Posted:  22 Apr 2013 20:36
Registered User Currently Offline Join Date: Nov 2011	Posts:  22 Reputation: Unranked User Rank: 1 - Seedling
I'm having trouble knowing how much of a deposit to take on a new job. Let's hypothetically say to just purchase and install the plants it's 2,000.  Say the client wants to lease and  have the plants maintained, and it's 300.00/month. How much of a deposit would you request. Thanks! Nicki

Posted:  22 Apr 2013 23:17
Registered User Currently Offline Join Date: Jan 2011	Posts:  798 Reputation:  43 User Rank: 10 - Blossom
Leases typically don't involve anything beyond maybe first and last months' payments at inception, plus installation and delivery labor billed separately up front.  Otherwise, you bill monthly or whatever you have agreed with the client...that's the point of leasing, to minimize up-front costs and spread the costs over the term of the lease. For purchase-plus-maintenance, you can ask for a small deposit when the order is confirmed, but most clients will assume you have sufficient capital to acquire the plants, containers and other materials to install the job and will expect either C. O. D. or terms (net 10, net 30).  Asking for a sizable deposit prior to installation is a red flag to a prospective client that maybe you aren't an established company.

Posted:  24 Apr 2013 03:29
Registered User Currently Offline Join Date: Mar 2012	Posts:  24 Reputation:  1 User Rank: 1 - Seedling
What Clem said.  Clients lease because they don't want to pay a lot up front, otherwise they'd buy all the plants outright.  You'll have to estimate at how price sensitive they are and go from there--in any event, I wouldn't be asking for more than a month or so up front, plus installation.

Posted:  25 Apr 2013 01:19
Registered User Currently Offline Join Date: Jan 2011	Posts:  798 Reputation:  43 User Rank: 10 - Blossom
You might want to get first and last months' payments as a sort of "security deposit", similar to what an apartment owner would ask for from a new tenant.  It won't prevent problems, but it's that much more moolah in your pocket at the start, just in case.

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