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Starting out asking for a deposit
Anonymous user 09/03/2024 - 2.52 PM
Im just starting out my own business after being on site and working for various companies over the years so i dont really have enough money to fund my first couple of jobs is it ok to ask for a 30% deposit to cover materials and plant hire. I know alot of builders ask for 10% and some dont even ask for a deposit. But 30% would cover a big bulk order to get the job running, is this ok to ask? Or way to much? Advice much appreciated in advance
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6 Answers
Anonymous user
I've learned to take all material upfront and now take a minimum of 10 percent deposit aswell for running costs, this ensures the client has the money to pay for the work at all and also in legal prospects acts as contractually accepting your quotation.
I do invoice for the amount btw.
Bottom line if your client doesn't trust you enough to make a partial payment your going to have problems on the job always.
Answered3 October 2017
3
CSM Plastering & Building Preservation
Rating: 5 out of 5
I Can't see why asking for a 30% deposit should be a problem to be honest. obviously you need trust between BOTH sides!! yes customers do get ripped off occasionally by cowboys and are weary about handing over money before work starts but i know good honest tradesmen who have been ripped off by dodgy customers too so bear that in mind. If you have a big job on the material bill can be thousands and it's a lot to pay out before you get any return! Maybe ask for partial payments on different stages of the build so wages are being paid and the customers see the work progressing..always a win win!
Hope this helps mate
Answered22 September 2017
2
Anonymous user
Whilst I note that there are numerous answers within this blog , they are all from one side --The TRADESMAN /contractors who all say YES Lets ask and have a deposit -up front payment . Thats an ideology and just not the best way forward if you want to grow .
I'm a contractor , 35 years experience and have a view from on the fence with this matter as a contractor and as a consumer/client and customer at times .
Its a tough old world out there and as with other professions the building trade has at times taken on a bad name and not given the market place /the customer what it should have being fair to comment that its had its fair share of "Cowboys". That is to say customers have been let down from bad workmanship through to an overall bad service .They have lost money , they have poor finished works . Im sorry to say I see it every week.
If we as contractors , professional tradesman are to gain the trust out there , bring the integrity back as a whole to the smaller construction home building market , then I believe that as a bonafide tradesman , with contractors public and employer liability insurance , with tools of the trade , vehichle and the likes that we can and should trust in ourselves to provide the very best experience of : advice with regards the work needed/required,to produce nicely finished works and be proud and passionate about our workmanship,to ensure punctuality is at its best turning up each and every day and on time,overall to provide a service throughout all of which shall show integrity and the higher end of ones work ethos and a big string to your bow .
Of course terms can be scheduled and agreed if works are say greater than 10k but as an interim payment after 7-14 days not as a deposit or because you need material money unless of course a product is truly to special order/manufacture.
We all know ,if you receive a placement order contract on construction site works the basics are that there shall be no deposit,no starter payment .
No part payment after a couple of days or when you have material arrive , its how it is , but a monthly account shall be in place .
So I say believe in yourself, provide and strive to offer the best from all angles of your outfit and not to say never but clients will commend you, talk about you- in a good way and return business shall be finding its way back to you.
Good luck to all .
Best Regards
Neil Fox
Answered6 December 2017
1
Anonymous user
Yeh I have just been ripped off for £2500, The customer never paid me so Im well out of pocket mate. So I'll definitely be asking for a percentage upfront in-future. Nothing wrong with asking. Good luck.
Answered25 September 2017
0
Capel Heating
Rating: 5 out of 5
I always ask for material money up front. I haven't had a problem yet. I always offer an invoice if that helps.
Answered27 September 2017
0
Anonymous user
Always ask for deposit whatever it is u need to be secured and plan our work schedule. Taking 3 payments equal to 33.3% it’s my standard. One i take before even i put my leg on site.I took the lesson once client was calling me to come and price the job like 3 times, at the end ha wants the quote for back garden soo i quoted him up. Then he was assuring me the job will go ahead. During the week before the job meant to start he went quiet. I was sure i will get it soo i would be busy for two weeks and did not take any bookings. End up messed around 5.5k£ job, he says is not ready etc.How come ha can be not ready when he seen me 3 times? That was it i survived taking some small jobs actualy one tiny patio for 400£ when weekly i meant to make around 1.4£ k to be ok. That was it now always 33.3% plus materials at start. Now i got the job to repair a patio done by cowboys and people are scarry to pay as the cowboy was promising them many times he will come back. and sort it out. I advise the customer to make a claim against him as the do have a massive water paddle in the corner of their patio. Every single tile with a different fall😂I make a exception and agreed to be pay at day one, 50% deposit and they did pay for the materials. Do not start or agree anything without up front. Whatever happen u need to look after our business. And this is it. If someone is scary let it go.Anyway when u quoting thru my builder u setting up our payment schedule when customer accept the quote he i liable to pay the discussed payments regardles. I am Ltd company soo easily to be traced no risk, and easily to be suited😂 Your business always at first place👍🏻👍🏻👍🏻
Answered30 March 2023
0