deposit reduction

[iwire]

Yeah. Its not a very good one.
Contractors have buildings and overhead too Thats about it

I see very little difference other then restaurants sell food and labor and ECs sell electrical stock and labor.


Personally as a customer I would have no problem with a deposit of up to a 1/3 on jobs under say $1.00-$8000.00.

If a contractor starts asking for more then 1/3 before they have actually worked with tools on the job that would send up a red flag for me.

To me that is a signal that this is not an established business on firm ground and is being run like a 'side job' I would move to another contractor.

 

[celtic]

A new Home Depot opens somewhere in the world every 26 hours. That is a complete store... lock, stock and barrel. Do I need to pay a deposit before I go in the new store?

If you have ever bougt something from HD, you have put a deposit into the new store :wink:

 

[Dennis Alwon]

do you all collect a deposit when you work for a builder or GC. My gc's would laugh at the thought.

 

[satcom]

do you all collect a deposit when you work for a builder or GC. My gc's would laugh at the thought.

You better bet your GC's and builders are getting a down payment.

 

[jrannis]

I see very little difference other then restaurants sell food and labor and ECs sell electrical stock and labor.


Personally as a customer I would have no problem with a deposit of up to a 1/3 on jobs under say $1.00-$8000.00.

If a contractor starts asking for more then 1/3 before they have actually worked with tools on the job that would send up a red flag for me.

To me that is a signal that this is not an established business on firm ground and is being run like a 'side job' I would move to another contractor.

I perfer having a nice six figure income, time off when I decide, and not chase deadbeats.
Lot better than working at a restaurant!!

 

[ike5547]

In California it is illegal for a contractor to take more than a 10% or $1000.00 deposit (whichever is less) for a home improvement. I've never asked for a deposit myself.

 

[iwire]

I perfer having a nice six figure income, time off when I decide, and not chase deadbeats.
Lot better than working at a restaurant!!

If your making six figures I assume you are at least a part owner, if not your working more hours then I would care to.

Not exactly the same as 'working at a restaurant'

The owner of a Boston sandwich shop I go to was talking about importing a specific Mercedes model not available here in the US.....I think he is doing OK.:grin:

 

[peter d]

The owner of a Boston sandwich shop I go to was talking about importing a specific Mercedes model not available here in the US.....I think he is doing OK.:grin:

They must be some gourmet sandwiches!

 

[iwire]

They must be some gourmet sandwiches!

No, just good pizza, subs and Gyros, but the shop is busy from lunch to well after midnight. :smile:

 

[peter d]

No, just good pizza, subs and Gyros, but the shop is busy from lunch to well after midnight. :smile:

Ahhh...sounds like the classic Greek-owned New England pizza place.

I'm sure most of us know it takes many long hours and 100% dedication to be that successful in the restaurant biz.

 

[cowboyjwc]

In California it is illegal for a contractor to take more than a 10% or $1000.00 deposit (whichever is less) for a home improvement. I've never asked for a deposit myself.

Just got out my CA Lcense Law book to look that up. I couldn't remember what it was.

If it weren't for bad contractors Mike Holmes wouldn't have a show on TV.

If I remember correctly my old boss got 80% at rough and 20% at final.

 

[Ed Carr]

I personally play it by ear. I got a call recently to do a new service entrance at a camp at a nearby lake. The owners of the poroperty lived out of state. I requested what I thought would cover the materials and offered any references they may want. When the job was done and inspected I sent the final bill and was paid promptly.The owners had no problem with the arrangement and as someone else here has said if they had found a problem with it I would certainly have seen that as a red flag.There are two unknowns here you the EC and the customer. Each scenario is different and I think that we get a feel for it as we go. Thanks, Ed

 

[ike5547]

If I remember correctly my old boss got 80% at rough and 20% at final.

I charge 60% then 40%. 80% and 20% sounds like a more realistic break down, though. After the rough you've probably completed and installed at least 80% of the actual labor and materials in most cases.

 

[jrannis]

If your making six figures I assume you are at least a part owner, if not your working more hours then I would care to.

Not exactly the same as 'working at a restaurant'

The owner of a Boston sandwich shop I go to was talking about importing a specific Mercedes model not available here in the US.....I think he is doing OK.:grin:

Ill bet you pay before you get that sandwich or within the hour of showing up

 

[jrannis]

In California it is illegal for a contractor to take more than a 10% or $1000.00 deposit (whichever is less) for a home improvement. I've never asked for a deposit myself.

Thats an easy one. Dont do home improvements in California!

 

[jrannis]

If your making six figures I assume you are at least a part owner, if not your working more hours then I would care to.

Not exactly the same as 'working at a restaurant'

The owner of a Boston sandwich shop I go to was talking about importing a specific Mercedes model not available here in the US.....I think he is doing OK.:grin:

How could I work less than you? You are playing on the internet all day long!:grin:

 

[Bulldog1401]

Deposit reduction

Deposit reduction

Total contract less than $10,000--50% down, 25% after rough inspection, 25% after final inspection.

Total contract greater than $10,000--25% down, 25% after service inspection, 25% after rough inspection, 25% after final inspection...

I usually stick my neck out on service calls or small jobs( less than $500.00) but only if I know the person.

Everything is in writing..up front.. no work starts before the deposit is recieved.. if it is payed with a check that means cleared and money in my hand/account...

 

[satnad]

Some pay daily - Old country style - pay for w. accomplished

Some pay daily - Old country style - pay for w. accomplished

In some situations I tell my customers that their credit is treated the same as some C. Cards treats me. Credit limit = $300.00 or $500.00 or $800.00 etc.
I will start the job, but at the end of the first day (sometimes the 2nd) I need a payment for permit, run around for materials and time used already to install materials etc. From then on it is called progress payments - the bigger the job the more progress payments. When a contract is signed (1 or 2 weeks before) 10% is collected - non refundable if they default! They could get you in the end BUT REMEMBER you already added such profit which might be equivalent to that last payment you may not get!

 

[satnad]

Not everybody lives in a nice place like Chapel Hill.

I would tell them that its against company policy.

Have you ever arrived and they say, when answered the door bell -'sorry but we decided to go with someone else '- years ago, I was left out with my jaw opened wide and a panel on my shoulder and NO WORK for 3 days!
You, I, any one, needs the 10% or 20% non refundable deposit days in advance. (I am not talking about a progress payment -that can waite a day or two)

 

[satnad]

Total contract less than $10,000--50% down, 25% after rough inspection, 25% after final inspection.

Total contract greater than $10,000--25% down, 25% after service inspection, 25% after rough inspection, 25% after final inspection...

I usually stick my neck out on service calls or small jobs( less than $500.00) but only if I know the person.

Everything is in writing..up front.. no work starts before the deposit is recieved.. if it is payed with a check that means cleared and money in my hand/account...

What are you going to do while waiting for 4 days for the check to clear?
For home owners or unknown GC I would make the $10,000.00 be paid in $800.00 progress payments installments. (Credit limit = $800.00 = profit amount = happy (no last payment = no profit = not as happy but not tottally depressing)