Vicente Wolf

Name: Alice B
City: phoenix
State: az
Country: usa

Comment:
Dear Vicente,
I greatly admire your work as a designer and as a mentor to emerging designers. The fact that you have this blog and are so willing to assist others and offer advice is truly gracious and very appreciated.

I recently branched away from the firm I had been working with for the past few years and have started my own business. All of the fabrics and furnishings are selected and I am just about ready to start placing orders for a specific job. Most of the showrooms/vendors require a 50% deposit to place the order. My question to you is this: What percentage of the total cost do you have your client pay you in advance of placing an order and making that deposit?

If I only invoice my client for that 50% deposit, what’s to say they will pay me the remaining 50% later? I can’t imagine my clients doing that, but I don’t want to run on good faith alone. I can’t afford to pay the 50% balance if a client does default, and I don’t want my reputation or credit tarnished because of that. Would you (and your readers) consider it normal or outrageous if a designer asked for a 100% payment from the client in advance? Is there a better percentage than 100% that you’d recommend using?

Many thanks,
Alice

Vicente Responds:

Alice, I bill 50% deposit on long lead items plus 50% of my commission. That’s payable prior to delivery. Items that are for immediate delivery I bill in full like fixtures, fabrics and things that are going to be immediately available. I don’t think that most people in general will default on the balance, but if you feel that the person you’re dealing with may (due to personality or finances) bill in full. I find that most persons don’t like to give up the full amount and then wait 10 weeks for an item. However, if you do manage to get the full price at the beginning, it’s up to you and your bookkeeping to not touch that money if you’re holding it until delivery.