I run a small furniture restoration business. About four years ago a guy brought in a mid-century walnut credenza. We agreed on a price of $850. He said he'd pay after seeing the final result. I trusted him and started work. When I called to say it was ready, he stopped responding. Two weeks later a different guy called asking about 'his' credenza. Turns out the original customer had sold it to him as a 'fully restored' piece and taken a deposit from him. I was out the $850 plus materials. Now my rule is simple: 50% upfront, 50% on delivery. No exceptions. I still feel uneasy when I turn away a job, but that experience was a hard lesson.
lessons learned
The customer who taught me never to start work without a deposit
Did you ever hear from the original customer again? That's the part that would stick with me.
I do auto detailing and I've been burned twice. The first time was a referr al from a friend, so I gave him a break on the deposit. Big mistake. Now I don't even put on gloves without a deposit. People tell you it's unprofessional to ask, but they aren't the ones eating the cost of materials when soeone ghosts.
I think there's a middle ground. For long-term repeat customers I've stopped asking for deposits and it's been fine. For new ones I always do. It's about risk.
How long did it take you to actually enforce the rule without feeling like you were losing business? I'm new to freelancing and I still worry that asking for money upfront will scare off the good clients.
About a year. The first few months I lost maybe two jobs, but one of those guys later came back and paid the deposit without complaint. The ones who push back hardest on a deposit are usually the same ones who push back on everything else.
Filing in small claims over an $850 job is rarely worth the time. I spent thre months chasing a $1,200 invoice a few years ago. I won and still haven't seen a cent. Deposits are the cheaper lesson.
If a client refuses a deposit, that's information. It tells you what the rest of the relationship will look like. I learned that the hard way too.
Do you have a written contract? Even a one-page agreement with deposit terms helps. I had a customer dispute the 50% because it was only verbal. After that I started using a simple contract every time.
The second guy in your story is the real problem. He lost money because he paid a deposit on something he hadn't seen finished. Funny how the deposit protects him too ngl.
I hadn't thought about it that way. The deposit isn't just protecting me, it's a fair signal to the customer that both parties are committed.