asking for deposit or advance payment for services

@Cutie18f (9551)
Philippines
January 27, 2013 3:32pm CST
This is what I do. Whenever a client wants her kid to be tutored I would always require some deposit or advance payment from which the amount per session would be deducted. Then when it is consumed, they should make another deposit again. I had made this a rule because there are people who just stop going and fail to pay you for the services. I hate going after them to collect the money and I had a very bad experience on this. That is why now it is a rule for me for all my clients to give advance payment, but I have a friend whose child could not read and who is tutoring with me. At first she was good about making deposit but later on she would ask to make the payment later. I just allowed her for she is a friend. But this habit of hers had become more frequent and lately, she had failed to make true her promise of making payment. I am not happy about this. If her child will come tomorrow, that's her schedule, I will already tell her that I do not have the time anymore to tutor her child because I am already very busy with my next event (which is true). How about you? Do your clients give deposit or do you require them to deposit money before you give your service?
1 person likes this
4 responses
@mariaperalta (19073)
• Mexico
27 Jan 13
did you make this clear to them, when they signed up?
• Canada
27 Jan 13
I have never asked for any deposit upfront, but maybe I would if I had that bad experience with people you have. Prepaid services is probably a good idea in particular when the the service itself is well established. Just IMHO
@Cutie18f (9551)
• Philippines
28 Jan 13
Yes, I always tell them when they come and ask to be scheduled for tutorial.
• Mexico
28 Jan 13
Id say it depends on who it is, and how big the job or work is. I ask for a deposit here.. on any job over 50.00....
• Philippines
1 Feb 13
I think it would be rude if you just stop tutoring because of an unreleased payment. Though business, especially service ones, are on a render-pay cycle, their are times that our customers would fail to pay on scheduled dates (even on re-scheduled ones). The trick is to talk to the customer and explain to him/her your side why you need the payment. Also, try to inquire for the cause why payments are not given on time (if it's OK with him/her). In your case, your customer is also a friend so you can settle this within yourselves. Not rendering of service due to non-payment should be the last of your options. Hope this helps.
@Cutie18f (9551)
• Philippines
1 Feb 13
Thanks Wala for that sane advise. I have actually lost my patience with this client/friend because she had been amiss many times.
@Carolyn63 (1403)
• United States
28 Jan 13
We have a small auto repair shop. The only time we ask for an advance payment is when the parts have to be special ordered. The reason for this is that sometimes the items are non refundable and sometimes there is a re-stocking fee. I have a part from 3 years ago sitting on my shelf. The customer made an appointment to bring the car in for repairs after we had already checked the car over and given an estimate. The place we ordered the part from was aware that the customer may change their mind. We discussed this because it was a holiday weekend and we wanted to ensure we could return the part if the customer didn't show up. They agreed but when push came to shove they renigged. This part was over $300 out of our pocket. I also have two upper strut mounts sitting on the counter. The customer paid some down in this case, of their own choice. We had to go through a specialty shop whom ordered the part from their vendor and it can not be returned. The customer came in and paid down a little more. She didn't want the work done until everything was paid for. Then a few days later she came in with a sob story. My husband felt bad for her, and because she had been doing as promised, gave her the money back. It's been a year. She still calls about once every 3 months and asks again, how much for the parts and repairs. Then she called one day and asked just about the parts as she had found someone to do the repairs for less. At this point we would joyously sell her the parts at cost plus tax. She won't be able to purchase these parts anywhere else for less. Two weeks ago they come by and ask yet again, how much for everything. My husband told them he would sell them the part, but he is not interested in doing the repairs at this point. He just lost his father and here they come with their nonsense. Nope. So, for special order items we do ask for the amount of the parts up front. For expensive parts, we again ask that. We don't ask for money up front for labor. We don't charge for estimates. But I can't throw away money on parts that I may never use. In your case, I don't see how it's much different than parents paying for day care which is paid up front. Yet again, baby sitters don't get paid up front. One request for aid and you being generous is sweet. Taking advantage is a different ball game. A freinds times is no less valuable than anyone elses. You being the freind, and being taken advantage of.
@Cutie18f (9551)
• Philippines
28 Jan 13
Hi Carolyn! Thanks for taking the time to really delve into the issue. As for me, I only have service, plus the office I am renting and the air-con. It is really necessary to require deposit because not everyone is honest, I have learned that.
@sishy7 (27169)
• Australia
28 Jan 13
I have to do that for my son's orthodontist. The treatment could take as long as two years, and the doctor asked for 50% deposit first before he started. He sees my son once a month, and each time I can pay the installment for the rest of the fees. I know some handyman who does that here too. Especially if it is a big job which requires several days to finish. He would ask for some deposit to start the job, then collect the rest when the job is finished. Sometimes friends are worse in paying promptly than total strangers.
@Cutie18f (9551)
• Philippines
28 Jan 13
That is true Sis. It is abusing the situation already and I am not buying it any longer. I am not used to that kind of arrangement. Tomorrow will be the last that I will see her child. Goodbye.
1 person likes this