Business Practice/Payments/Deposits, Etc.

[pbar]

This might get moved to another forum, although it does have some relevance here, and I've wanted to post it here as I know most of you guys and would welcome your opinions.

Have you guys had any work done on your homes, whereas you've had to pay a sum of money before the job is done, and/or do you request a deposit before you might start a large job?

My scenario -

I've has a guy round to quote for a a new porch and bay window, a local double glazing PVC guy. Liked his quote, so got him back to measure up properly and off he went, telling us he'd be in touch in 3 or 4 weeks to fit them. All good so far.

Then, a couple of days later, we get a call from his wife, asking us for a cheque for £1300, which we should make out to Alexander Windows, this is who he buys them from. She called it a deposit.
Yet that's a whopping 48% of the total cost.

Obviously this set alarm bells going.
Can any of you guys think of why they've asked for that, have you come across anything similar, or do you do this on bigger electrical work perhaps?

I can only think that their trade account might be on stop, or are behind with their supplier payments.

I phoned to ask why, as we've had them fit other windows previously, and they never did this then, and she just said that's the way they do it now as they don't want to become bankrupt. Strange thing to say.

There was a strange silence when I said about trade accounts, and why it's odd to ask for a 48% deposit, and she didn't really have an answer.

I've put the job on hold for now, as I think it's far too risky paying such a large amount up front, and has many pitfalls.

 

[CortinaV8]

My plumber wanted 50% of the job cost upfront, about £1200, the cheque was made out to HIS company, I thought it was a bit odd but I can see why on larger jobs they would charge for materials upfront.

End of the day, I know where the guy lives......

 

[experience]

Pay the deposit by credit card, your then covered by the credit card company if they go bankcrupt or dont carry out the job.
On big jobs i ask for 25% on the 1st day to cover materials, another 25% 1/2 way through the job and the remaining 50% on completion.

 

[pbar]

Pay the deposit by credit card, your then covered by the credit card company if they go bankcrupt or dont carry out the job.
On big jobs i ask for 25% on the 1st day to cover materials, another 25% 1/2 way through the job and the remaining 50% on completion.

Thanks for the advice.
They actually asked for a cheque, made out to the window manfacturer, as opposed to themselves.
It must be great (as a business) if you can get every customer to buy the materials for you, you'd have a purchase ledger of...zero.

I think it's very risky and messy. Do you know - would paying on a credit card help if, for example, something was delivered wrong. For instance, the doors could be opening in, instead of out. I'd say it was wrong, the window guy would say, I'm sure you said that, I'd say no, we'd be forever arguing, meanwhile I've paid for all the stuff and would be up the creek.

I find what they're asking quite insulting, especially with being a returning customer who they had no issues with before.
I can understand a deposit, but 48%, the total cost of materials?! I don't think so.

 

[Shytalkz]

Sign o' the times. We're all getting hit by the lack of money floating about, so credit terms on jobs will get squeezed as well.

Don't take it personally. I'm sure that for every good customer like you that they've had, they'll have at least one other who's ripped them off and cost them. Unfortunately, you then have to work to the lowest common denominator and assume the worst.

 

[str]

why don't you use glazing firm as an installer only and take on the supplier direct, given that you seem to be paying them direct any way - that way if something happens to the glazing firm, at least you still have what you have paid for and can get another company to fit

 

[ban-all-sheds]

My mum has had a few small building jobs done by a local company, been in business for years, good WOM rep etc, and he told her never EVER pay for anything which has not been done or delivered.

Stage payments are fine, but not a penny in advance....

 

[Blasphemous]

I agree with Shytalkz, sign of the times

At the end of the day if you aren't happy doing it that way ask someone else to quote and see if they operate the same policy (don't ask them, wait to see if they mention it).
It'll also be interesting to see what the difference in price is (if any).

 

[pbar]

why don't you use glazing firm as an installer only and take on the supplier direct, given that you seem to be paying them direct any way - that way if something happens to the glazing firm, at least you still have what you have paid for and can get another company to fit

Again, it's open to pitfalls that I think. If the windows come in wrong size for example, due to installer having measured them wrong, I'd have paid for useless windows.

 

[pbar]

My mum has had a few small building jobs done by a local company, been in business for years, good WOM rep etc, and he told her never EVER pay for anything which has not been done or delivered.

Stage payments are fine, but not a penny in advance....

My thoughts exactly.
Who in the right frame of mind would pay £1300 to have building/windows work done, before the job is started?

 

[pbar]

I've had loads of work done previously, by various companies, extension, windows, new roof, etc.

I've never been asked to pay up front before.

Far too risky. Yes, I will be asking around for more quotes.

 

[Blasphemous]

Again, it's open to pitfalls that I think. If the windows come in wrong size for example, due to installer having measured them wrong, I'd have paid for useless windows.

So get them to come and measure them then. FFS its not rocket science!

 

[Shytalkz]

Blimey, what gives you cause to think that the windows would come in the wrong size to start with?

As Blasph says, get them around to measure up in the first place - which, if they're replacement ones, they will do, as a matter of course. If they are then wrong, it's up to them to sort it at no cost to you.

 

[pbar]

Blimey, what gives you cause to think that the windows would come in the wrong size to start with?

As Blasph says, get them around to measure up in the first place - which, if they're replacement ones, they will do, as a matter of course. If they are then wrong, it's up to them to sort it at no cost to you.

It's just an example of one of the things that could go wrong.
Would you give someone £1300 to order something that someone else (who you now don't trust) has measured.
And I'm no expert window fitter so don't feel confident doing it myself, it's far from a straighforward square window job.

 

[Blasphemous]

Would you give someone £1300 to order something that someone else (who you now don't trust) has measured.
And I'm no expert window fitter so don't feel confident doing it myself, it's far from a straighforward square window job.

Which is why I said.... 'get them to come and measure them then'. THE MANUFACTURERS!