Required deposits and final payment/ business 101

[James]

Hi Friends,

Quick question, do you require a deposit and when do you ask for finale payment? My business partner broke up with me last week out of the blue and took two bookings with her!! I'm in the process of a job in which she never required a deposit and never established when payment is due. Long story short I'm on phase three of this house. I have always wanted to have an official contract that states all of this so there is no misunderstandings. I do primarily deal with ID's so you would think that they would know to have a deposit and have a check ready on completion. This really is a no-brainer to me... My ex-partner was under the idea that it appeared desparate.

Please tell me if Im wrong. It's probably a good thing our realtionship ran its course. I do want to handle things differently going forward.

Thanks for any advice you give me!!

Mel

[Pat]

I don't think it seems desperate at all but actually more proffesional. We require a third deposit to start samples and give out a date. We take our next third half way thru and then a final payment upon completion. There is a link on the forum with contract exaples. Although the laws change from state to state this may be a good starting point for you. You can then in turn take this info to your lawyer and have them update it so it agrees with your state laws.

Business can be overwhelming but your an artist and there are no more creative individuals then artists. In reality running a business is just as creative!

Check this link below:

http://www.fauxforum.com/viewtopic.php?t=30

[Linda Marsteller]

If it is a large, multi-project job, I get a deposit and bill in installments. That way I have cashflow.
IMO you can give them a partial invoice....listing the areas you have completed, the total price, the "installment due now" and then the balance due. Then you can do another installment or just "balance due upon completion".

[James]

Thank you Pat. I was hoping you might view this and give me your input. I'm writing for my husband who is an artist thru in and out!! SO with this you understand where his head is most of the time!! It's nice just having someone in this business confirm what we were feeling.

Truly appreciated!

By the way if you're ever in Dallas we would love to meet you.

Thanks again,

Mel

[James]

Thank you Linda! Again it's nice to know we're on the right track!

Truly appreciate it!!

Mel

[msarts]

I adhere to my state's laws...I can ask for one third up front. It's the accepted business model.

Receipt of the deposit means they get on the schedule. The rest of payments depend on how your contract is written. If the job runs more several weeks, I get a mid-term payment as well.

[brendainkc]

Here in Kansas, we get 1/2 down for all small and average size projects. When we receive the deposit, they get on the schedule and samples are made. The last day of the project, I give them a final invoice and they run into another room to get the checkbook!

Brenda

[d. neri-renner]

I get 25% non-refundable upfront to schedule a date and do client specific samples (which is stated on my quickbooks estimate). Also, all samples are property of D. Neri-Renner (which is the name of my busines). Then I get 25% the day I start, and the rest upon completion. All of this is stated on the bottom of the quickbooks estimate. I also explain to the customer at the initial meeting why the initial 25% is non-refundable. I tell them based on the samples that I show them from other jobs that I've done or just me playing around and my portfolio, they can see that I can paint and that if I book a slot of time for them and they cancel, I can't always slip someone in because I generally don't do samples until 1-2 weeks before their job and may not be prepared and the 25% covers my cost of supplies & time in their samples.

Hope that helps

dawn

[KathyFakesIt]

I do what Brenda does.