Payment of deposit before starting work

[lerp]

Some customers ask if I would like a deposit before starting work. I have always declined. I have a couple of three day jobs with four men to arrange. I am going to ask for a 50% deposit as they are new customers and I would like some financial security before starting work.

 

Does this sound reasonable? and do any other arb. businesses ask for deposits?

[dan494]

I think that's fair enough if you and the customer is comfortable with it. I've never done it with tree work but do with fencing to cover materials

[lerp]

Yes I suppose it is more justifiable if you are getting a deposit to cover materials for a job like fencing. Whereas tree work is mainly labour and a overheads.

 

I suppose that I am just not confident with these customers paying me at end of job without trying to get extra work extra for free. I have not worked for them before and do not want to commit my self to three days paying three men with no guarantee of getting paid.

 

It is just a judgement call.

[jaime bray]

Do you have terms and conditions of business? Theres some the arb associations AWG produced if you wish to use them. Check under the 'help for arborist' icon

[Kev Stephenson]

I did a full week job before Christmas and asked for 40% after 2 days in cash or as a bank transfer. Customer was more than happy, bank transferred before we left on day 2 and brought me a print out as proof. Payed the balance on day 5 in the same way. I wouldn't ask for money up front though unless I was supplying materials or hiring in non standard kit (cherry picker, etc)

[gnfencer]

I always insist on materials paid upfront

[Burgess]

If it's over £3K then we ask for a 40% deposit. Or if its fencing if its over £1500 we ask for a deposit.

 

One guy didn't want to but we agreed in the end to 40% half way through the job and then the rest of completion.

[treequip]

Had a developer who was a bad payer, he was apoplectic when I asked for 50% pro forma