Question about payment: Food for thought

[Weldon47]

I was just wondering:
How many of you let a customer walk out with work & then send you the payment in the mail? I'm not talking about your established clientèle but about a new or relatively new customer (without references) when you are doing one-off type engraving.
As for me, it is currently my policy (& has always been) that I require payment when the work is delivered or picked up by the client.

I assume this practice (payment due at time of service) to be the norm for us (engravers) but I am curious: What do you do?

Weldon

 

[mbroder]

If I'm not familiar with the client, not only do I require payment upon delivery, but I don't take checks either. I've only been burned once, but that was enough. I eventually did get paid, but I had to jump through hoops to get it. I'm set up to take debit cards now. Even if it's a large ticket item, the customer can call their bank to release the funds through debit. I only get charged $0.51 for each transaction. Certainly worth it.

 

[Michael Orticelli]

With my custom work, particularly with labor intensive pieces like belt buckles (wax carving, casting, finishing) I usually give a solid estimate, and then take at least a 50% deposit. The true balance remainder is determined after everything is weighed and the time spent is calculated, but 99% of the time it winds up being less than the original estimate. This gives me wiggle room in case things don't work out quite as planned. 50% down is a commitment on their part, so you know they won't walk away from the project, and the balance is paid when they pick up either with cash (king) or with credit card at the store.

Paypal is also handy for receiving verified funds through a credit card without being set up with a merchant service.

 

[jimzim75]

In such a situation, I consider them retail customers. Therefore treat them like retail customers. They don't leave the shop
without payment. If it's a customer over internet, I give an estimate. They either buy or they don't. I only had one non
payment and that was Jeweller that had an account. He will never do business with me again, ever. It was worth
the $89.00 to find out he's a dead beat.

Jim

 

[monk]

there are a few trusted clients in my computer data base. all others pay. many, i require a deposit up front. anyone not in favor of tha, well, go somewhere else.

 

[webad2006]

I agree with Michael, and Monk. 50% deposit up front, balance due at delivery. If you don't like it then go to someone else. I don't have alot of extra cash to play with, so the deposit helps me to at least cover the material cost if they decide to back out during the project.

 

[monk]

the best of us now and then will go belly up. at least with a reasonable deposit up front- if the client goes south, you got a little something to show. go anywhere and try to buy a few hundred bucks worth of anything without something down ! when the laughing settles, you'll find yourself back on the sidewalk.

 

[Haraga.com]

Who do you use for your debit card merchant accout? Thanks

 

[mbroder]

Who do you use for your debit card merchant accout? Thanks

It goes through Nova. Part of my Costco membership.

 

[Thierry Duguet]

I request 50% down and send the gun when finish (no COD). In almost 20 years I had 1 bad check made good within a few days. I did engrave for hundreds of individuals and did not experience any payment problems. Note that I seldom take "small" job ($2000.00 or less) so I do not engrave many gun a year or deal with many clients.
Since I do not advertise most of my client are known to me or "friend" of "friends". When I work for larger companies, Whinchester, Kolar, Dakota, etc I do not usually require down payment but I make very clear that I am expecting payment within 10 days, if I do not I just do not work with them.

 

[Bob Bullard]

Payment

Just before I retired I was dispatced on a servivce call and as luck would have it the problem was
inside the premise and when I told the customer and advised him it was his problem and in order
for me to repair it there was a charge, needless to say he went ballistic on me acused me of trying
to shake him down and seeing how it was going I called my supervisor and as luck would have it her supervisor was with her and they both should up and after a short but brief discussion the customer told me to
go ahead with the repair.I had it fixed in less than 5 minutes,advised him I was done and what the charge
was It started all over again and I finally lost my temper and in front of both of my supervisors I told him,
YOU DON'T PAY ME FOR WHAT I DO, BUT FOR WHAT I KNOW! and left.
So perhaps when some of you are trying to price your work you should think of that.

 

[Weldon47]

Bob,

Thanks for the example. I personnaly do not have a problem pricing my work though I know it is an area where many struggle. My goal was to get a "feel" for what is the "norm" among those of us who are professional engravers. Sort of a "standard" if you will. As I said in my post, my policy is that work is paid for when it is picked up (unless prior arrangements have been made). I was simply curious how my peers handled the same situation.
Thanks again to all who contributed to the thread.

Weldon