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Earnest Payment For A Specific Start Date??

 
 
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Old 04-11-2013, 11:30 AM  
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Earnest Payment For A Specific Start Date??


I recently have had a couple cancelations, which I don't mind, but one in particular asked me a month ahead of time for a specific start date so I cleared my schedule for that day and the followiung 2 weeks it would have taken to do the job.

It gave me couple days off until I lined up the next one to start early, but I had planned to work those days, and I feel she should have been responsible. I am not persuing this with action, I am just saying I was on her time and it peaved me.

Obviously, no contract had been signed, so maybe I should've done that before clearing the schedule, but I understand that sometimes conditions change and a person can't afford the work, you can't bleed a turnip.

But she had literally asked for athat specific start date and didn't cancel til the last minute. So, my question is, do any of you ask for an earnest payment before scheduling a specific date for a job to start?
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Old 04-11-2013, 12:10 PM  
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Re: Earnest Payment For A Specific Start Date??


No contract and no deposit. She had no skin in the game.

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Old 04-11-2013, 12:18 PM  
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Re: Earnest Payment For A Specific Start Date??


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No contract and no deposit. She had no skin in the game.
Do you ask for a deposit before scheduling?
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Old 04-11-2013, 12:27 PM  
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Re: Earnest Payment For A Specific Start Date??


Chalk it up to lesson learned & move along.
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Old 04-11-2013, 12:34 PM  
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Re: Earnest Payment For A Specific Start Date??


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Chalk it up to lesson learned & move along.
I get it. What I am asking is if it is common practice to get a deposit before even putting the job on the schedule?
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Old 04-11-2013, 12:37 PM  
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Re: Earnest Payment For A Specific Start Date??


My last job was setup very similar to this. I presented my contract and got 10 percent down. Then cleared my schedule.
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Old 04-11-2013, 12:38 PM  
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Re: Earnest Payment For A Specific Start Date??


Other than service calls, no contract, don't get put on schedule.
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Old 04-11-2013, 12:47 PM  
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Re: Earnest Payment For A Specific Start Date??


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Originally Posted by TxElectrician View Post
Other than service calls, no contract, don't get put on schedule.
What if they back out the last minute. Would you waste your time in court trying to bleed a turnip?

Even if they had signed a contract I would not hold them to it if I had not spent any time or money on the job. But, It would be nice to get paid for a couple wasted days, my one employee most definetly agrees. Maybe just a clause in the contract?
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Old 04-11-2013, 01:09 PM  
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Re: Earnest Payment For A Specific Start Date??


My contract states that we get a scheduling deposit. It also explains to the customer the three day right to cancel. (If they cancel in that three days the deposit is refunded). Now after the three days if they cancel we have a clause that we at our discretion can charge a cancellation fee on top of keeping their deposit. I have never had to use our cancellation fee but I would if I had to. I have given deposits back up to 7 days cancelled, less my expenses (if any). Makes us look good and it is usually due to a check not coming in like planned and they end up rescheduling.
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Old 04-11-2013, 01:18 PM  
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Re: Earnest Payment For A Specific Start Date??


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Originally Posted by ryanshull View Post
I get it. What I am asking is if it is common practice to get a deposit before even putting the job on the schedule?
Personally, I've typically got enough people on a when I get time list, that this wouldn't derail my scheduling very bad. I'm always putting off maintenance on equipment, shop cleaning, ect, so when I get a cancellation, I usually look at it as a positive, rather than a negative.

We're a small company, so what works well for us, probably wouldn't work as well for a company with employees.
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Old 04-11-2013, 02:30 PM  
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Re: Earnest Payment For A Specific Start Date??


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Originally Posted by ryanshull View Post
Do you ask for a deposit before scheduling?
Yes, if it isn't service work, and not for someone we know we get a deposit with the contract, then they are placed on the schedule. However, being trade specific, I understand that many times the customer is delayed by other trades. I try to be a flexible as possible.
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Old 04-11-2013, 03:00 PM  
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Re: Earnest Payment For A Specific Start Date??


It wasn't a big setback for me or anything. I agree that a little shop and office time is ussually welcome. I am used to people working around my schedule, but this one got me to thinking about my approach.

I have always just taken the first payment on the day we start. I like to show up with materials when they write me check.

In my small town I rarely feel the need for a contract, but I will certainly require a small deposit if they want me to work on their terms or schedule.
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Old 04-11-2013, 03:30 PM  
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Re: Earnest Payment For A Specific Start Date??


Unless they're a good repeat client, they don't get a spot on my schedule without a deposit. I got burned one too many times just like you did.

Even if I'm 6 months out now, they pay a deposit. Usually only a few hundred dollars, but enough to where they have skin in the game.
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Old 04-13-2013, 08:55 PM  
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Re: Earnest Payment For A Specific Start Date??


I sign contract immediately after they accept. At that time, I accept the deposit and schedule the job. My longest wait was 7 months. 10/2011 direct referral customer called looking for solution to roof leak. I was slammed so I went over there, fixed the leak on a 25 yr roof. She asked to have it replaced. I told her we were out till May, which she said sounds good now that the leak is fixed. I came back later that week with a contract and a smaller than usual deposit due to the long wait. She happily wrote a check and was willing to wait. As it turned out, we had some scheduling openings and completed the job in early April/2012.

Customers want to trust the contractor. When they find one they can relate to and trust, they'll pay for their spot, simple as that. If not, move on.
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Old 04-13-2013, 11:32 PM  
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Re: Earnest Payment For A Specific Start Date??


Quote:
Originally Posted by ryanshull View Post
I recently have had a couple cancelations, which I don't mind, but one in particular asked me a month ahead of time for a specific start date so I cleared my schedule for that day and the followiung 2 weeks it would have taken to do the job.

It gave me couple days off until I lined up the next one to start early, but I had planned to work those days, and I feel she should have been responsible. I am not persuing this with action, I am just saying I was on her time and it peaved me.

Obviously, no contract had been signed, so maybe I should've done that before clearing the schedule, but I understand that sometimes conditions change and a person can't afford the work, you can't bleed a turnip.

But she had literally asked for athat specific start date and didn't cancel til the last minute. So, my question is, do any of you ask for an earnest payment before scheduling a specific date for a job to start?


Check into the laws of your state. In our state a contract is not valid unless financing is signed and approved or money has exchanged hands. We go out 8-10 weeks when busy and we still have a 30% deposit. Some of our competitors take a 40% deposit. My point is if they want to get on your schedule hold up your policy. In our state there is a 3 day right of recission. After the three days we charge 25% cancelation fee plus any time and materials used up until that point. My other question is when do you make them sign the contract? Need to do this at the time they commit. Good luck. Live and learn.....
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Old 04-15-2013, 02:25 PM  
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Re: Earnest Payment For A Specific Start Date??


Deposit has to clear and signed papers before anything gets ordered or scheduled. HAS To be that way
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Old 04-16-2013, 05:11 AM  
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Re: Earnest Payment For A Specific Start Date??


Quote:
Originally Posted by BradingCon View Post
My last job was setup very similar to this. I presented my contract and got 10 percent down. Then cleared my schedule.
If someone doesn't put a deposit down, I treat their project no different than someone getting an estimate.
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Old 04-16-2013, 07:47 AM  
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Re: Earnest Payment For A Specific Start Date??


Quote:
Originally Posted by cabinetsnj

If someone doesn't put a deposit down, I treat their project no different than someone getting an estimate.
Exactly. No deposit no scheduling will be done.
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Old 04-16-2013, 08:04 AM  
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Re: Earnest Payment For A Specific Start Date??


Without a deposit, they are not a customer yet, so why would you put them on the schedule? Materials are ordered, designs are finalized, meetings held all before the job starts on-site...
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Old 04-17-2013, 06:41 AM  
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Re: Earnest Payment For A Specific Start Date??


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Without a deposit, they are not a customer yet, so why would you put them on the schedule? Materials are ordered, designs are finalized, meetings held all before the job starts on-site...
Exactly. Show me the money and I will show you my time.

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