything a customer wants, and do it very well at that...Pay schedules are non negotiable, it is our way or the highway, and that is that.

[Stonehenge]

Originally posted by Rex Mann
(does anyone else have clients who want to purchase the pavers on their own?...I do not understand their reasoning

We get that too, every once in awhile. I guess I don't understand it, either. Though I tell them "If you want to buy them, that's fine, but here's the deal:

1) You must order the quantity I tell you to, which will be 10-20% more than the project size.

2) If we run short, we are buying the pavers and will charge you for it later.

3) It's your responsibility to take care of whatever pavers are left over when we're done. We will not return them for you."

Fortunately, usually there are enough other red flags, too, that we don't end up doing work for people like that. My first year of business I met a couple that had already purchased the pavers - the couple had purchased an old beater pickup, and the pregnant mother of 4 had taken the truck to the local Menards (like Home Depot) and filled the truck about 8 times with pavers, unloading them in her backyard by hand. There was about 400 sqft in stacks in the back and side yards.

It didn't take a big leap for me to guess they weren't likely to spend money on me.

On a financial side note, our final balance is due 15 days from the invoice date, and we hold to it. Nothing makes me happier than to know my receivables are caught up.

[jwholden]

Half the battle is to have a process in place and stick to it. If you start trying to negotiate terms with a customer they think you are desperate for work and try to rake you over the coals. I find that people who bust my stones about payment invariably bust my stones about other things, especially free ad-ons.

[HRLand]

What about re-using pavers?

I met with a guy yesterday that built a patio by himself and did everything just the way the guy at home depot told him to. Now he wants it done right but using the old the pavers.

[site]

We get 50% on the day we start and 50% when we are done. If it's a long job we will send weekly invoices after the initial deposit to keep the $$$ flowing. Right now we are doing a job for a fancy college, and if we want the job we do it on their pay terms-30 days after invioce.

[chc]

We get 50% on signing, balance plus any change order costs due on completion. So far we haven't had anything other than checks in hand.

[HLS]

My company gets 25 at signing 25 the day we start and 50 is due by 15 days after completion . I never had a customer not want to give a deposit , I have had customers want to give a bigger deposit then what i asked for .


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