MemberDecember 27, 2010 at 9:04 am
For the new year we are going to enforce a deposit rule and try and stick to it! To help with cash flow and as we moved to larger premises we need our money to help with the bills/materials.
There has been many topics regarding this but i cant find the one i read a few months ago with regards the policies people had in there shops as it had the perfect short and sweet message.
This is what we had thought, if anyone can find the last topic then let me know.
All jobs will not be started unless accompanied by a deposit, and we will not release the job until paid in full. We are in the business of making signs/graphics not lending money. No exceptions! Thanks
MemberDecember 27, 2010 at 9:28 am
sounds OK, I’d just leave the "we are in the business of making signs, not lending money" bit out.
Sounds a bit ‘cheap’ and unprofessional.
MemberDecember 27, 2010 at 9:42 am
Tim, I think I would leave out the bit about lending money, and state maybe something like:-
Please may we remind our (non account) customers of our terms and conditions:
We require a (99)% deposit with order, and the balance on completion.
Complete terms and conditions are available on request.
No further explanation is necessary.
Good luck in the new premises.
MemberDecember 27, 2010 at 9:49 am
Cheers lads , like yours peter will get something like that up, always mean to get some photos up of new premises but its always in a mess, might get it cleaned up over the Christmas break and put some photos up.
MemberDecember 27, 2010 at 3:43 pm
I always include " Deposit of x% required to confirm ALL orders" Remainder due on completion (or for the privileged) 30 days from invoice date!
I have had some success in offering a 2-5% discount on payment within 15 days.
Price accordingly and offer a payment in full discount on placing the order!!
MemberDecember 28, 2010 at 12:09 pm
If you charge a deposit equivalent to material cost (appx) +10% you will cover any actual costs. Our wording:
A deposit of £25% is required on all orders, full balance on delivery/collection.
We use 25% of the job cost, because that is more than enough to cover materials +10%.
MemberDecember 28, 2010 at 12:19 pm
Dave no idea how you do your pricing but material costs + 10% wouldn’t cover my actual costs in fact it wouldn’t come close. As most of the price of a job is labour and 10% isn’t going to cover my labour costs on any job.
Personally I think the 50% deposit up front is a far better idea and I would have thought anyone who is prepared to pay a deposit isn’t going to worry to much if it’s 25% or 50% of the total cost.
MemberDecember 28, 2010 at 12:33 pm
I have a rather wordy little sign out in the office but it’s worked for me for many years. Some of it is:
*HAGGLING WILL NOT BE TOLERATED
*NO SKETCHES PRODUCED WITHOUT A DEPOSIT
*PAYMENT IN FULL IS REQUIRED WHEN SERVICES ARE RENDERED
That could be shortened to:
50% deposit required on all orders-Full payment due upon completion
(unless other arrangements are made prior to sale)
That would cover the big net 30 companies.
But I think I’d omit the line in parenthesis.
So sick of people expecting a free lap dance just because they deigned to stop in.
Hahaha I’m kidding about that part.
MemberDecember 28, 2010 at 2:37 pmquote Jill Marie Welsh:
H’mm Free Lap Dance, Huh!
You tube video please! Thanks 😮
MemberDecember 28, 2010 at 2:40 pm
Ask about our Payment Terms,
100% Down! Nothing to pay each week.
MemberDecember 28, 2010 at 4:34 pm
I tend to go 50% deposit with new customers, that way it all seems quite friendly and not distrusting. I feel it gives the indication you’re a working person who needs a cash- flow, above board, honest and fair. If my potential new customer comes across as a chancer, I increase the percentage a little. The remainder of the money on collection is the important bit. If someone has given you half up front, they are unlikely to not come back.
You have to be distrusting to get on in business, but you must never appear to be mistrusting to get on in business. I think that makes sense 😕
MemberDecember 28, 2010 at 5:02 pm
Have to agree with that Bob, think one of my biggest problems was that I was to trusting.
Make sure any notice you put up is big enough and clear enough for people to see as soon as they come in that way they will know what to expect before you have even spoken to them.
MemberDecember 28, 2010 at 5:51 pm
Fundamentally, people are not nice, lots of people only appear nice because their true personality would make them socially unacceptable. Interestingly, no one will ever see themselves as one of those people. To add to this, people are becoming generally more aggressive, and far harder to explain things to. I’ve never really had problems with debts, I’ve probably lost around £100 in the last 25yrs, but I am finding people are harder to communicate with.
MemberDecember 28, 2010 at 7:28 pmquote :
Not surprised if you think nobody is nice !!!!
MemberDecember 28, 2010 at 7:50 pm
Didn’t mean it quite as literal as that! I was more trying to put the emphasis on "deal on a handshake" days of business are fast becoming a thing of the past.
We’re all out to make a living one way or another, it’s just standards and code of conduct for want of a better word are fast slipping. Trust in business, or at least relatively low cost business, which mostly ours is, people used to hate anyone to think they couldn’t afford to, or wouldn’t pay. These days it’s not uncommon for a so called business/tradesman to knock another for a minimal amount of money. It was more a pointer to be aware of than a slating of humanity.
MemberDecember 28, 2010 at 7:55 pmquote Bob Clarkson:
Nothing has really changed, when i was a lad the notice in our corner shop read "do not ask for credit as a refusal often offends"
there were cowboys around before you and I were born. Some people are just out to rip others off. Mostly though, people are honest, but because of the minority, we all need to look after our elves.
MemberDecember 28, 2010 at 7:59 pmquote :
especially the little green ones !!!
MemberDecember 28, 2010 at 9:07 pm
Peter, I think human nature has changed quite a lot, yes there were those who would just rip people off long before we were born I can’t deny that but I’m not so sure there were as many of them as there are now.
Just my opinion but these days it seems like most people want to know what’s in it for themselves before they will do anything.
Sorry we seem to have wandered a bit off topic
MemberDecember 29, 2010 at 1:14 pm
The out for themselves culture has increased, and it really is a shame.
So to prove what I was meaning I’ll give an example. If you done a sign, with no deposit, and let a sign out to a complete stranger, then said drop the money in when you feel like it, you’ve potentially given it away! Who would actually take the risk of doing it? Now put the shoe on the other foot, if any of you were in your customers "now" position, how many of you would openly admit you’d take advantage and never pay?
This is why I stick to the essence of my slightly damming statement. How many people do we believe are as honest and decent as we believe ourselves to be?
I know that only loosely fits in with the whole deposit scenario, but I do find logic and response very interesting.
MemberDecember 29, 2010 at 6:29 pm
Iv’e posted on this before…. get paid up front! I have one customer who doesn’t pay first, but he’s also my unit landlord, so we offset against the rent each month, we still pay each other but he sends my cheque with my invoice and viz a viz…
As yet I have never come across a customer who has told me he didn’t want to go ahead when I asked how he wanted to pay his bill before I started any work! I usually say when closing the deal, "how would you like to pay for that today?"
I guess I have just got used to asking for the money up front. I think if we are honest we are a little scared of asking for money, I know I used to be. But then again most of my orders are placed on line so people pay straight away anyway.
Perhaps you should have a try at getting the payment first! I know some if not most people are going to say…"I wouldn’t get any business if I did that"
"Whether you think you can or whether you think you can’t, you probably right!" (Henry Ford)
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