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Paid In Full At Start??

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Unread 08-15-2019, 10:01 PM   #21
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Re: Paid In Full At Start??


I am a small painting operation, if i take on a large painting project for a new customer then i request the first payment on the first day of starting work, then a second payment at mid point and a smaller final payment on the day of completion. Usually broke down about 40% 40% and 20%. I have to be responsible for my employees. Motivation to complete the work i have not found to be a problem.

I am not in a position to finance someone else's project.

Smaller jobs of just a few weeks i collect on completion.
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Unread 08-15-2019, 10:17 PM   #22
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Re: Paid In Full At Start??


My work is usually in the 5000 to 50000 range. I typically take a 50 percent deposit upon material delivery, and balance upon completion. I refuse to finance other people's projects

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Unread 08-16-2019, 08:34 AM   #23
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Re: Paid In Full At Start??


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My work is usually in the 5000 to 50000 range. I typically take a 50 percent deposit upon material delivery, and balance upon completion. I refuse to finance other people's projects

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That’s what I usually do for projects under a month. Over a month I will break payments down a bit
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Unread 08-16-2019, 08:54 PM   #24
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Re: Paid In Full At Start??


I have never front loaded a job. I also have never been burned in 16 years.


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Unread 08-16-2019, 10:15 PM   #25
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Re: Paid In Full At Start??


I have told customers I wont accept full payment because if I do I will never finish. They laugh and tell me they trust me. I don't laugh and tell them that part of being honest is knowing that I want the incentive at the end to drag it across the finish line. I am fine with 90% but not full.
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Unread 08-17-2019, 01:14 PM   #26
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Re: Paid In Full At Start??


We always take a deposit to cover materials and the first couple of days of work.

Then draws are based on progress. Most of our projects are also in the 5-50k range. One to three draws is enough. I don't ever let anyone get too far ahead of us.

100% up front? Hell no. I'll pay a couple of bills, buy a thousand dollar tool I don't need, a bottle of Whistle Pig 15 year rye on the way home, then wonder how I'm gonna make payroll for the next week. Lol...best to know my own limits.
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Unread 08-17-2019, 02:37 PM   #27
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Re: Paid In Full At Start??


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Originally Posted by onmywayup View Post
We always take a deposit to cover materials and the first couple of days of work.

Then draws are based on progress. Most of our projects are also in the 5-50k range. One to three draws is enough. I don't ever let anyone get too far ahead of us.

100% up front? Hell no. I'll pay a couple of bills, buy a thousand dollar tool I don't need, a bottle of Whistle Pig 15 year rye on the way home, then wonder how I'm gonna make payroll for the next week. Lol...best to know my own limits.
We must be related.

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Unread 08-17-2019, 07:11 PM   #28
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Re: Paid In Full At Start??


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We must be related.

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Unread 08-18-2019, 08:10 PM   #29
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Re: Paid In Full At Start??


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How long does an average bathroom job last? Seams like every 3days you would be getting a cheque
Average master bathroom takes 6-8 weeks. So it's a about a check every week.
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Quote:
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You ask for your money frequently, and you collect it quickly, else you stop working immediately.
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Unread 08-18-2019, 08:12 PM   #30
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Re: Paid In Full At Start??


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I have never front loaded a job. I also have never been burned in 16 years.


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Although I agree, I don't think that taking a deposit to pay for special order materials is front loading. I am not going to ever be in the position to be holding the bill for someone's cabinets.
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Quote:
Originally Posted by CarpenterSFO View Post
You ask for your money frequently, and you collect it quickly, else you stop working immediately.
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Unread 08-18-2019, 09:30 PM   #31
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Re: Paid In Full At Start??


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Although I agree, I don't think that taking a deposit to pay for special order materials is front loading. I am not going to ever be in the position to be holding the bill for someone's cabinets.

I agree. In this state you have to have a bond in order to take a deposit for materials.



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Unread 08-18-2019, 09:32 PM   #32
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Re: Paid In Full At Start??


Your purchase a bond for about 100 bucks every two years and file it with the state. There's a lot of people that run off with deposit money.


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Unread 08-24-2019, 10:13 PM   #33
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Re: Paid In Full At Start??


Be careful. Nothing worse than going to work each day for money you have already spent.
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Unread 08-24-2019, 10:37 PM   #34
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Re: Paid In Full At Start??


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Be careful. Nothing worse than going to work each day for money you have already spent.


That would be a bigger problem.


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Unread 08-25-2019, 09:35 AM   #35
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Re: Paid In Full At Start??


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That would be a bigger problem.


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All too common in our industry unfortunately...
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Unread 08-25-2019, 01:17 PM   #36
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Re: Paid In Full At Start??


Yeah, but even if I haven't spent it, it is harder to motivate myself if I technically already have it.

I do take a down payment, but have lowered it over the years and try and leave more at the end.

I do always take one to cover special order materials. Even small stuff. Even a 100 bucks or so.

Those tend to be a big deal when you are talking to a customer, but then when you order it and they are now not worried about it, you end up with an item that can't be used anywhere else.

An example would be a renter who breaks a window, wants it fixed. I order the IGU, it gets delivered and they have moved or just decided to let the rental company have thier deposit.

Or a customer who thinks they need a window fixed to sell, finds out they don't and now decide they don't really need to worry about it.

Or a customer who wants a fence fixed, so I go ahead and grab a 100 dollar box of stainless nails, then they don't.

I do make exceptions, but with trepidation unless it is a good customer, or good referral.

Larger jobs I don't worry so much, as there is a built in cushion, and I usually have a good relationship.

Small jobs, there isnt any cushion, and sometimes they just disappear completely.

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Unread 08-25-2019, 04:25 PM   #37
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Re: Paid In Full At Start??


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Yeah, but even if I haven't spent it, it is harder to motivate myself if I technically already have it.

I do take a down payment, but have lowered it over the years and try and leave more at the end.

I do always take one to cover special order materials. Even small stuff. Even a 100 bucks or so.

Those tend to be a big deal when you are talking to a customer, but then when you order it and they are now not worried about it, you end up with an item that can't be used anywhere else.

An example would be a renter who breaks a window, wants it fixed. I order the IGU, it gets delivered and they have moved or just decided to let the rental company have thier deposit.

Or a customer who thinks they need a window fixed to sell, finds out they don't and now decide they don't really need to worry about it.

Or a customer who wants a fence fixed, so I go ahead and grab a 100 dollar box of stainless nails, then they don't.

I do make exceptions, but with trepidation unless it is a good customer, or good referral.

Larger jobs I don't worry so much, as there is a built in cushion, and I usually have a good relationship.

Small jobs, there isnt any cushion, and sometimes they just disappear completely.

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Add some cushion to the small jobs?....


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Unread 08-25-2019, 05:17 PM   #38
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Re: Paid In Full At Start??


I do, but on a 350-500 dollar repair with a 100 dollar item, there is only so much you can do.

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Unread 08-25-2019, 06:52 PM   #39
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Re: Paid In Full At Start??


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I do, but on a 350-500 dollar repair with a 100 dollar item, there is only so much you can do.

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A $50 increase in a $500 sale is unlikely enough an increase for them to walk, but a 10% gross profit addition to the deal...

Just something to consider...

Last edited by KAP; 08-25-2019 at 07:49 PM.
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Unread 08-25-2019, 07:45 PM   #40
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Re: Paid In Full At Start??


About 14 years ago I presented a kitchen proposal for $440k. We had previously done about $2mil of work for the family (him, his mom and dad, his brother). At contract signing, he gave me $400k and said, “we’ll settle the final payment at completion”. This was my first experience with this payment plan.

Signed a design agreement a couple of weeks ago (with my current most active customer) for a pool house. I estimated the design cost to be $50k (Time and Expense) and wrote the proposal that they would be billed “approximately every two weeks with progress on the design”.

She wrote a check for $50k and said writing a check every two weeks was a pain in the ass.

I also have several of our maintenance customers that pay for the year rather than quarterly.

I don’t have a problem with going to work every day and earning that money.

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