Customer deposit?

[Cirrus]

I have a customer who has asked me to carry out

 

[PC Electrics]

Where the materials cost is substantial and/or (like this case) forms a high proportion of the job cost, I would ask for the materials cost up front (a cheque made out 1 week before job start or cash a couple of days before).

Any customer who is reluctant to give a deposit is, in my view, likely to be a bad payer.

Another tack (which I have used) is to give the customer the materials list and send him to your wholesaler. Warn your wholesaler in advance and get him to charge the customer "retail" on the prices and then throw you a "free" reel of cable next time you're in. I usually do this for clients who are able to claim back the vat because I'm not vat reg'd.

Trust and respect are very much 2 way streets, not one way. Customers need to realise that.

 

[Zeespark]

If any job that I estimate be

 

[PC Electrics]

Also, a deposit (esp if paid by cheque or BACS) is proof of your contract. So, should you be unfortunate enough to end up in the County Court it will count for you.

 

[Theorysparky]

I got 45% up front for a 1k job....

trenching armoured for a garage conversion and first fix

i now have to wait 2 weeks for the builders

customer was happy

another option...

if you have broken the estimate labour materials get the customer to pay the wholesalers direct

they need the bits you dont......you may loose a bit of mark up but add an hour on.

got a 2nd fix and cu change next week

told the builder what he needs,,, got the wholesaler to price it pick it and deliver it builder pays..

my mark up on bits dont you worry about that...ways and means

 

[wozz]

i generally dont take deposits but if doing a job that is clear first and second fix, after first fix i will have half labour half materials.

I know this may not be that applicable but i thought if you are taking deposits you should be offering insurance aswell to insure the deposit from the customers point of view incase you go under with their deposit.

 

[batty]

Generally only work for people I know or for people I have worked for before so deposits are not necessary. I do not advertise so don't tend to get that many people ringing for quotes although I am in yellow pages and Thompson so do get a few but generally these are people that are getting a few quotes so I will not usually be cheapest so don't get that work. on larger jobs I get stage payments that way if something does go wrong you are not to much out of pocket.

 

[Evans Electric]

I would'nt pay a deposit myself TBH , to a builder say, but would make stage payments, as is normal.

Most of my work is commercial and you can't ask for a deposit .

One thing that happened years ago when I worked for my mate, we won the contract for a British Gas Depot in West Brom which had to move from a proposed new road.

The quote included employing the DNO to install the new 400A elect. supply and paying them

 

[SPECIAL LOCATION]

I have a customer who has asked me to carry out

 

[Evans Electric]

Yes , as Specs says , have a written agreement/ contract between you . You have to take risks if you are to work for yourself and that is one of them .

Its twopenny -halfpenny plasterers etc who call themselves tradesmen but then get the customer to buy the materials and sometimes pay them up front.

 

[Cirrus]

Well, I asked them for the full amount up front and they have agreed with no questions. Result

 

[paul b b]

i would supply a written contract for customer peace of mind, one problem i have come across is the cash flow issue, job may only be 2 days but if you supply 500 quids worth its alot to have out standing.

one more thing to look out for, a mate of mine got done by taking a 'deposit', aparrently this is refundable upon customer request, best phrase it as a 'part payment'.

oh and i have a contract i can mail to you if you want

 

[Evans Electric]

Well, I asked them for the full amount up front and they have agreed with no questions. Result

Thats good , you won't be out of pocket.

Cirrus , I'm sure you are a fine ,trustworthy and most excellent guy so please don't take offence at my repy .

As I said before , if you were a builder looking at building me a new kitchen I'd be showing you the door at the mention of paying up front.

I do have difficulty with payment up front .

I assume you do not have a wholesaler account with 30 or 60 day terms which would negate the need for standing out funds for a week.

Deke

 

[baldelectrician]

I take deposits for any jobs >

 

[paul b b]

I take deposits for any jobs >

 

[baldelectrician]

all in

 

[Doc Hudson]

Well, I asked them for the full amount up front and they have agreed with no questions. Result

That is good news and thank you for posting a progress update Cirrus. It is always good to hear how questions progress. I hope it all goes well for you on this job.

Doc H.

 

[Lurch]

You can use other methods to take card payments and pay a lot less than

 

[paul b b]

You can use other methods to take card payments and pay a lot less than

 

[Cirrus]

What about using Paypal to accept cards? I know there is a small handling fee but at least it would enable you to take card payments???