Thursday, October 2, 2008

Why there's a deposit on services

Note: This post comes on a day when I've decided that too much time is being spent chasing non payers, and honestly I was pretty ticked about it. Update though - sent out some collection notices, everyone, EVERYONE, who owed me either paid immediately or agreed to pay in the next week.

That said, I still think a stricter policy will help... here's the reasons for deposits, from my first hand experience:

1. I've had nothing but trouble collecting from people who put no deposit down. I didn't think it was necessary to get a deposit on something for only a few hundred dollars, yet time and again its these small project clients that balk at paying.

2. It gets the client involved in the project, now there's real money involved, and the client wants to see the project through.

So new policy -
Minimum project fee is $500.
Minimum deposit is $500.
Any projects over $500 requires a 50% deposit, with the minimum being $500.
All project fees, as always, are due immediately on completion. There are no terms.
Any unpaid project fees get sent to collection 30 days after project completion.

Seems like a jerk move, but honestly, we are all small business owners, and I need to be paid for my time.


Ryan said...

Chris I like the content of the site but it's incredibly difficult if not impossible to read with the grey font on grey background...I'd switch to black font...just a suggestion.

Chris Benjamin said...

Hi Ryan,

Yeah I just realized today it was posting in the white font... changing now. Need to do some other cleanup as well. thanks!