How do you handle this?

[Dennis422]

I asked about this project here before. Questions about pricing and such.

Last week I had a guy that I know before come into my home based business to ask for a quote.
Quoted him a "friendly" price and everything was agreed and far as the price, layout and materials to be used.

Finally, I make up an invoice and send him for a down payment. He went all crazy how I can ask him for a down payment and that he does not want to pay anything upfront before he sees how the first trailer looks. And after that, he wanted me to make each week one set and that is how he would pay me. He also stated that he wants 6 and not 8 trailers as agreed. Got all pissed off because I do not trust him and his money. Also, got all pissed off when I told him that I will make all of the sets at once and that he is responsible to keep them at his place until he has trailers available for install.

After I told him that there will be no work without 50% down and that the pricing will change if he is changing the terms, he said that he does not want it then.

What are your terms? 50% upfront and then 50% upon finish? Or you ask for upfront payment of 100%?
I know that I'm not backing down on 50% down payment, but I was wondering is that enough on 9-10K projects. There is still quite a bit of money to be lost if the remainder is not paid.

Thanks

 

[StopSignGraphics]

Stick to your 50% policy. If he's going nuts because you want a deposit, I'd say there is a fair chance you would have trouble collecting.

I have my pricing set up so that 50% covers material, lam, ink plus some if not all my labor. If someone decides not to pay, I have at least not taken any money out of my pocket. That's true for the large jobs as well.

~Chris

 

[GaSouthpaw]

50/50 has been the standard everywhere I've ever worked- in industrial supply as well as signs. I've had some bosses who were terrible at sticking to it, but I'd say don't waver. When you do custom work, you have to have some hedge against people changing their minds midstream (i.e., after you've put the job in motion).

 

[Marlene]

tell the idiot that as a small business the deposit is to buy the materials needed to do the job. it is common practice and if he doesn't want to pay the deposit, chances are he won't pay the bill when the job is done.

 

[graphicwarning]

Unless I have a purchase order in hand, or a customer with a well established account that I am not worried about paying me, it's 50% down, 50% due at completion.

I have an occasion, against my better judgement taken no deposit on some jobs because the person has complained about paying the deposit. And you know what... as others stated, they are the ones that never pay.

If they take issue with the deposit, chances are you'll never get any money from them in my experience. At least with 50% you should cover most of your costs if they choose not to pay going forward.

Stick with the 50/50. If he doesn't like it... let him go find someone else to rip off! Better to not have the job and be out no money than to have the job and never get paid, and lose your materials.

 

[Gino]

50% upfront/down/deposit/p!ss poor attitude.... call it what ya like. It's business.

He is paying into his own project to keep his costs down. He is financing his own job, instead of you being the bank. Again, call it what you like, you shouldn't hafta do it.


Just make sure in your quote you make it perfectly clear that as each truck is finished, payment of the balance as you go is due, before the next one is started.

 

[Johnmpcny]

walk in account, new business 50% down, pay on pickup then net 30 for business only. Real corporate accounts? Net 30 day one, most pay with in about 45.

Few major business established for years will work on deposits. One my best selling points is "you have a $2500 account open how do you like the bills sent? do you use a PO or sent to a certain person/address". I move the number based on the size of the account My hospitals and colleges have unlimited opened accounts.

Great advice I got was credit is a selling tool. Be too restrictive and you're hurting yourself. Raise the price on slow payers and keep a eye on them. If you never have bad debts you're too tight and hurting your growth.

You can also run credit checks pretty cheaply today.

That said this looks like a money loser if he is having issues right off. I would do the first one 50/50 and then on delivery for the rest.

A order like this printing all 6 at once is not big time savings. I would do one and see how it goes, if he is pain take the loss and move on. But a new account with 6 wraps is nice in mind.


John Henry

 

[player]

I have told customers that because the materials are such a large part of the cost, and the margins we make are so low, we don't have the profits to finance the jobs in our shop hence 50% down, balance due on completion.

I also agree the time you get ripped off is the time you don't get a deposit.

 

[S'N'S]

w

That said this looks like a money loser if he is having issues right off. I would do the first one 50/50 and then on delivery for the rest.

A order like this printing all 6 at once is not big time savings. I would do one and see how it goes, if he is pain take the loss and move on. But a new account with 6 wraps is nice in mind.


John Henry

www.speedwaypress.com

This is exactly how I would do it and only print as needed, not all 6.

 

[2B]

+1 for Johnmpcny

give them the option on the print order, print all at once and have a better chance of all the colors being the same. Print one at a time better for storage and handling but has a risk of being slight color shifts.

 

[player]

+1 for Johnmpcny

give them the option on the print order, print all at once and have a better chance of all the colors being the same. Print one at a time better for storage and handling but has a risk of being slight color shifts.

I wouldn't go there... The colour shifts won't be noticeable and the customer will doubt the quality.

 

[2B]

I wouldn't go there... The colour shifts won't be noticeable and the customer will doubt the quality.

then your customers must be a dream to work with as the colors shifts we have experienced from different rolls are noticeable to put it lightly.

the quality should not be a factor as the vinyl warranty is there (all be it a shallow offer from the maker) and you should have an install warranty that shows your confidence in what you do.

 

[Mike Paul]

How I would handle it.

Signed contract for the trailers that need the graphics now.

Promise of future work does not apply.

Don't print the graphics for all of them if he hasn't seen one with the graphics applied!

50% down per trailer, balance on completion of installation for each trailer.

 

[hotrod46]

Another View

You have gotten some great advice. I would agree with the 50% deposit for any job in this range. If he was not sure how many trailers he is doing just pick a number approx half. Here is what you should learn from this. You must have a "way" you do business. The customer must agree to follow this way. As owners our goal is to continually fine tune our "way" until it provides great results 100% of the time. The customer's goal is to get us to deviate from our way and accept a path that will not provide good results, except for them. Most often they use fear to do this. Fear of losing the job. Fear of them going to a competitor. Fear of not eating. At the end of the day you alone must determine what that way is.

 

[Biker Scout]

Usually these conversations start out all chummy, and everything is pointing like this new client might be a good regular source of income. Then when you start talking about money or deposits things get weird.

That's when I get to bust out my 'tude... and insult their pride to call their bluff. Here's what I said to the last client that did this to me: "Well, if you can't handle coming up with the deposit, then clearly money is an issue with you. I don't think we'll be a good fit for your project."




(Busts out checkbook a week later)

 

[Dennis422]

Thanks guys. i pretty much told him that I will not start work without a deposit.

i guys he will go to bother someone else locally.

 

[visual800]

Trust me, you wouldnt have got paid or went thru hell to get paid. He just went ahead and showed you that. If I have an eery feeling ill go 50 down if I absolutely despise them 100% down that usually drives them away.

always 50% on electrical never had issue

 

[player]

then your customers must be a dream to work with as the colors shifts we have experienced from different rolls are noticeable to put it lightly.

the quality should not be a factor as the vinyl warranty is there (all be it a shallow offer from the maker) and you should have an install warranty that shows your confidence in what you do.

I us e a Roland SP540V and have not noticed it as a problem. I was also thinking they are construction style trailers so any minor shift would not be something really bothersome to the client or really noticeable.

I probably don't deal with as many clients or have the volume you do though so I respect what you are saying..

 

[Snydo]

then your customers must be a dream to work with as the colors shifts we have experienced from different rolls are noticeable to put it lightly.

the quality should not be a factor as the vinyl warranty is there (all be it a shallow offer from the maker) and you should have an install warranty that shows your confidence in what you do.

You must be talking about 3M vinyl? where every roll off the same pallet is a different shade of white.

 

[Northern Design]

50/50

No 50% down, no work started