Chicken & Egg....

[John G]

For that qty money upfront - definitely. Pointless being stuck with 50 mugs you cannot sell!

[pitkin2020]

Quote, if agreed 50%, design work then gets started, once approved production starts, remaining 50% on delivery. Anything under £50 whole payment upfront.

If the customer (apart from big businesses) don't even want to pay 50% upfront then you have more chance of them not paying when they have the product, paying upfront even a percentage shows commitment on their part and as you will end up with custom unsaleable goods you should always cover your costs at the very least. As I always say Tesco won't let me pay in 30 days and they have more money than I do!! If you want credit go to the bank.

Large businesses tend to be a bit different but even then I would usually push for 50% upfront to atleast cover material costs if they decide to change their mind halfway through.

[John G]

I used to offer 50%, got shafted, so now its 100% for the 1st 3 orders - credit maybe available after this. As you say, try getting 30 days credit on a large order from Tesco - not a chance.

[Lee]

Wse words, sounds good!

[JSR]

I know two people who started up their own businesses and they offered 30 days credit to "reliable" clients. In one case it was a sizeable order, and in the other it was a recurring job (for the council). 30 days became 60 days, became 90 days. Both had to shut up shop because they couldn't hold out long enough for the bills to be paid.

That taught me a very clear lesson. Yes, it's harsh, but if the customer isn't prepared to pay on day one, then they're not going to be keen to pay on day 30. And don't think it won't happen. We live in an environment now in which businesses purposefully delay payment until the absolute last moment and if they can put off paying for another month, they'll do it. They don't care about anyone other than themselves, so don't kid yourself that you'll be any different.

Once you've done the work, you have no leverage. You only have leverage before you do the work.

[pitkin2020]

I know two people who started up their own businesses and they offered 30 days credit to "reliable" clients. In one case it was a sizeable order, and in the other it was a recurring job (for the council). 30 days became 60 days, became 90 days. Both had to shut up shop because they couldn't hold out long enough for the bills to be paid.

That taught me a very clear lesson. Yes, it's harsh, but if the customer isn't prepared to pay on day one, then they're not going to be keen to pay on day 30. And don't think it won't happen. We live in an environment now in which businesses purposefully delay payment until the absolute last moment and if they can put off paying for another month, they'll do it. They don't care about anyone other than themselves, so don't kid yourself that you'll be any different.

Once you've done the work, you have no leverage. You only have leverage before you do the work.

Totally agree, atleast with signage I can just go and remove it lol

[mrs maggot]

"50% upon order - to cover costs"

be very careful that it never slips that this is done so you have covered your costs !! ( i have seen it done and in writing on a competitors quote, which was a reason i got the job)

normally once they know you are a smaller business, they will expect you to want the money sharpish, anyway - if they pay up the first time they order, keep the payment terms the same its amazing how often a good payer can become a reluctant payer

[JSR]

"50% upon order - to cover costs"

be very careful that it never slips that this is done so you have covered your costs !! ( i have seen it done and in writing on a competitors quote, which was a reason i got the job)

Is everyone except me really making 50% profit on everything they do? Blimey! I wish I was...

keep the payment terms the same its amazing how often a good payer can become a reluctant payer

I've experienced this a little bit myself. With a regular customer I may not wait for payment to clear (for instance if they've used cheque or PayPal echeck) - 9 times out of 10 everything's fine, but that 1 time it isn't is like drawing blood from a stone.

Had that with an order recently in which an echeck bounced. I thought I was doing the customer a good turn to get the order out quickly - they are a regular, after all. It took 3-4 weeks to finally get the money from them - and that was only because they wanted to place another order, so I could finally say "no more work until you pay". Without the leverage, I would have had to kiss goodbye to that money and no mistake - regular customer or no regular customer.

[mrs maggot]

no belive me JSR, i would love to make 50% pure profit on everything no way am i there

[Lee]

using a mug as an example, cost about £2.50 - £3.00, selling between £5.00 - £6.00 is 100% gross..... less your costs etc, shouldbt be too much under 50% should it?