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More Client Cluelessness When It Comes To Paying Deposits

 
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Old 10-15-2012, 09:40 PM   #1
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More Client Cluelessness When It Comes To Paying Deposits


Another forum I am part of has this discussion about if the contractors payment schedule was alright or not.

http://forums.redflagdeals.com/contr...edule-1242827/

Of course some idiot chimes in about never paying deposits for anything..
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Old 10-15-2012, 10:03 PM   #2
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Re: More Client Cluelessness When It Comes To Paying Deposits


That JAC is a real piece of work.

Quote:
with some sort of cash back process from the supplier.
What the hell is this about and where do I sign up? Maybe get a discount, but I never got any cash back that wasn't because I gave them to much to begin with...that's called getting your change back.

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Old 10-15-2012, 10:09 PM   #3
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Re: More Client Cluelessness When It Comes To Paying Deposits


he is a deal guru with 14k+ posts... i think he knows what he's talking about.....
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Old 10-15-2012, 10:19 PM   #4
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Re: More Client Cluelessness When It Comes To Paying Deposits


I always find it funny that people will pay the big box stores 100% up front for a special order, no questions asked, and will inevitably encounter some sort of issue with the product when it's delivered.

Oh, but give a contractor a 50% deposit? No way!
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Old 10-15-2012, 10:28 PM   #5
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Re: More Client Cluelessness When It Comes To Paying Deposits


Wow JAC is something else. Unless it is a builder normally do work for 50% down is what I get , balance on completion of job. No way would I special order windows , which most of the time are custom built,which also can take weeks to get, without a deposit. Don't think have ever had some one not agree to a deposit. No pay no work.
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Old 10-15-2012, 10:39 PM   #6
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Re: More Client Cluelessness When It Comes To Paying Deposits


I get 50% on kitchens and a lot of other work that will take more than a week. If you are a trusted client than that is usually waved on jobs under 2K. But the new client needs to pay their dues. If you don't trust me why would I trust you?
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Old 10-15-2012, 11:34 PM   #7
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Re: More Client Cluelessness When It Comes To Paying Deposits


50-60% is norm around my area, what I run into is people attempting to end run me by taking my quote and attempting to match materials at the local box/store. I intentionally sample my store with items that are not available at box store for this very reason. Any attempt to end run me revises my quote to account for lost profit from not selling my own retail materials. I often lose the job at that point, but working for my hourly wage and cutting my store profits and overhead by not selling off-rack account for some of the losses I incurred opening my store in the first place. If they want your work, they will come, if not, they are price Nazis who would choose the lowest bidding hack in the first place, or who want your skill at a bargain to begin with. You can always lower your price, and be lower from then on. Sell your skills at the price you need, and mark up from there, not down.
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Old 10-15-2012, 11:50 PM   #8
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Re: More Client Cluelessness When It Comes To Paying Deposits


God that guy is a Dbag. Consumers suck.
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Old 10-15-2012, 11:50 PM   #9
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Re: More Client Cluelessness When It Comes To Paying Deposits


that site sould be called redflagcustomers.com
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Old 10-16-2012, 05:48 AM   #10
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Re: More Client Cluelessness When It Comes To Paying Deposits


Quote:
Originally Posted by Splinter View Post
I always find it funny that people will pay the big box stores 100% up front for a special order, no questions asked, and will inevitably encounter some sort of issue with the product when it's delivered.

Oh, but give a contractor a 50% deposit? No way!
That they do and the only reason for that, is the horror stories they hear about contractors walking away with deposits or never deliver what promised, etc... so they figure someone can make a left with theirs deposit, but a store ain't going anywhere. It gives the consumer a peace of mind.
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Old 10-16-2012, 06:02 AM   #11
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Re: More Client Cluelessness When It Comes To Paying Deposits


Quote:
Originally Posted by Randy Bush View Post
Wow JAC is something else. Unless it is a builder normally do work for 50% down is what I get , balance on completion of job. No way would I special order windows , which most of the time are custom built,which also can take weeks to get, without a deposit. Don't think have ever had some one not agree to a deposit. No pay no work.
Builders don't get 50% down, nobody in the right mind would give anybody 50% done for any job before the start day and in some States its illegal...You are lucky if you get that... what is your secret?
Unless like Leo said if you order kitchen or other special order material, you can take 50% or 100% for that material up-front, not the 50% of the whole job cost.
When I build a new house for a customer or sell a spec home being under construction... I get 20% down which is broken up in payments... 10% released to the builder at signing a contract and 10%when 10% when the roof is up... the rest is at the closing and that is pretty much been a standard practice since I started in this business... the last 3 houses I sold was at 10% down- 5% and 5% since the market went down the hill.
I never heard anyone putting 50% down, unless that 50% is in escrow and not released to a builder.
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Old 10-16-2012, 06:34 AM   #12
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Re: More Client Cluelessness When It Comes To Paying Deposits


I have changed how i take i deposits for jobs, i do it more and more now. Large electric job jobs i normally do 33% up front, 33% at rough inspection and 34% at final inspection. All large items such as stand by generators are paid in full up front before ordering. Other jobs i take 50% up front and the 50% at jobs end. This keeps money in the bank for materials, labor and my normal expenses and if i were to get screwed at least it would not be on materials. I have had customers complain and the 1st thing i ask is if they just met me and we were not doing business would they loan me that amount of 50%. Everyone of them says No. So i then ask why i should be asked to loan them that money to start a job for them out of my pocket???? I explain once the materials are on their property according to law the materials belong to he HO, so if it is going to be theirs then they can pay for it up front. Hell, i even take 50% deposits for small $1k jobs now. Keeping up with the bills has been much easier this way and i have not been screwed yet.
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Old 10-16-2012, 07:17 AM   #13
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Re: More Client Cluelessness When It Comes To Paying Deposits


Quote:
Originally Posted by greg24k View Post
Builders don't get 50% down, nobody in the right mind would give anybody 50% done for any job before the start day and in some States its illegal...You are lucky if you get that... what is your secret?
Unless like Leo said if you order kitchen or other special order material, you can take 50% or 100% for that material up-front, not the 50% of the whole job cost.

I take 50% of the whole job up front. It gives me my materials and a few weeks of pay. Usually the 2nd payment is 3 weeks away according to my schedule. The next is when I deliver the kitchen and the final is 5% after the kitchen has been installed.

I've only had one guy try to change it and I told him no. This is my payment schedule, and has been since a while now. He asked for references and I gave them to him. I got my 50% down and he is still asking me to do more work for him currently.
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Old 10-16-2012, 09:13 PM   #14
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Re: More Client Cluelessness When It Comes To Paying Deposits


50% down around my area. Thats just to get them on the books. Then another 45% or any amountunder $1500, to start the job. Special orders are paid in full before its ordered along with the overhead. If I control the cash, I sleep better. Only new guys will work without a depoist. They are also the ones that go
out of business.
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Old 10-16-2012, 09:31 PM   #15
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Re: More Client Cluelessness When It Comes To Paying Deposits


Quote:
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I take 50% of the whole job up front. It gives me my materials and a few weeks of pay. Usually the 2nd payment is 3 weeks away according to my schedule. The next is when I deliver the kitchen and the final is 5% after the kitchen has been installed.

I've only had one guy try to change it and I told him no. This is my payment schedule, and has been since a while now. He asked for references and I gave them to him. I got my 50% down and he is still asking me to do more work for him currently.
I don't know what jobs we're talking about Leo... The homes I am building right now range from 400-600k, I doubt people have 200k or 300k to bring to a table without a mortgage.

When I do kitchen jobs, I get 100% of the kitchen cost upfront without any problems then payment at starting of work and final when is complete... but this all 2 day jobs unless it is a major renovation, then more payments involved. In addition, there is a cap on the contract down payment in NJ, but not for the material.
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Old 10-16-2012, 09:47 PM   #16
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Re: More Client Cluelessness When It Comes To Paying Deposits


When I build a custom kitchen
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Old 10-16-2012, 09:50 PM   #17
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Re: More Client Cluelessness When It Comes To Paying Deposits


Quote:
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When I build a custom kitchen
Yeah, but Greg said a kitchen should only take 2 days.....
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Old 10-16-2012, 09:50 PM   #18
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Re: More Client Cluelessness When It Comes To Paying Deposits


Quote:
Originally Posted by WarnerConstInc.

Yeah, but Greg said a kitchen should only take 2 days.....
Now thats a deal
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Old 10-16-2012, 09:54 PM   #19
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Re: More Client Cluelessness When It Comes To Paying Deposits


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Yeah, but Greg said a kitchen should only take 2 days.....
It does. Right after they drop off the premade boxes 4-5 weeks after you order them.
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Old 10-16-2012, 11:42 PM   #20
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Re: More Client Cluelessness When It Comes To Paying Deposits


50 % on small jobs (really all i do//side work). and that's just to cover materials .
but i dont care if i get 175% up front... not doing this again until it's for MY kitchen! all custom made cabinets w/raised panel oak. (didnt router outside yet in pic, but you get the idea)
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