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Money for materials up front?

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  • Money for materials up front?

    Is it inappropriate to ask a customer to pay for materials up front? The reason I ask is because I am a part-timer who doesn't have the large bank account to pull money from in order to purchase materials. Should I simply let that be known to my customer. I can let them know that because I am a small business, they will be considered "top priority" whereas a bigger company will rush the job so they can get to another and make more money.
    What do you all think?

  • #2
    It's not unusual to request perhaps 20% to 30% of a landscape install job upfront ... and get progress payments ... that ... and get an account established with a wholesale nursery. If paid on completion and the jobs aren't long drawn out, chances are you'll have your money before the account is due at the wholesaler.

    Phil

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    • #3
      All of my landscape proposals/contracts require 50% down the day they sign. Never had one balk yet. Got a check yesterday for $3050.00, upon signing a $6100.00 garden.
      '05 GMC 2500HD
      '02 GMC 2500HD
      '01 Silverado 1500
      Garage full of stuff

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      • #4
        yeah i wotn go any lower then 1/3 the job up front that way im coverd bu ti liek to go 50 i have the money to cover it upfronyt but i liek to recieve a payment up front
        paul

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        • #5
          On most of my landscape installs I give the customer payment options (they like choices)1) 25% down balance upon completion 2) 50% down 25% completion balance 30 days. smaller jobs i usually just do at completion.(anything i can get done in a 1-2 days).Usually on my larger installs the down money is more or less a good faith statement on their part.
          Skip

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          • #6
            Money for materials up front?

            I always get a 50% deposit down (just like a previous post said). This way I am covered on any material and most of the labor. I would rather pay my guys first (that way they will come to work the next week), and get my cut on the back end. No matter how small or big the job is, I am covered.
            Lowcountry Landscapes

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            • #7
              Thanks everyone! The responses really helped.
              -SB

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              • #8
                If it is a small install (under than $1,000) I don't require money down. On larger jobs, I require a check in full before I leave the property.
                “veni, vidi, vici.”

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                • #9
                  Lawn and landscape business owners discuss and share all matters relating to commercial and residential lawn and landscape maintenance including lawn mowing, edging, trimming, mulching, hedge trimming, leaf removal, aeration, overseeding, dethatching and more.
                  Rustic Goat

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                  • #10
                    I ask for 1/3 down.

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                    • #11
                      Do I need a lawyer to write up a contract?

                      Or is that something "legally" I can do on my own?

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