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Deposit for job or full payment



 
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Old February 11th, 2008 Feb 11, 2008 4:59:11 AM -   #1 (permalink)
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Default Deposit for job or full payment

Hey Folks,
I have a customer that needs 500 tote bags printed. This is a new customer and I asked for 1/2 payment to start job and 1/2 on delivery. This is about a week to 10 day job. Customer seemed upset that he could not pay in full when it is completed. The customer has approved the artwork. I thought that this was a fair practice.

How do you folks do it?????

Your Thoughts.

Thanks
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Old February 11th, 2008 Feb 11, 2008 5:04:00 AM -   #2 (permalink)
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Default Re: Deposit for job or full payment

Unless you've done a credit check on your customer, I would definitely take half down to begin this job!

There's just too much risk that they could back out at the last minute, in my opinion. Having them give a deposit just makes it more likely that they'll finish the deal.

Also, make sure they sign an agreement!
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Old February 11th, 2008 Feb 11, 2008 6:08:29 AM -   #3 (permalink)
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Default Re: Deposit for job or full payment

We charge a deposit for anything over $300, normally 50% but sometimes a little less. We just want skin in the game from the customer so they don't bail. If he were to buy those bags online then he would be charged up front for them so the 50/50 is a good deal.
 
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Old February 11th, 2008 Feb 11, 2008 6:12:23 AM -   #4 (permalink)
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Default Re: Deposit for job or full payment

you should charge a new customer 50% or at least enough to cover the cost of bags, shipping, tax, etc. If they bail, and who's to say they couldn't, you don't want to be stuck with that! No way!

Its unfortunate that people will do that, and its unfortunate that we kind of have to assume the worst. But, you don't want to be in the position of giving someone the benefit of the doubt and they stiff you.
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Old February 11th, 2008 Feb 11, 2008 6:24:06 AM -   #5 (permalink)
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Default Re: Deposit for job or full payment

This is about a $2,500 order, I thought it was more than fair.
I have done most orders with 1/2 down and 1/2 when finished.

Thanks for the feed back.

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Old February 11th, 2008 Feb 11, 2008 7:07:49 AM -   #6 (permalink)
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Default Re: Deposit for job or full payment

it's simply professional, I would see this as a red flag and definatly require they do business with me, not the other way around. Customers often think they are running our business....nope, they are choosing to work with us, the professionals, so they need to act professionally with us!
 
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Old February 11th, 2008 Feb 11, 2008 7:11:37 AM -   #7 (permalink)
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Default Re: Deposit for job or full payment

Quote:
Originally Posted by threedog
Hey Folks,
I have a customer that needs 500 tote bags printed. This is a new customer and I asked for 1/2 payment to start job and 1/2 on delivery. This is about a week to 10 day job. Customer seemed upset that he could not pay in full when it is completed. The customer has approved the artwork. I thought that this was a fair practice.

How do you folks do it?????

Your Thoughts.

Thanks
Todd
What type of customer?
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Old February 11th, 2008 Feb 11, 2008 7:21:10 AM -   #8 (permalink)
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Default Re: Deposit for job or full payment

It is a Marketing customer, doing the bags for a give away.
 
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Old February 11th, 2008 Feb 11, 2008 7:24:03 AM -   #9 (permalink)
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Default Re: Deposit for job or full payment

Quote:
Originally Posted by threedog
It is a Marketing customer, doing the bags for a give away.
It's a gut feeling sometimes...

I would print the bags and send him the invoice so he knows the total to pay when he comes and picks them up.
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Old February 11th, 2008 Feb 11, 2008 7:46:52 AM -   #10 (permalink)
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Default Re: Deposit for job or full payment

i guess the next question is did they know of the deposit up front or did you tell them after the quote was done and they said ok?

if i am told up front about a deposit then i am ok, otherwise i would be pissed too.
 
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Old February 11th, 2008 Feb 11, 2008 7:59:34 AM -   #11 (permalink)
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Default Re: Deposit for job or full payment

We required 50% down on all orders(except well established customers).. We also have a sign in our shop stating this.. there are a few jobs we require a bit more.. we have a 9,000 job coming up that the customer has been told that 5000 deposit will be required.. .. We have few jobs that never get picked up.. we even have some jobs that have been paid in full that are never picked up.. some customers are flakes.. and You really cant tell up front which ones are the gonna flake on you.. lol
we had a check bounce from a customer that is a millionare once lol..
when he came and paid it off in full He whipped out several thousand in cash from his pocket to pay.. and said.. he had forgotten to put enuff money in the account he had written the check from..
 
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Old February 11th, 2008 Feb 11, 2008 8:08:31 AM -   #12 (permalink)
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Default Re: Deposit for job or full payment

I think it kind of depends on the customer, If it is a bank or large department store etc. someone who has been in the community a long time, you would probably be safe without a deposit. But a new business or someone without established credit might be a different story, It also depends on how much you personally can afford to lose. I personally would not want to take that big of a hit.
 
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Old February 11th, 2008 Feb 11, 2008 8:12:25 AM -   #13 (permalink)
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Default Re: Deposit for job or full payment

Who's bags are they? If you are buying then half down is what I'd do.

Also why is it such a long job? How many colors you doing? 5-10 days is way to long for 500 pieces even on a manual. If we could them in a day and that's taking a heat gun to them to dry instead of the dryer, depends on the bag.
 
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Old February 11th, 2008 Feb 11, 2008 8:21:24 AM -   #14 (permalink)
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Default Re: Deposit for job or full payment

It is a new customer, and out of town customer (200 miles). He was referred by a current customer. I'm buying bags (odd color) and screen printing and embroidery, also having to work this job in between other orders to keep everything on time.
Hope that makes sense,,,,,

My gut feeling tells me to get 1/2 down.......
 
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Old February 11th, 2008 Feb 11, 2008 8:23:44 AM -   #15 (permalink)
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Default Re: Deposit for job or full payment

After thinking (which I don't do much of) every time order something large or small it is payment up front. Then I have 30 days to pay on the credit card, and my credit is great......
 
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