Deposit

[eco-tech]

:welcome2:

1. I have a new customer who lost £130,000 last year (so he says).

How much % Deposit for materials should I ask for ?

Should I ask for a deposit at all ?

This job is worth £8k + do you chaps think 30 % of this would be ok ?


:rolleyes4:

 

[Paul.M]

He lost £130,000!!!! Have you told him to look down the side of his sofa .

30% up front at least and make sure you get a contract written up to protect your time and money.

 

[eco-tech]

LOL sofa wwwwwwwwwwwwaaaaaaaaaaaaaaaaahhhhhhhhhhaaaaaaaaaaaaaaahahahahahahaa

I feel a bit cheeky asking for it but I never ask for a deposit.

Do you chaps ?

 

[RWJ]

You could try asking for the cost of ALL materials... but he might tell you to go forth.

I've seen plenty of T's & C's that state 40% or the cost of materials which is ever highest.

Could you get the materials delivered to his site and get him to pay? That way if you sod off he's lost nothing and if he goes bust you've only lost labour costs and you might be able to haggle over the materials with the administrators (OK maybe not)??

I'm not sure what our deposit is as a company but I think it's more 20%.

 

[Paul.M]

Smaller firms/one man bands for jobs over a month have asked and agreed with customer 30% up front, 30% after first fix and remainder on completion.

Fare enough you can adjust the % to suit your clients needs but if your not sure about their financial affairs do a search with companies house (assuming its a company if they lost that amount of money). Search the net as well. Don't get stung for 8k at the start of the year.

 

[mhar]

Don't meteor (forum sponsors) do a scheme where they deliver the materials at retail cost to the customer who pays that price but you get charged a trade price. Suppose it works by you having a credit with them

 

[Dave 85]

If its a commercial job, a deposit and a contract are probably the way forward. Personally I would never ask for a deposit on a domestic job, because if the roles were reversed I would immedietly distrust someone asking me for a deposit. 40% before start of second fix is what I normally go for.

 

[highspark]

I always ask for a deposit weather it be domestic or commercial. You cannot be too careful. If someone is not willing to pay a 25% deposit upfront to cover materials they are unlikely to pay you the full balance. I do however have a written contract signed with all my customers - on the contract it says materials will be delivered to the customers property on the same day as the deposit is paid. Its about trust on both sides. A job worth 8k I'd want all materials bought to bge covered. This way you won't owe the wholesalers

 

[eco-tech]

Thanks chaps,

Spoke to the client. The client is going to provide all lighting fittings.

I said to him a 30% deposit for 1st fix.


He agreed that he asks his customers for a 30% deposit but this one only gave 20%. I did not move on my 30% and got it.


Yes it's commercial.

Never ask for any deposit on a rewire etc but I think when you got £2000 plus of conduit and cable you need that funding !

Thanks again for the advise (great site)

 

[eco-tech]

Advice lol

 

[EoinConway]

Thanks mharries, yes we certainly do. In simple terms, it allows your customer to pay us directly for the materials without you loosing out on the discount you rightly deserve as an Electrician. We then post you a cheque for the difference between the 'Joe Bloggs' price total and your discounted price total. It doesn't eliminate all of your risk but a lot of Electricians have really latched onto it in the past 2-3 months

Further details & Video here or PM me if you want more info

Don't meteor (forum sponsors) do a scheme where they deliver the materials at retail cost to the customer who pays that price but you get charged a trade price. Suppose it works by you having a credit with them

 

[RWJ]

Thanks mharries, yes we certainly do. In simple terms, it allows your customer to pay us directly for the materials without you loosing out on the discount you rightly deserve as an Electrician. We then post you a cheque for the difference between the 'Joe Bloggs' price total and your discounted price total. It doesn't eliminate all of your risk but a lot of Electricians have really latched onto it in the past 2-3 months

Further details & Video here or PM me if you want more info

Fantastic idea!!! "Great Seller A+++++++++++++++" as you would say on ebay

 

[RWJ]

Further details & Video here or PM me if you want more info

Like the video..... not sure on the banjo "_ _ _ _ kicking music" lololol

Is that you Eoin presenting the video?
Whoever it is does a good job infront of camera....and that's not easy!!

 

[EoinConway]

It's not me RWJ, its a long time since i had that much hair:hair2:

Is that you Eoin presenting the video?
However it is does a good job infront of camera....and that's not easy!![/QUOTE]

 

[mstep77]

Company Check Website - find free UK Limited company information

For use with limited companies.
Search a few of the companies you do regular work for and you will start to get a feel for which companies are in good health and which are not.

There is a strong correlation between companies who consistantly pay late and companies who go bust.