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Taking Deposits

Discussion in 'Business Operations' started by evergreenco, Apr 14, 2005.

  1. evergreenco

    evergreenco LawnSite Member
    from NC
    Messages: 11

    How many of you take deposits on installation work? I am so tired of poor cash flow and having 60K out all the time for work completed.
    Currently I do not take any money from homeowners until the job is complete. My contractors of course pay weekly or once every two weeks and i have to front that money for them!
  2. spoolinaround

    spoolinaround LawnSite Senior Member
    Messages: 331

    homeowners are ALWAYS materials & any rental fees upfront, commercials are 30% upfront
  3. KINGjosh

    KINGjosh LawnSite Senior Member
    Messages: 531

    Any jobs that the materials or other supplies are over $300, I get the money for the material upfront.
  4. treedoc1

    treedoc1 LawnSite Senior Member
    Messages: 319

    under 20K for total project...50% upon acceptance, 50% upon completion

    over 20K for total project...1/3 upon acceptance, 1/3 at 1/2 way point, 1/3 upon completion

    We are usually booked 6-8 weeks in advance. The deposit gets them on the schedule.
  5. i_plant_art

    i_plant_art LawnSite Senior Member
    Messages: 558

    30% to hold a spot.. dont want leave 30% no problem ill get there after i get done with everyone else. now a days even wiht contracts its still a PITA to get your $$ from people sometimes. Everything requires the30% unless its a long time customer who i have had NO problems with.

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