Business question

[boxerpet]

Many taxidermists new and old depend on customer deposits to keep their businesses moving along smoothly. Deposits of 50 percent are usually required to get work under way.With increased labor and material expenses along with keeping employees and family happy I'd like a discussion on this subject.
Now the question? With today's economy and larger costs being incurred in order to complete more expensive projects are you able to get the deposits you need in order to keep your businesses running smoothly.
I am looking for your ideas on this subject.
PS:
All You taxidermists, professionals and new be's.
What is you guess or calibration on how much you should have or would need to start up a taxidermy studio in you first year.
 Is Six months or a years revenue enough to give yourself a chance to get your business operating.
Along with some good business sense.

[luv2bowhunt]

I haven't had any problems getting deposits from customers. They understand and see the sign that clearly states that no work will begin on their project until a deposit is made. There are a few exceptions that I make but not very often. I've found recently that a number of them are paying 75% or more up front. Maybe that makes pick up time not feel as bad for them. Not sure. Interested in what others have to say.

[ljones]

i have always asked for a 1/3 deposit up front   that way i have 2/3 coming at completion ,  keeps  me motivated to get the  work out ,i allow some people  to pay more deposit if they want to, but i hate getting full payment up front when its going to be 8 to 10 months before i do the work  ,  this has worked for me over 30 years now

[gab]

once you get your shop going where something is always going out the door deposits don't matter.i ask for deposits if they seem like they may have a hard time paying in full.there's always the chance someone will go broke or die before their stuff is done,which is where deposits are a good idea.

[michael p.]

I get only 40% deposit, I do not want any more and ranches where the owner pays the total bill (and I know them) I get zero deposit.

I'm like ljones, I like the motivation. I've got a ranch owner picking up tomorrow and there is no deposit on the work..... I LOVE those days!

The key for me is to work more than play during the peak season..... that way your deposit money goes to supplies..... but once they start getting picked up, watch out!  I'm rolling down the road!

[tazzymoto]

I get %30 on most game heads  and %50 on all others, No exceptions

[John C]

30-50% depends on the client. Have a lot of people making payments, layaway. Order supplies with the deposits,then pay bills and then f there is anything left its ours. then finally they will come to get the mounts.  We dont owe on anything except our farm and zero credit cards, So things work out.

[Dan & Becky Snyder]

We did the 50% down thing when we first opened & for a couple years thereafter.  However, in my opinion, it was too inconsistent of a cash flow. 

We've since went to getting 1/3 down - then about 6 weeks prior to mounting we send out a postcard asking for the second payment of 1/3 - the final 1/3 is due at pickup IN CASH.

On the postcard is states that no work will be done until the 2nd payment is received - completion time is 3 - 4 months after the 2nd payment is received.

It's worked great for us:
 - We know that we have 2/3 of the money here.
 - The customer isn't calling to "check" on their mount because they've had contact from us with the postcard.
 - The customer can also "plan/budget" their money & are always ready with the cash when we call for pickup.

PETS are the only mount we do differently - they pay 100% down!

[Kraig]

I think it depends on your total price. If you are charging $300 for a mount and spending $200 on supplies 50% is not enough IMO. To me every mount is a custom order piece and I want my out of pocket money to be covered upfront. Now with that said it really comes down to money management. You can't be spending money today that is needed for supplies tomorrow. I like the idea of 1/3 down and then sending the post card for another 1/3 but that is more labor and an inconvenience to me. For my out of state clients I do call them when I am ready to order the form and ask for final payment to be mailed. Once I receive this I mount the animal. That gives the check enough time to clear the bank and lets the client plan for the arrival of the mount.
I require 50% down but I will take payments and I have taken work with nothing down for a select few. I do not like getting 100% up front but I will not turn it down either.

[txoutdoors]

I think it depends on your total price. If you are charging $300 for a mount and spending $200 on supplies 50% is not enough IMO.

If your spending $200 on supplies and charging $300, your not charging enough!

[Kraig]

I think it depends on your total price. If you are charging $300 for a mount and spending $200 on supplies 50% is not enough IMO.

If your spending $200 on supplies and charging $300, your not charging enough!

I just used that as an example. It really doesn't matter what you charge. Your deposit should cover out of pocket expenses is all I'm saying here.

[mr.T aka mr. friendly]

Many taxidermists new and old depend on customer deposits to keep their businesses moving along smoothly.

Now the question? With today's economy and larger costs being incurred in order to complete more expensive projects are you able to get the deposits you need in order to keep your businesses running smoothly.
I am looking for your ideas on this subject.

Deposits should never be used to keep your business running smoothly. Deposits are for materials only. Profits are for running the business smoothly,,, if you make a profit. Using the deposit money for anything other than materials for that job, will lead to bad business.

[gab]

the most profitable taxidermists are the ones that set up in a different town every year,take big deposits,sell the capes and horns and skip out on their rent and disappear.100%profit margin!

[Hedhuntr]

I get 50% down and to be honest it doesn't matter one way or the other as people are still not picking up. Example, I did 9 deer mounts last week. I called everyone one up and out of the 9 one guy picked up and another dropped off more money towards the balance. That was 7 days ago WTH?

[Harry Whitehead]

If you are going to be successful in this business you better produce FINISHED mounts.  That is where your profit is.  Deposits to me is only a tool to make sure that the customer will come back and get his mount.  A lot of my customers I don't require a deposit because I KNOW that they will come as soon as I call them.  Most though, I require a deposit just to make sure that they are serious about getting their trophy mounted.  I hate deer season where all you get is deposits.  It is just a bandaid until you can start PRODUCING finished mounts again......