Retainers - Deposits

Painter.Josh

How do you guys work your deposits, if you take them?

When I first started I didn't take deposits, and took it a couple of times up the back side. Then I started taking a 50% deposit on labor and the cost of paint up front. Now I have an account with Shermin Williams and I just take the 50% labor.
I talked to another painter that has been in business for 25+ years. He told me he takes 60% of the labor and charges the paint. Another I talked to doesn't take deposits.
I talked to my buddy, who is a independant plumber. Who normally takes close to 70% total deposit on jobs for more than 1000.00. He told me I was out of my mind for taking deposits cause a monkey could paint. His job actaully took education. Then of course I extended my middle finger to him in graditude.
What do you guys do?

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But He was pierced for our transgressions, He was crushed for our iniquities; the punishment that brought us peace was upon Him, and by His wounds we are healed. :Thumbs:

ProWallGuy

1/3 down, when contract is signed and start date set, 1/3 after 7 working days at the site, and 1/3 at completion, no later than 72 hours after works completed or they get charged a late fee.

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Wallpaper Hanger St. Louis
Digital Murals Installation

Floorwizard

I am not in paint, but for flooring I take 50% of material to order it, then the other 50% before install date. Labor is paid after job is done to industry standards.

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"in 20 years you will regret more what you did not do than what you did"

Grumpy

Always get a deposite with residential, and if we are dealing with a new GC.

In the residential world it's acceptable to ask for deposites. Most GC's scoff at deposites and I have literally hung up the phone on a few of these guys.

Retention sucks and I have declined to bid on a few jobs because of the retention. I've done a few jobs where they held their retention however all of those cases were acceptable. A few months? Ok. Years? F you.

sumpen

I do mostly residential repaints. I require 50% at start and 50% when finished for jobs under $2000.00. For anything over that I require 1/3 at start, 1/3 at a halfway point, and the final 1/3 at finish.

I find it much less stressful to all concerned not to finance somebody’s paint job. I believe what makes this fair and makes it work is that if anything happens and you should leave the job, or you should get removed from the job, neither party is out the entire cost of the job.

Brian

We get a third on signing, a third when half done, and the balance on completion. For small jobs-- 1 or 2 days-- we don't collect the middle payment.

This does several things. It helps cash flow. It alerts us to potential payment issues. We stay ahead of the customer for the most part. If rain or something else delays a job, we aren't stuck with a job that's 90% complete but no payment.

In my opinion, it's just good business sense to keep the cash flowing and make sure the customer can/ will pay.

Brian Phillips

Painter.Josh

Thx guys...just wondered what it was like in your areas.

__________________
But He was pierced for our transgressions, He was crushed for our iniquities; the punishment that brought us peace was upon Him, and by His wounds we are healed. :Thumbs: