Shorts Report post Posted July 15, 2009 ...mmmm how about "no" So now and then we run across a customer who wants to see the item first before they'll pay you. Don't fall for it. While I haven't gotten caught in that trap yet I've read many stories here that make my skin crawl. Before going forward with that customer for anything, while it can feel uncomfortable a first, tell them that you require a nonrefundable deposit for any work to begin. Otherwise you may get left high and dry holding a custom item you can't sell. Now you've wasted materials and time and you get to eat the cost. So, what's a fair percentage for a deposit? Quote Share this post Link to post Share on other sites
Hilly Report post Posted July 15, 2009 ...mmmm how about "no" So now and then we run across a customer who wants to see the item first before they'll pay you. Don't fall for it. While I haven't gotten caught in that trap yet I've read many stories here that make my skin crawl. Before going forward with that customer for anything, while it can feel uncomfortable a first, tell them that you require a nonrefundable deposit for any work to begin. Otherwise you may get left high and dry holding a custom item you can't sell. Now you've wasted materials and time and you get to eat the cost. So, what's a fair percentage for a deposit? If it was for something that I would never be able to sell to someone else, I'd charge 100% non-refundable up front, or tell the customer to go find someone else to do the work. Quote Share this post Link to post Share on other sites
Shorts Report post Posted July 15, 2009 Yeah, I like that. My MO is payment first. If the customer isn't serious enough to pay, they're not serious enough about wanting that item. Now I understand an empathize with their side, paying for a product that is yet to be seen. That's asking a lot of trust. In that instance I'm willing to compromise. I'll compromise some materials but it won't be half-hearted effort. I'm not intending to waste material rather knock their socks off. But with my compromise the customer must show me good faith and commitment to the item by handing over "material" of their own in the form of payment. People can mean well but commitment is stronger when there is a risk. Quote Share this post Link to post Share on other sites
Johanna Report post Posted July 15, 2009 (edited) I closed the doors on the leather shop 10 years ago, but we always insisted on a minimum of a 50% deposit for any custom work. It meant the customer was serious, and there wouldn't be a surprised look when we delivered the goods. No deposit, no work. If the customer died or went to jail in the meantime, we were only out our time, not materials with a 50% down policy. I wish I had a pic of the purse we made with "Ruth" carved into it- I don't remember how we got "stuck" with it, but we took it along to all the shows for years and one day a lady named "Ruth" insisted on buying it. You just never know! We also wrote up a detailed work order when we accepted the non-refundable deposit, reviewed it with our customer, and had them SIGN it. That cleared up any misunderstandings later on...it was all there in black and white. If you do a search for "disclaimer" on the board, somewhere there is a thread of what all was on that work order paper. Hope it helps you or someone else. Johanna http://leatherworker.net/forum/index.php?s...;hl=disclaimers Edited July 15, 2009 by Johanna found the link Quote Share this post Link to post Share on other sites
Shorts Report post Posted July 15, 2009 Thanks Johanna, I knew I saw that somewhere. Much of my work is over the internet which makes these custom orders more of a challenge. Quote Share this post Link to post Share on other sites
Spence Report post Posted July 15, 2009 I've heard, recently, that emails are now considered legal and binding for purchases, as long as the order is detailed. I would also demand a 50% non-refundable deposit. Just show them what you've done for others and if that's not enough, they need to his the yard sales. Quote Share this post Link to post Share on other sites
hidepounder Report post Posted July 15, 2009 (edited) Requiring a deposit is pretty standard. I require 50% with the balance on completion. On internet sales, I require the balance before I ship. I usually will send a photo of the finished product along with the final invoice. I don't ship until payment is confirmed. I really don't want to insist on full payment at the time of order, but that is probably the safest way to protect yourself. I have a friend in OK who is very successful. He requires a non-refundable deposit which puts that customer in "line". When it is that customers turn, he requires the balance before he starts the project. If he does not receive payment within a certain window, the customers name goes to the bottom of the stack. When it is his turn again, he requests payment a second time. If not received on the second go round, he cancels the order and keeps the deposit. Not a bad policy! Bob Edited July 15, 2009 by hidepounder Quote Share this post Link to post Share on other sites
jbird Report post Posted July 15, 2009 I ask for a 75% down on all my holster belts and any special items and to me that's more than fair. Josh Quote Share this post Link to post Share on other sites
CitizenKate Report post Posted July 15, 2009 Requiring a deposit is pretty standard. I require 50% with the balance on completion. On internet sales, I require the balance before I ship. I usually will send a photo of the finished product along with the final invoice. I don't ship until payment is confirmed. That's the same policy I use. I also like to send photos of the work before shipping, so that if there is an issue that needs to be resolved, it can be done before shipping it out and back again. I really love that email is used to handle so many of my orders, because there rarely is any of that "I told you to make it 44-46 inches" nonsense. You can just whip out the email they sent you, saying the waist size is 42 inches, and save yourself from having to re-do the project. (I actually did have that happen once. He said 42, and I made it 42. End of story. Too bad he couldn't wear it until he lost 20 pounds!) If the customer insists on being able to see the work before they pay anything, I would have no qualms about passing on the sale. Being able to see work samples should be good enough. I made the mistake (only ONCE) of shipping a custom wallet to someone only after receiving a very small down payment. He got re-assigned to California, and I never heard from him again. But I'm really okay with a non-refundable 50% deposit. It covers the materials and some of the labor, and makes it very unlikely the customer will dog me. And I really don't like having to hold on to money I have not yet earned. Kate Quote Share this post Link to post Share on other sites
Shorts Report post Posted July 15, 2009 That's the same policy I use. I also like to send photos of the work before shipping, so that if there is an issue that needs to be resolved, it can be done before shipping it out and back again.I really love that email is used to handle so many of my orders, because there rarely is any of that "I told you to make it 44-46 inches" nonsense. You can just whip out the email they sent you, saying the waist size is 42 inches, and save yourself from having to re-do the project. (I actually did have that happen once. He said 42, and I made it 42. End of story. Too bad he couldn't wear it until he lost 20 pounds!) If the customer insists on being able to see the work before they pay anything, I would have no qualms about passing on the sale. Being able to see work samples should be good enough. I made the mistake (only ONCE) of shipping a custom wallet to someone only after receiving a very small down payment. He got re-assigned to California, and I never heard from him again. But I'm really okay with a non-refundable 50% deposit. It covers the materials and some of the labor, and makes it very unlikely the customer will dog me. And I really don't like having to hold on to money I have not yet earned. Kate I hear that. If I've got someone's money for leather you can be sure I'm not sitting around wondering what I'll do for the day. It's my name out there and I'll be darned if it's going to be smeared for anything. Quote Share this post Link to post Share on other sites