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Poll: How much of a DEPOSIT do you take for new custom framing orders?

How large of a DEPOSIT do you USUALLY take, for new custom framing orders?

  • None/Not a Framer/Does Not Apply

    Votes: 1 2.6%

  • 00% NO deposit due in advance

    Votes: 1 2.6%

  • ~25% (1/4)

    Votes: 0 0.0%

  • ~33% (1/3)

    Votes: 0 0.0%

  • ~50% (1/2)

    Votes: 26 68.4%

  • ~66% (2/3)

    Votes: 0 0.0%

  • ~75% (3/4)

    Votes: 0 0.0%

  • 100% FULL payment due in advance

    Votes: 6 15.8%

  • Variable Amount most of the time

    Votes: 4 10.5%
  • Total voters
    38
  • Poll closed .
Mike Labbe

Mike Labbe

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Feedback is welcomed, and don't be surprised if you are quoted in an upcoming edition of FMO! :)
Thanks in advance for your participation and healthy discussion.

How much of a DEPOSIT do you take for new custom framing orders - and why?


Healthy discussion welcomed!
 
My usual question at the 'money moment' is, "Would you like to pay half today, or all of it?" There is almost never any objection. About half of our customers pay the whole balance up-front, to which I quip:
"Congratulations. Now your order will be free when you come back to pick it up." :smile-new:
 
I usually ask for 1/2 up front, and half of those customers usually choose to pay it all up front. Sadly I am not religious asking payment up front especially when I am busy or when the customer is in a rush. This is a terrible habit I am working on changing. I especially scold myself when my cash flow is low!
 
I end the conversation with this question: "How would you like to pay today." It is still hard for me, but I refuse to be the next to speak after asking the question.

I am always open to partial payment, and a few even ask for it. But the vast majority pay the full amount. There really is no financial advantage to them to pay half with a credit card since their order will be ready before a full billing cycle.
 
I am with Greg. I ask How would you like to take care of this today. Most pay in full, occasionally I get ask how much do I need to pay to which I reply we get at least 1/2 up front.

I do have a few customers which have a great track record and will pay when they pick up. But that is only about half dozen.

I learned a long time ago ASK for the deposit. They will pick up faster and it helps tremendously with Cash Flow.
 
I didn't put a vote in because it's not custom framing related.

However, in the retail part of our business (flooring), we require at least 50% deposit. Exceptions are payment in full for any item on sale, or any order under $1000.

In addition, we offer a 1% discount if paying in full by check or cash. This is becoming a popular option.
 
Gregory K. Norris said:
There really is no financial advantage to them to pay half with a credit card since their order will be ready before a full billing cycle.
Click to expand...

That's only true every day if you complete the order the same day and they come back and pick it up the same day as well.

Today could be the last day of my billing cycle, so paying the other half tomorrow would give me an extra month to pay for the other half.

If your average time to pickup (not completion) is 2 weeks, only about half your customers would be paying for all of it in the same billing cycle. The other half would have an extra month for the second half.

BTW, I'm not saying that you shouldn't ask for 100% down, just that your logic that it's being paid for all at once anyways is not accurate.
 
How would you like to pay for that today cash, check credit card in that order. If it is over $200.00 I will give option of 50%.
 
If your simply ask your customer, "How would you like to pay for that?"

Then, check their facial expression, for The Look. The Look that asks, "Do I have to pay the whole amount now?"

As soon as I see The Look, I immediately chime in with, "You can pay half now, and the balance when you pickup your completed order. Or, you can pay the full amount now. And if I have a good rapport with the customer, which is almost always, I add with a smile, "Then, when you pickup up your finished order, it will be a completely happy occasion."

If you collect anything less than half when the order is placed, you run the risk of turning your back room into an orphanage for unwanted frames. And no matter how good looking someone's kids are, no one else is going to want to buy a framed picture of them.

Demanding the full amount up from, may create a trust issue, so I don't push it. But if you do get full payment at the time of the order, it increases the likelihood that a second order will be placed at the time of pickup as they'll have a zero balance due. Be sure to show your enthusiasm when notifying the customer that her/his order is ready. This will hasten pickup.
 
I always ask for enough to cover my cost of the mats, glass, moulding, backing boards, misc parts and one hour labor. The amount will vary by the full cost of the finished work. Since I won't pay in full for work yet to be completed I never expect my customers to either. IMHO they should see the work and that its done to their satisfaction before they make the final payment. It also spreads the cash flow out a little. It's probably just me, but I think it's nice to have some money coming in on every picture when it's being picked up. Especially if it has been a slow week for new orders.
 
For me the big variable is whether they are past customers, and how they act. For new customers I generally ask for at least 50% of the estimate. For old customers, it depends on whether I have the moulding in stock.

But I make exceptions. I had one woman who, up front said, 'okay that is what I want and here is the art, but I'm not starting my teaching job at the College until August 15, and I won't get my first paycheck until Sep 1 and I will only be able to pay half then. I will pay the rest at the next paycheck after that. ' I had everything done by Sep 1, and on Sep 1 she called and said she would be in the next day with 50%. Two weeks later she came in with the rest, and picked it up. I have done additional stuff for her since then.
 
Yes I said new as to prevent people from throwing up their hands and saying "but I dont charge a deposit for someone i trust or my aunt sue". So we will all be on the same page, as if a 'new' customer. (standard policy)

Mike
 
I usually say, "the total comes to $XXX.XX, how would you like to pay for that today - half down or in full?

The order of asking for half down or in full is important and you can test it for yourself.
  • If you say - half down or in full, most will pay in full, since it is the last option
  • if you say - in full or half down, most will offer to only put half down, as it is the last option, last thing they heard.

Although I voted "variable" , it mostly works out to be full payment with the above method.
 
Re: Poll Results

Thank you for participating!

This poll has closed. Of those who participated:

68.42% reported that they take a 50% deposit
15.79% take FULL payment (100%) up front
2.62% don't require a deposit
 
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