Common to pay 50% upfront for windows?

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Mark
Posts: 67
Joined: Thu Oct 07, 2004 9:26 am
Location: Atlanta

Common to pay 50% upfront for windows?

#1 Post by Mark »

I'm about to sign a contract for vinyl replacement windows for my house. The company, which is a big company here in town, says that they want 50% upfront. Is this a common thing, or should I just tell the company that I will sign a contract, but no money up front? Is this negotiable, a ploy on their part, or a fine way to do business?

I know that all replacement windows are custom-made (to some extent) but I wonder if the dealers have to pay the money up front to the manufacturer before they start building them, or do they pay like 30 days after delivery?

Thank you

FenEx
Posts: 553
Joined: Thu Oct 07, 2004 11:18 am
Location: Illinois

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#2 Post by FenEx »

A dealer asking for a deposit on custom windows is smart business... 50% is not uncommon but 30% seems to be the average. Keep in mind that whatever their billing arrangement is with their manufacturer... they are responsible for the cost of "your" non-returnable windows typically within 24-48 hours of when the order is placed... not when you receive them.

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Randy
Posts: 1209
Joined: Fri Oct 08, 2004 7:26 am
Location: Houston, TX

deposit

#3 Post by Randy »

My company has been in business for over 15 years now, and we require a 50% deposit before we will order windows. The bottom line is that if you cancel or, God forbid, are killed in an accident, the window dealer will be stuck with the windows.

If the company is reputable, the deposit should not be a big issue.

E-Z
Posts: 104
Joined: Thu Oct 07, 2004 12:13 pm
Location: North San Francisco Bay Area

#4 Post by E-Z »

I too end up asking for 50 % deposit on the windows.

In California the law is that you can only ask for a 10 % deposit when signing up a contract, then you can schedule payments as work progresses. I collect 10 % at signing, then after their 3 day cancellation period passes we collect 40 % as our blueprinting and sending out to manufacture their custom windows constitutes commencement of work.

E-z
E-z
E-z Windows

Guy
Posts: 552
Joined: Thu Oct 07, 2004 12:41 pm
Location: Minnesota

#5 Post by Guy »

We get 50% up front also. I'd get 100% if I could! There is nothing harder for any small business than collecting final payments. We see it everyday. The customer had it to start with but saw this great deal on a big screen tv they had to have! We as business owners really don't know you any better than you do us. Giving up 50% to get your windows is trusting us to keep our end of the deal. Waiting until we're done with the job to get the other 50% is our way of trusting you! So it's a split down the middle in trust. I guess it's the fair way to go. THe DIY stores like Home Depot get 100% up front. It's all about the trust!!

Guy

swerve
Posts: 5
Joined: Thu Oct 21, 2004 9:46 am

#6 Post by swerve »

I put 0% down at signing, 25% at the time they arrive for the actual measuring of the windows and will pay the remaining 75% upon completion. I deal with contractors every day. Beware putting too much down up front - less motivation on the contractors part and less leverage on your behalf.

Guy
Posts: 552
Joined: Thu Oct 07, 2004 12:41 pm
Location: Minnesota

#7 Post by Guy »

Swearve, I'll bet you've never been scammed for 15K - 20K either. There are many ways for the homeowner to scam installation companies. Obviously you've never had a contractor BK on you, or a homeowner write a bum check. Then they file BK. I've lost over 20K in the last five years from being Mr. Nice Guy. Now my Insurance Company tells me what I'm going to do. So if I want insurance I play that game. If you deal with contractors all day long then you know the rule of thumb is usually 50% down. It's all perfectly legal and by the book. I don't know of many contractors here in MN that don't require at least 50% down. Ounce you get burned and loose money. It's not hard to get money down. MN has laws that will destroy contractors who bail with homeowners money. So it's not recommended here.

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