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Customer has a deposit on a logo but want's to go another route

J

john1

Guest
Hey everyone, I have a customer who made a 50% deposit to have a logo designed for their vehicle advertising (pick ups), business cards and t-shirts. I just got a call that they want to go another route and won't be needing the logo.

I take this happens all the time but wondered what you think i should do. Keep the 50% or bill them for the entire job as usual? The package they were ordering included rights to the files so they could have a disc to send to their screen printer etc in the future.

Thanks!
 
J

john1

Guest
Yes, I did 3 concepts for them and they said we like X and change this and we're good to go. So i did and now i get this call.
 
S

SD&F

New Member
I charge for any design work if the job comes through or not. You should be paid for your work.
 
Gino

Gino

Premium Subscriber
This is a very good example of why we have in our quoting process a line item called Artwork Retainer.

This simple statement says it all and you don't suffer any consequences for moody people, people finding someone to do it cheaper later or people just too dishonest to deal with any longer.


ARTWORK RETAINER: A cost agreed by both customer [of this quote] and ABC Signs for artwork to be developed by ABC Signs. Upon agreement on artwork, this cost will be credited towards your deposit of this sign order. However, this Artwork Retainer is non-refundable.

It's a given window of time of 6 hours and we recently changed it from $600.00 up to $895.00.

Do we get a lot of these ?? Maybe 10 or 12 a year and they always turn out swell, but we really do avoid all the tire kickers this way and we haven't had anyone ask for money back since we put this into effect about 17 years ago. When we first started doing this around 1995 or so, we were charging $75 and we had no one taking us seriously, so we put it up to $295.00 and people started using us for this like crazy. We kept putting it up and it didn't seem to discourage anyone. Now, we're at basically $900 and still getting enough of it to suit me. We're not even offering a whole marketing plan as Dan A and Joe D do, just usually a logo of sorts that can be used in several mediums. They all realize that when the first 6 hours is used up, we will collect another $895. and continue on, but that rarely happens. We will not show the logo on trucks or signs until the final piece is created and signed off on.
 
ddarlak

ddarlak

Go Bills!
keep the 50% and bill them for what they owe you....

you can't return a cheeseburger half eaten..... that is - unless it sucks....

post the design....
 
S

SD&F

New Member
I love it and that is my Mantra. There have been several cases of hurry up I needed it yesterday to, oh well they changed their mind and direction. That is why I collect my 50% up front.
 
J

john1

Guest
Honestly, I don't have any contracts. I guess since i have been such a small business i just haven't ever looked into getting those made up.

The customer came and gotten about 4 trucks lettered last year and this year they wanted to re-brand their company since it hasn't had a logo at all in over 30 years just basic type.

What do you think i should say in cases like this without sounding like a p***k? The logo has the same value whether it's being used now or not since the work is already done.
 
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Circleville Signs

Circleville Signs

New Member
If you have already done the work, and you don't have a contract, then I'd say you should explain that you will be keeping the deposit. You'll never see the other 50%.

Then, go put together a contract. You can do it yourself - aiga.org has the framework all laid out.
 
Gino

Gino

Premium Subscriber
john1 said:
Honestly, I don't have any contracts. I guess since i have been such a small business i just haven't ever looked into getting those made up.
The customer came and gotten about 4 trucks lettered last year and this year they wanted to re-brand their company since it hasn't had a logo at all in over 30 years just basic type.
What do you think i should say in cases like this without sounding like a p***k? The logo has the same value whether it's being used now or not since the work is already done.
Click to expand...


You answered your own question, in your own question.

They had to know or realize it was going to cost.... something. You calmly say, yes, I can do this for you. I have several packages from which to choose. I would think we could do this with our 2nd or 3rd level package deal which gives you between 4 and 6 hours of time.


  • Level I gives you two basic hours for a very simple layout at $275.00 This includes you getting the rights to the final product.
  • Level II gives you 4 hours for a more middle of the road creation for $475.00 with the rights afterwards.
  • Level III gives you 6 hours for a better middle of the road creation for $675.00 with the rights afterwards.
  • Or my final Level IV which gives you 8 hours for a top notch creation for $800.00 with the rights afterwards and also your best bang for the buck.
You let them decide while you tell them briefly most of your creations have happened within 3 to 5 hours and if there is any money left over, you'll apply it to their fabrication part of the job.

Walk away and don't sound or look desperate. :noway:
 
Last edited by a moderator:
TyrantDesigner

TyrantDesigner

Art! Hot and fresh.
john1 said:
Honestly, I don't have any contracts. I guess since i have been such a small business i just haven't ever looked into getting those made up.

The customer came and gotten about 4 trucks lettered last year and this year they wanted to re-brand their company since it hasn't had a logo at all in over 30 years just basic type.

What do you think i should say in cases like this without sounding like a p***k? The logo has the same value whether it's being used now or not since the work is already done.
Click to expand...

Always have contracts for design work ... a one page contract can have at least the basics to what the customers should expect, what you should expect and when you get paid and what their rights to the work are. always have a contract.
 
J

john1

Guest
So even without having a lawyer and all it's still going to help get me paid if this comes up?

I always thought it didn't mean jack if a lawyer wasn't overlooking it.
 
WildWestDesigns

WildWestDesigns

Active Member
john1 said:
So even without having a lawyer and all it's still going to help get me paid if this comes up?

I always thought it didn't mean jack if a lawyer wasn't overlooking it.
Click to expand...

A lawyer helps to make sure that your contracts are kosher. Some people that do their own contracts get a little zealous with their stipulations etc that aren't allowed. That's where having a lawyer comes in handy.
 
MikePro

MikePro

New Member
"i would love to rework this logo for you, but I will have to charge an additional xx.hours of design time for the extra effort involved beyond the scope of our initial terms."
 
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