# Down Payments



## ClutchInc (Dec 5, 2012)

What, to you guys, is protocol for advance payment? Do you do half down and half at delivery? 25% down? Thanks.


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## treefox2118 (Sep 23, 2010)

If there is any discount in play, it's 100% down. Even if I knock $5 off a setup fee, I tell them it's 100% up front.

If no discounts, 50% down and 50% on pickup/shipping.


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## ClutchInc (Dec 5, 2012)

So, you just send out an invoice and wait for full payment before you start the job?


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## treefox2118 (Sep 23, 2010)

I send out an invoice and stipulate payment must be made by Xpm on y/y/y date for the price to be accurate and the turnaround to be approved.


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## ClutchInc (Dec 5, 2012)

Nice. Thank you for the info. I appreciate it!


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## binki (Jul 16, 2006)

New customers are 100% down, the rest are 50% or more. 50% on delivery. Nobody walks with goods without paying in full.


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## ClutchInc (Dec 5, 2012)

binki said:


> New customers are 100% down, the rest are 50% or more. 50% on delivery. Nobody walks with goods without paying in full.


Great info. Thank you very much. I was thinking about breaks for returning customers as well...


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## treefox2118 (Sep 23, 2010)

We give every customer a "gift card" rebate that expires in 30 days.

If they buy $500 worth of items, I'll give them a $50 gift card good in 30 days. If they buy $1500, I give them a $150 gift card. Must be used in full or the balance is lost. Pretty easy to get them back.


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## royster13 (Aug 14, 2007)

Depending on who the customers is, I try to get 50% or 100%.......But if it becomes an issue, I generally take the order and invoice upon delivery.....This gives me an advantage over some of my competition who have cash in their beer bottles to finance even small orders....


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## treefox2118 (Sep 23, 2010)

Agreed. Being able to offer NET0 is a huge benefit. I have a few clients on NET30 that we get because of it, even though we're more expensive than most of our competitors in our market.

Risky, but worth getting the business.


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## 20vK (Jul 9, 2011)

Normally all upfront. As a small business, cash flow is key. Taking payment upfront then allows me to use that money to push the business forward. Why wait half a month before you get to do something useful with the cash?

We do offer 50% for big orders ($5k) and organizations such as schools and charity events. Big companies get 30 days, as they are slow to process payments and their accounts are valuable, (if somewhat painful to absorb for us)


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## BidsMaven (Sep 23, 2011)

treefox2118 said:


> We give every customer a "gift card" rebate that expires in 30 days.
> 
> If they buy $500 worth of items, I'll give them a $50 gift card good in 30 days. If they buy $1500, I give them a $150 gift card. Must be used in full or the balance is lost. Pretty easy to get them back.


Interesting idea, Brian, I like it.


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## johnconvoy (Nov 29, 2013)

50% down, everytime no excuses


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## treefox2118 (Sep 23, 2010)

BidsMaven said:


> Interesting idea, Brian, I like it.


This is also how I handle almost all wholesale accounts now.

I give them retail pricing plus I give them a wholesale rebate good for 30-60 days.

Lady walks in and wants to start her "garment line". I tell her "We can do a 10/20/30 program for you."


First order: Retail price, plus a 10% rebate good for 60 days
Second order (in 60 days): Retail price, plus a 20% rebate good for 60 days
Third order (in 60 days after 2nd): Retail price, plus a 30% rebate good for 60 days.

Orders after the third automatically get the wholesale price, and they can still use any remaining rebate credit for it (if in the proper time frame).

This way, people can get a savings, but I don't get screwed over by those who buy once and disappear.


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## lkt1954 (Nov 15, 2009)

I like the gift card idea for both sales and referrals. I would think they would not have to be reloadable, just have a dollar amount printed on the front and a one time use.

Who are some good sources for these cards?

Thanks 
Larry


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## treefox2118 (Sep 23, 2010)

We preprinted an offset printed plastic card that is credit card sized. Then, I just attach a sticker to it with the gift card code and value!


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