Deposits $$$$$$$$

osgood

SGF, Supreme Grumble Framer
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Its about time I started to ask customers for a deposit at the time of order.
Its a real pain in the neck at the moment, lots of finished jobs, but no-one wants to pick them up and pay for them. They all have lots of "bills" at the moment. I wonder what the **** they think this piece of paper is thatI have for them? A round the world lifetime trip on the bloody 'QEII' I suppose!

Seriously now,
Having read an article in March 2000 Decor (just arrived by carrier pigeon) which suggested a 50% deposit, I wonder how I can introduce this to my customers without them becoming my former customers?

1. Do I place a notice on the design counter or near the cash register?
What would I say on this notice?
2. Do I just ask for it?
3. Is 50% the correct amount?

Thank you in advance, for your helpful answers!!!
 
We ask for 50%. If we have to wait for the balance at least we can pay our suppliers.

There are some nice ways to ask.

"We usually request a deposit of about half the estimate. Would your like to use a credit card or another means to to get this project on the schedule?"

"Well we are all done with the estimate. With your deposit of about half we can get you on the schedule and have the project done in about two weeks. Shall we go ahead?"

If you bury the request with other issues it becomes deemphasized. Just use the your sales skills.

We always get 50% up front.

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Timberwoman
AL
I cut the mat, I pet the cat.
 
Always, always, always get a deposit. I have a sign that says "we design and make a custom product and therefore require a deposit", very rare that we have a problem....however, the only time I have had trouble with people picking up their frames is when I didn't get a deposit.

Case in point: A local doctor who I have done about $3000 worth of framing over the last 5-6 years. Good customer, usually slow in picking up, but we always had our deposit so no problem. With his last order of April '99 I forgot the deposit. After about 8 months of low key sugestions I got serious, 20 messages on his pager and 4 visits to his practice I finally delivered the frames and had him sign an invoice. Three more months and still nothing. I finally had to sue him ( in Canada we have a small claims court for up to $6000 ). He didn't file a defence so I got a summary judgement and next week I'm forcing him into a debitors examination. I will have to spend a day in court next week. Along the way I have found out that he is known to be an arrogant, self-centred SOB who does this alot but I seem to be the only one so far to take him to court. Hopefully I'll get my money.

Moral: ALWAYS get a deposit!

[This message has been edited by ChrisW (edited May 19, 2000).]
 
It also helps to have a line as part of the release. "I promise to pay........." This is a promisary note clause. It will assist if you have to go through collection (court or otherwise).

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Jerome Feig CPF ISA
Field Art Studio
Pleasant Ridge, MI
248-399-1320
248-399-7018 fax
 
Yes,yes,yes - always get a deposit. We strive to get payment in full at the time the order is placed. This works wonders on our cash flow. The way I explain it to my employees (and even a customer or two) is this: We are actually DOING THE CUSTOMER A FAVOR by getting them to pay in advance. See, the way I look at it, when someone walks into our store with something to be framed, they know that they are going to have to PAY MONEY to get the framing done, therefore they already have it in their mind that they will be SPENDING MONEY on framing. Thus, when we get them to pay us in advance, we are DOING THEM A FAVOR by ensuring that the money they have set aside in their mind for framing gets spent on framing, and not anything else in the meantime between picking out the framing and picking up the completed work. Works for me, anyway.
 
We also ask for 50 % down but will take less if they are little short. I have never had a problem with the customer not wanting to leave a deposit.
Carl
 
I'm sorry to go against the grain here, one of my "points of difference" is that we do not require a deposit on work, a big risk? yes, worth advertising? yes, effective? yes
 
As the saying goes, Just do it! Quite often our clients ask us, How much deposit we need? We simply answer, Why not take care of the total balance right now and we'll pick up the sales tax? If not, we tell them we require a 50% deposit to get the order going, and cannot start any job without the deposit. BTW, our pickup rate is 100% and it's usually within a week.

Bruce McElhaney
McElhaney Photography and gallery
Livonia, MI
 
No argument from me! Definitely request a 50% deposit. If your customers question this, just tell them that you have to cover the cost of your materials. This usually calms them down.

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Seth J. Bogdanove, CPF
 
Your current customers who pay and pick up on time you already know so I wouldn't hassle them with the deposit but when the new ones come in just request it prior to ordering.

It's not easy and I'm able to order new carpet and plumbing with no deposit but I usually ask and more and more people ask me if I need a deposit when I give them the price and that opens the door to ask for the 50%.
 
Update frome earlier post:

My reluctant doctor customer came in today and paid his account ( tomorrow I would have been in court ),in full, $100 bills, and kicked in $200 more after apologizing profusely. He said I had always treated him well and did excellent work that was always commented on ( about 15 frames in his offices ) and that he had no right making this so difficult ( true ). He asked if I was willing to do more framing, quickly stating that he would pay for it all, in cash right then.

So, not only did I get my money plus intrest , court costs and extra for my aggravation, I kept him as a customer!

Business shouldn't be this hard.
 
Way to go CW. A lesson for us all.

Framers been up to new tricks again.....flaming folders!

[This message has been edited by JPete (edited May 26, 2000).]
 
Hi Scarfinger,

May I suggest that you revise your math a bit. Since less than 1% of your customers cause this problem with maybe at total $1000 in framing over whatever your sales are would likely amount to less than 1% charged to the rest. Is it worth it? We feel it is just part of being in business and don't get too upset about it. Periodically we pester people to get it straightened out but I can not justify wasting too much of my time on it. I should be working on marketing, managing and sales. These little things tend to knock me off course. Anyway my best to you.

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Timberwoman
AL
I cut the mat, I pet the cat.
 
I just simply tell the customer that my book keeper (Myself) gets mad when I don't take deposits, because it effects the steady cash flow that is generated by taking deposits.
 
Os: I didn't use to ask for a deposit. Then I got fed up with having so much finished work that I could not get folks to come and get. Almost always it was folks who had made no deposit.

Now we say, "We do require a deposit". They say how much? We answer, "You can pay for half now or the whole thing". 7 out of 10 pay the whole amount.

For me it was necessary to change my attitude. I used to be kinda sheepinh about it; now I look 'em straight in the eye and ask for their money. Weird, they seem to like it.

OJ
 
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