How do you factor deposits?

admin

Just curious how you guys do this. Say John doe comes in to your shop and says I want this custom such and such made. You figure up an estimate and he's good with it. Do you ask for a certain percentage for a deposit? How do YOU factor it?
Reply:I think you'd at least want the deposit to cover the cost of materials.
Reply:I am with dbotos, the deposit should at least cover the cost of materials.  I might also add the cost of consumables, like gas and wire.If it is a big project, I would use maybe three payments, a deposit, a second payment when the project gets to a certain stage of completion, and then a final payment.But to some extent, it depends on the client.   If it is someone who have worked with before, I would be less likely to ask for a deposit.   I have a regular client where I ship the goods and bill them, and get a check later.   New folks pay first and then I ship the product.   But most of my clients are out of state, I have never seen their face.RichardSculptures in copper and other metalshttp://www.fergusonsculpture.comSyncrowave 200 Millermatic 211Readywelder spoolgunHypertherm 600 plasma cutterThermal Arc GMS300 Victor OA torchHomemade Blacksmith propane forge
Reply:Pretty much what they said. New customers put up cost of material, and pay balance on completion. No ifs, ands, or buts.Weld like a "WELDOR", not a wel-"DERR" MillerDynasty700DX,Dynasty350DX4ea,Dynasty200DX,Li  ncolnSW200-2ea.,MillerMatic350P,MillerMatic200w/spoolgun,MKCobraMig260,Lincoln SP-170T,PlasmaCam/Hypertherm1250,HFProTig2ea,MigMax1ea.
Reply:Yep, depending on if I know the customer or not, I usually ask for 1/2 down and 1/2 on delivery. If it is someone I know, I usually don't worry about it. If it is a big job with high materials cost I will ask for them to cover materials up front.Miller Dynasty 200DXMiller 252 Miller 250xMiller Syncrowave 250Miller AEAD200 LegendMiller 375 Xtreme plasmaLincoln WeldPak 100Victor O/A
Reply:I often let them buy their own. I give them a list and send them on their way. If the truck shows up, I build. If they don't show, I sell.No calling around. No "I can get it. I'll call you with a price". " I think the distri" Here's the list. Have it sent over.G'bye.Bubble gumTooth pixDuct tapeBlack glueGBMF hammerScrew gun --bad battery (see above)
Reply:On modest sized bid jobs, get a deposit for all the materials and 1/2 the labor. On large time and material jobs, settle accounts at the end of each week.
Reply:I do not weld for a living but I do do custom woodworking and my min is cost plus 15%
Reply:any more if its someone i dont know its 1/2 downVantage 500's LN-25's, VI-400's, cobramatics, Miller migs, synch 350 LX, Powcon inverters, XMT's, 250 Ton Acurrpress 12' brake, 1/4" 10' Atlantic shear,Koikie plasma table W/ esab plasmas. marvel & hyd-mech saws, pirrana & metal muncher punches.
Reply:Thanks for the replies. I have regular people I don't worry about but others I was doing 25% which seems to me to be light. I may factor in some labor as well
Reply:A small shop I worked for that made placer mining equipment it was 50 % down in cash.  My boss figured that he could cover the cost of his materials and easily sell the unit to another miner for full price.  :')