Is it normal to ask for a 50% deposit before starting work..

[namsag]

Its a two way thing customers pick us but also we can pick our customers .
Listen to what gets said in merchants in the pub from family also where did they get your number from.

Some people seem that desperate for work they put themselves in a position to be ripped off then moan about it.

Try using your common sense. Its amazing the hassle it will save you

 

[ChrisR]

I feel that as I get older, I get better at judging people, and better at listening to my intuition. It learns better than I do...

I rarely mention a deposit, usually because I know the customer in some way, by connection. Haven't taken one in over a year. You can trust most of the people most of the time.

If I don't know someone I might ask if they're happy to pay a deposit. Any sign of reluctance and I'm wary. Just occasionally the attitude displayed has been enough to say I've changed my mind, and won't be doing the work.

If I get bad vibes at quotation stage, I just don't quote.

 

[WoodYouLike]

Is it normal to ask for a 50% deposit before starting work on a new boiler installation (for around 2K). Its a one man band and I don't think he accepts credit cards so can't protect myself that way either.

But if its the norm then I guess I can accept it....

What is it with trade work? If you buy a fridge or tv and have that delivered/installed you pay upfront - the whole 100%. If you book a holiday, you pay 100% before you even pack your bags. If you go to B&Q and buy a boiler you pay 100% upfront, not?

What's different with trade work?
The trader has to buy the materials you ordered (or are needed for your job to be carried out correctly, quick and without delays) and book time in to carry out your job = commitment both ways - so, yes deposit upfront, remainder of the materials on delivery and labour after completion of the job.

Fair is fair.

 

[Chukka63]

i normally ask for 10% in advance ,as soon as the materials turn up on site i expect another payment ,depending on my outlay.

 

[Petest67]

What is it with trade work? If you buy a fridge or tv and have that delivered/installed you pay upfront - the whole 100%. If you book a holiday, you pay 100% before you even pack your bags. If you go to B&Q and buy a boiler you pay 100% upfront, not?

What's different with trade work?
The trader has to buy the materials you ordered (or are needed for your job to be carried out correctly, quick and without delays) and book time in to carry out your job = commitment both ways - so, yes deposit upfront, remainder of the materials on delivery and labour after completion of the job.

Fair is fair.

I agree completely. I normally ask for 50% deposit as I have to pay for the materials and don't expect to fully finance customers purchases - I'm not an unlicenced loan company.

 

[Donkmeister]

As a customer, I reckon that a reasonable deposit is the cost of the equipment to be installed plus the sundry materials, with labour costs being the balance of payment on satisfactory completion of the job (or, for bigger jobs, pre-defined milestones are met).

If the customer doesn't trust the contractor with a deposit for materials, they should find a contractor who they do trust, or rethink what they want to have done.

If the contractor doesn't trust the customer to pay up for the labour at the end, they should decline the job.

It gets difficult in the situation where the customer thinks the workmanship isn't perfect and refuses to pay 100% of the labour bill without giving a chance to rectify it to his standards, but at least then the contractor has only lost time and isn't out of pocket for materials too.

I might be lucky as I've not encountered any cowboys or sheisters. I've only hired contractors 4 times: 3 of those times I was 100% happy with the work and paid in full immediately, the 4th time there was some minor rectification to be done, he agreed, so he did it then and there in 5 minutes and then I paid in full.

 

[JonoPashley]

As a customer, I reckon that a reasonable deposit is the cost of the equipment to be installed plus the sundry materials, with labour costs being the balance of payment on satisfactory completion of the job (or, for bigger jobs, pre-defined milestones are met).

If the customer doesn't trust the contractor with a deposit for materials, they should find a contractor who they do trust, or rethink what they want to have done.

If the contractor doesn't trust the customer to pay up for the labour at the end, they should decline the job.

It gets difficult in the situation where the customer thinks the workmanship isn't perfect and refuses to pay 100% of the labour bill without giving a chance to rectify it to his standards, but at least then the contractor has only lost time and isn't out of pocket for materials too.

I might be lucky as I've not encountered any cowboys or sheisters. I've only hired contractors 4 times: 3 of those times I was 100% happy with the work and paid in full immediately, the 4th time there was some minor rectification to be done, he agreed, so he did it then and there in 5 minutes and then I paid in full.

Had one of these myself, didnt bother to call me with the problem they had just got someone else in while i was ill, no refusing payment for some extra work beyond the quote which was carried out. Same person also likes to claim no contrators take deposits for materials etc.

 

[wallcoatingsbloke]

A deposit is an absolute must. There are many members of the public who make a living in the Uk out of ripping off contractors, thing is you only ever hear the "other side of the coin", about the cowboys who have ripped off clients as most business have zero protection against non paying customers, but the consumer has more rights than you can shake a stick at, and some know it too! They know their local trading standards number, they know their rights etc, and you can do the best, most pro job in the world, and they will try and find some way not to pay. BEWARE!

At least take a deposit that covers the outgoings of the job, materials etc, or in some cases, get the client to purchase a specific expensive item themselves.

One can be as professional as possible, and thankfully cases like this are rare but nevertheless, my advice would be to always take a deposit and "cover your back" against any eventuality. If you are a member of a trade body, FMB being an example, they can sometimes help arbitrate with a problem client, but in many cases the awkward client knows it is too expensive for you to take them to court.

beware!!!!!!!!!!

 

[bsr]

If you buy a fridge or tv and have that delivered/installed you pay upfront - the whole 100%. If you book a holiday, you pay 100% before you even pack your bags. If you go to B&Q and buy a boiler you pay 100% upfront, not?

Well, no. Every tradesman I've used has an account, so they get 30-45 days free credit. B&Q do trade accounts (I used to have one) and they give 30-45 days free credit too. You must have an unusual merchant if you have to pay upfront for all your materials (I accept it might be different for special order flooring).

As a professional services consultant, my company only ever invoices monthly in arrears, with 28-day payment terms, so payment is not due until up to two months after the work is done.

On the other hand, I appreciate that despite this, its reasonable for a tradesman to ask for materials money up front. Perhaps the OP's plumber would have better luck asking for "20% in advance towards materials" rather than a 50% holding deposit.

 

[Thermo]

i see both sides, but then a shop will normally operate on a credit basis, no different to a tradesmans account. I ask for a small deposit when the work is booked (if its over a few days work) then a payment on starting just to make sure the cheque book exists.
Have to agree with Chris r and his comments. you definetly do get a feeling on certain customers

 

[dreadnoughtheating]

For a boiler swap, as with tony and CorgiGrouch 50% on the first day when materials turn up, the next 50% upon completion, no guarantee registered or Gas Works notification until paid!

Has worked for me.

DH

 

[WoodYouLike]

If you buy a fridge or tv and have that delivered/installed you pay upfront - the whole 100%. If you book a holiday, you pay 100% before you even pack your bags. If you go to B&Q and buy a boiler you pay 100% upfront, not?

Well, no. Every tradesman I've used has an account, so they get 30-45 days free credit. B&Q do trade accounts (I used to have one) and they give 30-45 days free credit too.

True, but I was talking from the customers point, not the trader. If they go to B&Q they have to pay upfront, why not pay the trader upfront (deposit or percentage). What are we - bank of loan?

 

[dilly]

I think it is very important to take a deposit firstly your getting commitment from them(stops them cancelling last minute) plus it gives the trader cash flow.If they hum and har about paying a deposit what they gonna be like when you ask for final payment.I also always take a deposit of 25% again this does not cover all bases i also see the other side of what the customer thinks 50% being to high so i settled on 25% so far only 1 customer thought that was to high

 

[jase1971]

Dont think there is any right or wrong nswer when it comes to getting paid up front, I guess the public would argue that a professional should not need the money up front, but a trader would say, they need to cover themselves
Jason

 

[Goldspoon]

Well, no. Every tradesman I've used has an account, so they get 30-45 days free credit. B&Q do trade accounts (I used to have one) and they give 30-45 days free credit too. You must have an unusual merchant if you have to pay upfront for all your materials (I accept it might be different for special order flooring).

It's not about cashflow for many traders but about risk - in such a case your point is not valid.

I make sure a deposit covers my materials. I am prepared to risk my labour but a double whammy of somebody not paying me for £1,000 of materials and a week's worth of labour would be too painful.

You said you are in "services" - so not materials... so you only risk your labour/overheads as well.