[bluesage]

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.

 

[welovepainting]

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.

 

[Brian]

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

 

[bikerboy]

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.

 

[Tmrrptr]

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

 

[timhag]

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.

 

[Tmrrptr]

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

 

[KellyRose]

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.

 

[Dave Mac]

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

 

[Tmrrptr]

bg

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

 

[Nathan]

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.

 

[slickshift]

CA only allows 10% deposit... NOT enough!

....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

 

[Tmrrptr]

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

 

[aaron61]

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

 

[spinapainting]

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

 

[Ken S.]

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.