50% deposit?

[rhinosaw]

Have had a couple of quotes for a replacement boiler both around £3k.
Both companies require 50% deposit which I feel is too much, paying £1500 7 days before work commences.
Tried to negotiate but they wouldnt budge.
I don't mind paying a deposit but not 1500 , wondered what the pros thought?

 

[Mottie]

Pay the deposit on delivery of the boiler?

 

[rhinosaw]

Motman
I got the impression that they bring the boiler with them on the day of replacement, I can't see them agreeing to that in view of what they have already said. Has to be ,7 days before

 

[McCombi]

I started taking deposits to cover for materials/boiler etc now also.

Got burnt with couple of jobs and really screwed me financially so don’t take risk now.

Don’t see issue personally, it’s for materials needed for job not like any labour money is being asked for.

Just my opinion nowadays however before I got burnt, I wouldnt have thought about asking for money up front.

 

[Mottie]

When I had my boiler done I paid in full on the day when the job was done.

 

[rhinosaw]

Take your point about getting burnt McCombi, just thought that 25/30% more reasonable though after all a 12kw boiler about 1k

 

[oldbutnotdead]

Are we talking large companies here or small local suppliers? Prepayment demand that size from a large company is irritating but (from their point of view) it does prevent you from accepting a better quote from a smaller supplier- your money is probably at less risk. If a smaller company then you might want to do a bit of due diligence- how long have they been trading, what did their last years' financials look like (all free from Companies House)- if they go bust in the gap between deposit and install then you're going to be down £1500 unless you pay the deposit on a credit card.
And if it isn't a company but is a bloke in a van that doesn't take credit cards then be very wary- if he's having to pay upfront for materials then his credit history might be a tad suspect. Offer to pay the 50% by online transfer when he arrives and plonks the new boiler inside your front door? And maybe get a few more quotes- if this is just a boiler swap (not conversion from oldschool to combi) then 3k is a bit rich

 

[rhinosaw]

Thanks for your comments oldbutnotdead, 1 company is a gas shop in the high Street, the other is a small co, not sure of history.
Going from vented system to system boiler so maybe £3k is nearly right, yes maybe more quotes

 

[durhamplumber]

And if it isn't a company but is a bloke in a van that doesn't take credit cards then be very wary- if he's having to pay upfront for materials then his credit history might be a tad suspect.

How about he/she is perfectly respectable but has been burned by dodgy customers and is using his brains!

 

[oldbutnotdead]

How about he/she is perfectly respectable but has been burned by dodgy customers and is using his brains!

That's another feasable scenario, and a hazard of being in business. Wonder if the OP lives in a high (credit) risk postcode?

 

[ollski]

I can understand the requirement for deposits but can’t see why it should be more than a restocking charge at the merchants plus a handling fee. I don’t charge one but if I felt it might be appropriate I may decide to. That said I’ve never been burnt except by business customers.

 

[McCombi]

I take deposits to cover all materials now.
If customer doesn’t pay at end like many do nowadays even when no issue with workmanship at least it’s only labour (bad enough) that we are losing out on.

People say go to small claims etc, just kore unnecessary time and effort

 

[polesapart]

On jobs like boiler swaps my terms are 50% on commencement, balance on completion.

It seems fair to me, keeps things simple.

I can see the point of requesting 5 or 10% deposit to book the work in but have never really found it necessary.

 

[Notch7]

For joinery work, I ask for 50% up front, but given every piece of joinery bespoke, if its made and the customer has paid nothing its easy for him to just refuse to pay up as hes not out of pocket.

With any sort of work, there is a risk from both sides. For a boiler, money 7 days in advance means a slot can be booked with confidence, if the deposit is sllowed to be paid the day before or on the day, if the funds dont get transferred then it may mean a day with no work.

 

[dilalio]

I try and keep things on an even keel, financially, that way the element of trust is maintained, which is good for a healthy relationship