full payment up front

[andy5405]

I always think that paying for the actual kitchen, when it's delivered and in your house, is fair enough ... as Andy says ... but that the fitting cost shouldn't be paid until after the kitchen is fitted.

I actually disagree with that. All my kitchens are built to order and can't be sent back. My customers actually pay me the full cost of the kitchen before I order it. I haven't had any objections to that to date and if I did I would simply move on to the next customer. I am a lot of things but I have no aspirations to be a bank.

[Majjie]

Well, if you can get enough customers to agree to that, Andy - good luck to you!

The problem is - in these difficult times - that some kitchen companies (and some kitchen fitters) are going bust. I'm sure you're absolutely not in that position - or anywhere near it - but how would a customer tell? I do credit checks on any new kitchen suppliers I work with - but most kitchen suppliers come out as a bad risk anyway! (They're mostly small businesses with very little capital.)

I've met a few customers who've lost their money in the past (due to the supplier going under) ... and there's no way you'd get them to pay anything more than a deposit up front, for their next kitchen ... unless you were willing to take the whole lot on a credit card.

Most of the cabinetmakers I work with take a 25 - 40% deposit, with the next payment on delivery (and a final payment on completion) ... and they're starting with planks of wood, that most certainly can't be sent back!

As a sort of independent but interested observer, I think there has to be an element of trust on both sides.

I, of course, get paid up front for my designs
But then I get paid peanuts ... compared to you lot!

Majjie

[andy5405]

It's the only way I'm prepared or actually able to work. I work with absolutely no borrowing facilities at all. I've been shafted by the banks for 25 years and 2-3 years ago I said enough is enough and have worked towards the situation I'm in now. I'm doing quite well but definitely don't have enough funds around to pay for a kitchen upfront. I have converted all my credit accounts to cash accounts over the last few years and never get that sinking feeling at the end of the month when all the bills come in. It was hard getting here but great to be here, I just wish I could get ahead enough to have a decent pot stashed away somewhere for a rainy day.

[Claydon Lad]

I have to agree with you there Andy, I do the same thing.
When you explain to the customer you pay for the kitchens on delivery or at the time of ordering, I haven't come accross any problems. When you're prepared to accept the installation costs on completion and only when the customer is satisfied - that is where the 'give and take' is accepted.
I generally do a % on order and the remainder % on completion. That way at least you'll have enough funds to start with, to buy all the materials you need plus a bit to get things rolling.

[Majjie]

Fair enough! If you've got no debt, then you're less likely to go bust anyway, I guess.

I think it would only work with a one-man band, though ... where you explain the situation personally. I don't think a kitchen company could get away with working like that.

Majjie

[andy5405]

I don't see the problem. As it happens I have just had an email from a potential customer asking to pay 50% now and 50% in a month. The straight answer will be no. The kitchen is £13k and I don't have £6.5k laying around. On to the next one. It has been the first this year.

[FUZZY BEAR]

I have my terms and conditions on all my paperwork including the quotes, so my Clints know right from the start that I require 35% deposit 50% on delivery of goods and the balance on satisfactory completion. Never had a problem with this until this week when a client demanded (not asked) that they only pay 10% deposit by credit card and the rest when the job was completed again by credit card at a cost to me of 3.4% = £291
sent them a polite email explaining the facts of life reference being a small business and not a charity they had already wanted to drop the price by £572 as well!!! even though I had gone through the quote with them explaining everything in detail and giving them a very good price (need the work)



customers who needs them!!!!!!!!!!!!!!!:Lol:

[KOVKID]

Up to about 2 years ago i funded all the costs but insisted on full payment on completion.
Now i put on my quotes 50% deposit--50% on completion not had any problems with this