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Deposit
- Thread starter superlate
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onecallpowerw
New Member
We always ask for 50%. This we only do on Deck Restoration jobs. This is due to the nature of weather. Sometimes we go 3-5 days before we can go back and stain. Well if you have employees, they want their money. So at the very least, I would charge on all Deck Jobs...
oneness
New Member
Many who do wood restoration charge a deposit, due to the initial costs of sealer, and the time involved.
If I get stiffed on a housewash, I can live with it. If I get stiffed on a $2500.00 deck job where I've spent hundreds out of my pocket for sealer, that's hard to live with.
If I get stiffed on a housewash, I can live with it. If I get stiffed on a $2500.00 deck job where I've spent hundreds out of my pocket for sealer, that's hard to live with.
Michael T
New Member
deposit .... yes or no
In my opinion. Remember this is my opinion only and it comes from 18 years in P/W business and 10 years in the construction business.
Asking for a deposit shows unprofessional behavior. If you are in business you should be able to carry the cost of materials and labor for the short term. You do carry insurance cost and fuel costs? What this says to me is your company doesn't have the financial strength to be in the business. I service several commercial accounts and some I don't get paid for 45 - 60 days. But my employees get paid weekly. Part of being in business is caring some financial responsibility. What I do on a deck job is ask for a completion type draw. IE: strip the deck and prepare for sealing 50%, and the balance at the completion of the job. But usually I get paid at the end. I have never been stiffed by a homeowner. But I have had some commercial accounts go under or bankrupt and leave me with only the accounts receivables. They have lied to my face and cheated me. But they have to deal with that. In 18 years I have lost less than 10,000.00 but I have given away that much also.
When I was in the construction business and a sub wanted money up front I would tell them straight up NO. If you don't have the strength to be in business get out . I will pay you when you are complete or I will pay the material supplier when materials are delivered. And when I pay you I want to see paid invoices for the material used on this job. Ive had suppliers come after me because a sub didn't pay his material bill that I paid him for.
To sum it up . In my opinion. Asking for money up front is unprofessional. And it sends a message that you are not a professional. But this is my opinion. It may seem a little harsh but just something to think about.
Michael T
In my opinion. Remember this is my opinion only and it comes from 18 years in P/W business and 10 years in the construction business.
Asking for a deposit shows unprofessional behavior. If you are in business you should be able to carry the cost of materials and labor for the short term. You do carry insurance cost and fuel costs? What this says to me is your company doesn't have the financial strength to be in the business. I service several commercial accounts and some I don't get paid for 45 - 60 days. But my employees get paid weekly. Part of being in business is caring some financial responsibility. What I do on a deck job is ask for a completion type draw. IE: strip the deck and prepare for sealing 50%, and the balance at the completion of the job. But usually I get paid at the end. I have never been stiffed by a homeowner. But I have had some commercial accounts go under or bankrupt and leave me with only the accounts receivables. They have lied to my face and cheated me. But they have to deal with that. In 18 years I have lost less than 10,000.00 but I have given away that much also.
When I was in the construction business and a sub wanted money up front I would tell them straight up NO. If you don't have the strength to be in business get out . I will pay you when you are complete or I will pay the material supplier when materials are delivered. And when I pay you I want to see paid invoices for the material used on this job. Ive had suppliers come after me because a sub didn't pay his material bill that I paid him for.
To sum it up . In my opinion. Asking for money up front is unprofessional. And it sends a message that you are not a professional. But this is my opinion. It may seem a little harsh but just something to think about.
Michael T
O
OrangeCrest
Guest
I have to agree with Michael...
That is what credit cards are good for if you don't have the cash on hand.
That is what credit cards are good for if you don't have the cash on hand.
Aplus
New Member
Re: deposit .... yes or no
I agree with this 100%
On a typical deck I may have only a $100-150 in materials. No big deal.
Some contractors have to collect downpayments due to the nature of their business. Obviously it becomes important to collect a downpayment before ordering $5000 in materials for say a roof and siding.
On a big job where I have to special order certain stains, I may ask for a small deposit to protect myself in the event they change their mind on the job, or decide they don't like the color they picked.
Of course, like Michael said, it's just my opinion too.
I agree with this 100%
On a typical deck I may have only a $100-150 in materials. No big deal.
Some contractors have to collect downpayments due to the nature of their business. Obviously it becomes important to collect a downpayment before ordering $5000 in materials for say a roof and siding.
On a big job where I have to special order certain stains, I may ask for a small deposit to protect myself in the event they change their mind on the job, or decide they don't like the color they picked.
Of course, like Michael said, it's just my opinion too.
reedsterstl
New Member
I ask for 25% deposit on the day I show up to start the deck. I require the balance to be paid on the day of job completion. Never had any trouble with this. I sometimes get the deposit mailed to me and I return the deposit and advise the homeowner it is not due until the day I start.
Reed
Reed
onecallpowerw
New Member
Its funny to see all saying this shows a lack of professionalism. Of course these are the ones from TEXAS, CALIFORNIA. Not much rain there to worry about. Try living in Maryland. We carry unlimited AMEX but I cant pay out $2500 per week in payroll with this, can I. Consider, there are 4 familys that I am feeding, 3 trucks, 3 rigs etc...... Not to mention all the payroll expenses that go with it.
It is not a matter of not gettin paid because in 8 years, I have only been screwed twice. If you are collecting a deposit to be able to buy stain then you should not be in this business. You might as well go work from paycheck to paycheck for someone else.
It is not a matter of not gettin paid because in 8 years, I have only been screwed twice. If you are collecting a deposit to be able to buy stain then you should not be in this business. You might as well go work from paycheck to paycheck for someone else.
Henry Bockman
Member
Sometimes we collect deposits in fact, most contractors due and it's usually expected but its part of our contracts we have with our clients. It helps when it rains for 2 weeks strait and you can't seal but you still have 6 guys to pay. We only require 1/3 for a deposit though when we ask for it. That's all your allowed to request in Maryland
This is my second year in business and I dont ask for a deposit. I have this clause in my bid proposals (a deposit of 0.00 is required) I have done quite a bit and I havent got stiffed. Actually I think my no depostit policy has gained me work I tell my customers that payment is do at the end of the project if they are satisifed. I figure that if they are going to screw you they will do it with or without giving a deposit - either by filing an insurance claim or bad publicity. After all I do sell soap water - Hell I dont even own the water, I just add the soap.
On deck jobs and I have only done 13, I have the homeowner buy the supplies and I will apply it. I charge them for cleaninh and application. I do not have the overhead of employees.
Mathew Johnson
Pressure Washing Services
www.pwscleaning.com
On deck jobs and I have only done 13, I have the homeowner buy the supplies and I will apply it. I charge them for cleaninh and application. I do not have the overhead of employees.
Mathew Johnson
Pressure Washing Services
www.pwscleaning.com
Henry Bockman
Member
Hey Mathew,
Having the client buy your sealer gives you a bit of protection since your not out the cost but sooner or later they may start thinking, what do I need this guy for if I buy the sealer why not just get a powerwasher too?
I personally don't like most sealer products they carry in stores. I prefer ready seal or abrx100 myself. Ready seal is my favorite.
Eventually you may hire employees and expand your company a bit, once you do you may have to do things a bit differently. Hopefully that won't happen though, it sounds like things are pretty good for you the way they aree now.
Having the client buy your sealer gives you a bit of protection since your not out the cost but sooner or later they may start thinking, what do I need this guy for if I buy the sealer why not just get a powerwasher too?
I personally don't like most sealer products they carry in stores. I prefer ready seal or abrx100 myself. Ready seal is my favorite.
Eventually you may hire employees and expand your company a bit, once you do you may have to do things a bit differently. Hopefully that won't happen though, it sounds like things are pretty good for you the way they aree now.