What's a fair deposit??

[Crosslander]

Just a question for My Swag members.... what is a fair deposit to have to pay to get a camper made? I am looking at a custom made and they want a 50% deposit up front - wait time will be 8-10 weeks. I would have thought 30% would have been fairer??

Can I ask what is the industry norm?? What do the pro camper trailer mobs charge... especially those that put yopu on a 3 month wait list or similar??

Cheers.

Mark

[Silvo]

I paid 30% for the CC

[dno]

Sounds like there covering the materiel's, probably a hard call on a custom job. If they build what you want and its no good who's fault is it, or is it a pretty straight forward custom job.

[Geoffwin]

IMO it would depend on the size of the order and the unique ness of the finished product.

If specific material has to be ordered in or specialised / expensive skills or material is required the builder might have to outlay more upfront themselves. They would also be making sure they are covered if the final payment falls through and they are left with something they cannot sell (or sell at a loss).

Basically I guess it is a matter of negotiation.

Geoff

[Humbolt]

These guys beat me to it
I was going to say..Yeah 50% sounds a bit rough but it could be just a smaller company covering some costs.
If they are reputable though.........maybe 30% now and another 20% in 4 weeks??

[morgue]

IMO it would depend on the size of the order and the unique ness of the finished product.

If specific material has to be ordered in or specialised / expensive skills or material is required the builder might have to outlay more upfront themselves. They would also be making sure they are covered if the final payment falls through and they are left with something they cannot sell (or sell at a loss).

Basically I guess it is a matter of negotiation.

Geoff

Agreed, ask for more details why the builder wants 50% up front, then if the details of their explaination check out...
Now if it is nothing special with materials, design and such, 15% to 20% should be reasonable, with periodical payments when certain markers in construction are met.

[Crosslander]

Yes - understand they are covering themselves.... the job is nothing too special in terms of materials etc. Would think it would be pretty easy to sell if it fell through. thought 50% was a bit rich but wasnt sure. Will try to renegotiate.

Thanks guys

[tinkera]

HI you,ll find they will be using the deposit for cash flow if they can get 50% out of you they will try you on but it,s pretty rich 20-30 tops if yours falls over they will just sell it to the next guy even at 20-30 they will come out in front if they have to sit on it.Tinkera.

[2 Brutal]

Nothing wrong with 50% deposit, it is up to the business as to what is required, he is the 1 outlaying all the $$ during the build on materials. It also gives the builder good security on your order that you will go through with it, you'd be surprised how many orders fall over mid build due to lack of finance. Saying, too bad if it falls over, he will sell it to the next bloke is not a good enough reason on the buyers part to not hand over a decent deposit.

[jaycamrie]

We are looking at campers , and the guys at kk, camprite and robust all told us that $4000 to $5000  would get us on the production line that is on a $45000 to $50000 camper

[BigJules]

I think 30% is a reasonable figure, but if it gets the work started and keeps it going, negotiate progress payments. If they don't look solid enough to offer 50% to, walk away.

[Geoffwin]

We are looking at campers , and the guys at kk, camprite and robust all told us that $4000 to $5000  would get us on the production line that is on a $45000 to $50000 camper

The Eagle was $1000.

Stuff off a production line I would expect to be reasonab,y small as they can (probably) quite easily sell it if it all falls over. One off or specific orders can be a bit more difficult.

Progress payments might be an option if money is a bit tight.

Unfortunately businesses fall over as well and if they are holding all your money - well you might not get anything back.

Bit of a 2 way street but if you know them should be fne.

Any reason it is an 8 - 10 week build?

[flamingo]

  Gday Mate   We paid 2000$  deposit on the Jayco. I expect larger companies would be able to cover expences better than small ones hey..  50% does sound harsh but if its a smallish company they prob cant afford to have a small deposit.  :cheers:Phil

[singo-26]

The business is probably looking at the deposit as a commitment from you, particurlaly if they are building something different/special. It's unfortunate in business today you cannot accept someones word, and have to ask for a large deposit to build their commitment and cover your costs if they break their word.

[Jon]

Department of fair trading.
Check with them for what is actually legal.

Or alternatively a construction contract which lays out payments and progress/timelines.
If they have an issue, remember it is YOUR money, take your business elsewhere.

Not meaning to be a hard a%se but fleet of foot operators are all too common now.

[Crosslander]

Any reason it is an 8 - 10 week build?

Just a small operator who is a friend of a friend of a friend..... he has a few other jobs in front of me.

I thought 50% was a bit rich personally and most comments on here seem to support that.

[Bird]

Its his shop, his rules.

What does it matter how much deposit it is if your buying it??  1% 50% or 75% or even 100%?  As said, hes probably had 50 ordered and cancelled over the years.

Department of fair trading? Theres a rule to say how much deposit you can ask for?? Your kidding right? No wonder business are giving up and closing the doors.

[BigDougie]

With you Lost, sorry I didn't ask for 50 up front when my business was running!

[eatMYdust]

maybe a smaller deposit can be achieved if you can supply peace of mind for example if you are borrowing threw finance have the finance company contact the seller to confirm payment on completion just a thought but i agree it is up to the seller how much they ask for it is there business after all

[2 Brutal]

It is suprising how many people back out of deals when only a small deposit is paid, they sort of don't care if they lose their few hundred $$ deposit if they pull out, wheras as a more substantial deposit means they won't back out. Or when you ask for a deposit and the excuses start coming. Small business don't have a bottomless bank account that can afford to prop up deals that might fall over and have insufficient deposits to cover them.
We usually only as for small deposits on goods we order and a lot of the time people will offer to pay more than we ask. I had a customer only a couple of weeks ago pay me a $5k deposit when I only ask for a few hundred.

[singo-26]

I'm neither with or against the deposit size. Fleet of foot businesses are around but I would have to say fleet of foot customers are very common aswell. In my business I took poeple at their word and am owed nealy $5k from the 2010 fin year, in a small business with less than $20k turnover. One of these jobs was an urgent job, done by me on a Saturday 14 months ago, with an excavator and $1000 worth of parts. (He bloke was amazed after 12 months when I arrived to pull the job back apart. Do I ask for a deposit on most jobs now,   Absotutely.

[Robbo]

I would'nt have a problem with a 50% deposit if i knew the builder i was dealing and their reputation and considered my deposit money to be safe. If, however, you have any concerns then negotiate say a 20% deposit up front with regular progress payments throughout the build and a final payment on completion. I'm sure this would'nt be an unrealistic request and would probably be received favourably as it puts a no risk on both parties. Good luck with your new C/T

[tinkera]

Robbo x2 We ask for 10-20 on our machine builds with progress payments along the way,final balance when all parties are happy payment before shipment.I think a firm 50% would make a few people keep walking but I guess this guy is happy to loose a few and get a good nights sleep.If your still keen on his unit try for progress payments worth a try. Tinkera.

[jetcrew]

Why not ask for a detailed quote outlining the costs of materials that will be required for YOUR build and offer to cover that as the deposit.

This way if you pull out he has scored materials for free, or if he stuffs you around and after 4 mths your still waiting for your job you send a letter of demand for the materials you paid for.

Everyone needs to be covered so a mutal arangment should always be avail to be reached.

If the vendor does not want to take that then i would walk personally. Your deposit should only be relevant to your job not to be used for other jobs or as cashflow to fund other things.

Personally i like the trust account situation that is used with real estate.

If you have concearns in the back of your mind ..listen to them i say.

Good luck

jetcrew

[graham]

 Iwill run with Lost if i were to place a order with a manufacturer of fine metal/canvas work , i would hope that i had talked to said person ,and talked about what i would like  . get a final cost, and then pay anywhere between 10 -100% of costs . i say that because you should have a contract for the build, and you and the builder  will figure out the the start cost and the final cost      (and i must say that i work in the construction ind , i do not look for outside work, but if i do i would like 2/3 of the total costs up front , before i order it may sound harsh  but i have the burn marks off other deals    CHEERS  Graham