We’ve heard your requests and we’re excited to announce that Workiz now allows you to request a portion of your estimates upfront as a deposit. Getting deposits from clients is an essential part of your business; it helps reduce job cancellations and can make a big difference in terms of cash flow. Your client can even pay the deposit online!
Why Is It So Important?
1. It Reduces Your Risks:
As a professional service business, asking for an upfront deposit shows your clients that you literally mean business. Clients who invest money in a project are also investing themselves in the project, and are less likely to back out. In addition, the chances of getting the full payment from a client are much higher if they pay a deposit.
2. It Will Help You Maintain a Steady Cash Flow:
In order to run a successful service business, you have to have more money coming in than going out. Without money coming in, you won’t be able to pay for materials, employees, gas and other expenses. By asking for a fee upfront, you’re able to guarantee that you’ll be paid for a portion of the work, even if things don’t work out.
How Does It Work?
1. Choose the Deposit Amount:
Select if you would like the deposit type to be a specific dollar amount ($) OR percentage (%).
2. Send the Estimate with Your Deposit Request:
Before sending your estimate, make sure to mark the online payment option.
3. Get Paid Online:
Your clients will then be able to pay the deposit online, right from the estimate!
How Much Should You Charge?
That’s completely up to you. It definitely depends on the size of the project and how long term it is, but regardless, always make sure that the deposit covers your initial costs. Some service businesses charge a deposit of 20% and others charge 50%. You might also need to compromise in certain situations. Clients could potentially ask you to reduce the deposit, and then you’ll need to decide whether it’s best to stand your ground or make an exception.
How Can You Make Your Own Deposit Request?
Want To See How Easy It Is To Set Up? Find Out Here.
At Workiz, we are always committed to improving and finding ways to help service businesses grow and succeed.
Have any comments, questions or suggestions for improvement? We want your input! Reach out to our customer success team