Deposits On Jobs - Paint Talk - Professional Painting Contractors Forum
CLICK HERE AND JOIN OUR COMMUNITY TODAY, IT'S FREE!
Go Back   Paint Talk - Professional Painting Contractors Forum > Painting Forum > General Painting Discussion

Reply
 
Thread Tools Display Modes
Old 09-22-2007, 04:46 PM   #1
Junior Member
 
Join Date: Sep 2007
Posts: 5
Rewards Points: 10
Thanks: 0
Thanked 0 Times in 0 Posts
View bluesage's Photo Album My Photos
Default Deposits On Jobs

Hi All,
My question is on taking a deposit for a job. I understand that the idea of a deposit is so if the person backs out of a job at least by taking a deposit you can recoup your paint costs and possibly a days loss in pay. Correct? Also what do most do if the customer asks for the deposit back?
Thanks.
bluesage is offline   Reply With Quote

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. PaintTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

Sponsored Links
Advertisement
 
Old 09-22-2007, 05:07 PM   #2
Ohio Painting Contractor
 
Join Date: May 2007
Location: Cleveland, Ohio
Posts: 275
Rewards Points: 250
Thanks: 0
Thanked 6 Times in 4 Posts
View welovepainting's Photo Album My Photos
Default

Give it back! Unless you have occured charges like already ordered a non returnable paint, spent time on the project other that the estimate.
Im pretty sure our contract says unless notified within 3 business days in writing we no matter what keep 10% of the deposit. Although I myself dont think ive done that I just give it back fair and square.
__________________
Residential & Commercial Painters Cleveland, Ohio

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Last edited by welovepainting; 09-22-2007 at 05:10 PM..
welovepainting is offline   Reply With Quote
Old 09-22-2007, 06:01 PM   #3
Systems Fanatic
 
Brian's Avatar
 
Join Date: Apr 2007
Posts: 1,390
Rewards Points: 500
Thanks: 0
Thanked 496 Times in 161 Posts
View Brian's Photo Album My Photos
Default

Taking a deposit shows that the customer is serious. If they won't put some money down, why should I spend time scheduling the job, ordering materials, etc.?

I've only had 1 customer put down a deposit and then back out. He got his deposit back.

Brian Phillips
__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Brian is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 09-23-2007, 06:41 AM   #4
Born To Be Mild
 
bikerboy's Avatar
 
Join Date: Sep 2007
Location: MD
Posts: 4,956
Rewards Points: 2,000
Thanks: 2,450
Thanked 1,704 Times in 1,000 Posts
View bikerboy's Photo Album My Photos
Default

In my opinion, once the customer gives a deposit they are psycologically committed. I take them to cover materials and wages.
Never had one back out, but unless you incur any costs, give the deposit back.
bikerboy is offline   Reply With Quote
Old 09-24-2007, 10:05 PM   #5
 
Join Date: May 2007
Posts: 745
Rewards Points: 500
Thanks: 0
Thanked 4 Times in 3 Posts
View Tmrrptr's Photo Album My Photos
Default

A customer should get deposit back, except for product purchased for their job, and labor for time expended at fair rate.

CA only allows 10% deposit... NOT enough!
r
Tmrrptr is offline   Reply With Quote
Old 09-30-2007, 12:10 AM   #6
....
 
timhag's Avatar
 
Join Date: Sep 2007
Location: Pittsburgh
Posts: 4,698
Rewards Points: 2,000
Thanks: 244
Thanked 314 Times in 218 Posts
View timhag's Photo Album My Photos
Default

I always ask for 1/2 down and remainder at completion. In my 6 years in business, i have had only one person refuse my method of payment. I have never been asked to give money back.
timhag is offline   Reply With Quote
Old 09-30-2007, 07:37 PM   #7
 
Join Date: May 2007
Posts: 745
Rewards Points: 500
Thanks: 0
Thanked 4 Times in 3 Posts
View Tmrrptr's Photo Album My Photos
Default

JUST got in a heated discussion with a fellow at a trade show in a CA license Board booth who was telling walk-up people the best part about a licensed contractor is they can't ask for any more than 10% down in advance.

Pushed MY button!

I told him it was downright WRONG to expect contractors to literally invest in clients projects.
His response was, "you get your materials on credit, don't you?"
I replied, "Your credit is very important, these days, and you should do everything to protect it. What if the projects owner gets run over by a truck or goes bankrupt during construction?"
His response was, "I'll file a lien."

I then asked him, "And what does that have to do with getting your money due and paying your crew and material suppliers? If the house was foreclosed on today the bank might get $150,000 - $200,000 less than the amount that was loaned how much do you think you'll get?"

Then he changed his tack, and told me 10% of licensed contractors were crooks that stole peoples deposits, 20% knew what they were doing and the rest didn't.
I replied that it was obvious State licensing was just another method to suck the lifeblood out of the working man and had nothing to do with honesty or competence.

I had to back off before I really exploded with a LOUD speech about blood sucking government parasites. They can't even build a fence at the border.
r
Tmrrptr is offline   Reply With Quote
Old 10-01-2007, 05:57 PM   #8
 
Join Date: Sep 2007
Posts: 27
Rewards Points: 25
Thanks: 0
Thanked 0 Times in 0 Posts
View KellyRose's Photo Album My Photos
Default

I agree that the deposit is to prove that the client is psychologically committed. There are times when I am pre-booked for months and to have somebody back out at the last minute isn't cool. Before I started taking a deposit, I had somebody do that to me. I had already lined up a crew and bought the supplies. That was when I started taking the deposit and it hasn't happened since. The deposit is to hold the date and also once you have purchased specific colors and products, it is only fair that the client go through with the plan.
KellyRose is offline   Reply With Quote
Old 10-01-2007, 06:17 PM   #9
Senior Member
 
Dave Mac's Avatar
 
Join Date: May 2007
Posts: 4,540
Rewards Points: 2,924
Thanks: 4,377
Thanked 2,492 Times in 1,405 Posts
View Dave Mac's Photo Album My Photos
Default

I here and understrand about the client being commited, but in 20 years in this buisness, i can say i have had only a handful if that back out on me, do you guys really have a bunch of clients backing out of you all the time?????

I think it shows you are more proffesional if you dont require a deposite, you need 200 up front for materials?? our average job is around 2700 and takes less then a week to complete, Im not going to ask someone to cut two checks in a week, that seems desperate to me. If the job is over 5000 i see the need and will ask.

In my market many of the big repaint company' do not require a deposite, this helps in sales, and I do it as well. No risk

thanks
dave mac
Dave Mac is offline   Reply With Quote
Old 10-01-2007, 08:52 PM   #10
 
Join Date: May 2007
Posts: 745
Rewards Points: 500
Thanks: 0
Thanked 4 Times in 3 Posts
View Tmrrptr's Photo Album My Photos
Default bg

Quote:
Originally Posted by Dave Mac View Post
do you guys really have a bunch of clients backing out of you all the time?????

...I have quite a few change the scope of the project...

In my market many of the big repaint company' do not require a deposite, this helps in sales, and I do it as well.

...Big companies have their own secretarial depts and legal dept.
They just change gears when a default occurs, and earn their keep.

No risk

...Really?
Sounds like ALL risk, to me.

Client gets lasting value, at least for many years to come.
And the workmen get wages, to bleed another day.
And you want to short term finance their project?
I fail to see the wisdom here.


Whew! I hope I didn't get that quote ALL mixed up!
r
Tmrrptr is offline   Reply With Quote
Old 10-04-2007, 05:26 PM   #11
Senior Member
 
Join Date: Mar 2007
Posts: 1,352
Rewards Points: 500
Thanks: 55
Thanked 367 Times in 147 Posts
View Nathan's Photo Album My Photos
Default

30% down to get on the calendar... but I would give the money back if someone cancelled. I would hate to live in CA and deal with those laws.
__________________
Nathan
Leveler.com
Nathan is offline   Reply With Quote
Old 10-04-2007, 06:00 PM   #12
Rock On
 
slickshift's Avatar
 
Join Date: Apr 2007
Location: Cape Cod, MA
Posts: 2,451
Rewards Points: 1,000
Thanks: 68
Thanked 132 Times in 102 Posts
View slickshift's Photo Album My Photos
Default

Quote:
Originally Posted by Tmrrptr View Post
CA only allows 10% deposit... NOT enough!
Quote:
Originally Posted by Nathan View Post
....I would hate to live in CA and deal with those laws.
Same here in Mass

Here's the work-around
10% Deposit is required to schedule
30% due at(to) Start Work

Not an elegant solution, but it helps
__________________
"History shows again and again how nature puts up with the folly of men"
-Blue Oyster Cult

slickshift is offline   Reply With Quote
Old 10-04-2007, 06:58 PM   #13
 
Join Date: May 2007
Posts: 745
Rewards Points: 500
Thanks: 0
Thanked 4 Times in 3 Posts
View Tmrrptr's Photo Album My Photos
Default

The Slickshift Speedranger is correct as usual. There's ways to work around it... but now my kettle's starting to boil!!!!

Why should we have a need to work around a govt agency?
Why has govt allowed a licensed contractor to be no more than a member of a $200/month club?

It should be an indication of skill and experience, and it is NOT.

The crudmuffin I spoke with at the trade show was at an OFFICIAL CaCSLB booth and he directly told me MOST licensed contractor do not know what they are doing. Yet he strongly defended the boards determination that 10% deposit is sufficient to begin a job.

I think maybe we have too much government.
r
Tmrrptr is offline   Reply With Quote
Old 10-27-2007, 08:19 PM   #14
Senior Member
 
aaron61's Avatar
 
Join Date: Apr 2007
Location: clearwater,fl
Posts: 6,326
Rewards Points: 2,030
Thanks: 3,034
Thanked 4,211 Times in 2,057 Posts
View aaron61's Photo Album My Photos
Default

Any job under $500 is upon completion $500 to $5,000 1/2 down balance upon completion things change from there 1/2 1/4 1/4. shows commitment from customer, holds calendar for scheduling, less to worry about. It's strictly business. All deposits are refundable minus any non returnables
__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
aaron61 is offline   Reply With Quote
Old 10-28-2007, 03:22 AM   #15
 
Join Date: Oct 2007
Posts: 3
Rewards Points: 10
Thanks: 0
Thanked 0 Times in 0 Posts
View spinapainting's Photo Album My Photos
Default

have business in nj dont take deposit,request 1/3 down at start,1/3 half done,1/3 at completion.never had any one back out or complain about pymt plan.p.s. i do half and half on completion on jobs under $500
spinapainting is offline   Reply With Quote
Old 10-31-2007, 08:44 AM   #16
 
Join Date: Apr 2007
Posts: 54
Rewards Points: 75
Thanks: 0
Thanked 0 Times in 0 Posts
View Ken S.'s Photo Album My Photos
Default

Keeping in mind 95% of our work is residential repaints, wallcovering removal/install:
I stipulate in contract mim. $100 deposit payment upon signing of agreement, then 30% - 50% before/at start-up, then balance due when job completed(usually then and there, unless otherwise agreed to and written in contract payment schedule). I also accept major credit cards.
Ken S. is offline   Reply With Quote
Reply

Tags
None

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Painting block wall with alkaline deposits? tonto Surface Preparation and Application 2 01-11-2008 05:05 PM
Jobs colorbrush General Painting Discussion 7 01-08-2008 01:03 PM
Jobs colorbrush General Painting Discussion 2 01-03-2008 05:37 PM
need some help bidding jobs mboccuzzi General Painting Discussion 12 12-01-2007 02:07 PM
Financing your jobs? bikerboy Business, Marketing, and Sales 19 10-04-2007 09:45 PM


All times are GMT -4. The time now is 02:59 PM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Content Relevant URLs by vBSEO 3.6.1
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
Our Pro Sites Network
ContractorTalk.com | DrywallTalk.com | ElectricianTalk.com | HVACSite.com | PlumbingZone.com | RoofingTalk.com