charging up front

[davidd]

Typically when we do a first engagement with a client we charge them a % up front, usually 30%. This has never been an issue in the past.

We have just been asked by a new client to complete a sizable project but when I mentioned 30% up front they claimed that was very unreasonable..

This is software development.

What do other folks do?

What would you consider reasonable?

TIA

D

[Plotloss]

20% with order
75% 14 days before kit delivery
5% + variations on completition.

Middle stage payment used to be 60% but this was upped as my competitors follow the above payment model.

None of my clients have issue with this, if they do, they probably arent worth dealing with.

[joewilliams]

I'd consider 30% reasonable. They're not going to get a better rate elsewhere.

Edited to add: if they're baulking at 30%, I'd worry if they've got the funds to pay for the project when it's complete.

Edited by joewilliams on Friday 19th October 13:24

[JustinP1]

Plotloss said:

20% with order
75% 14 days before kit delivery
5% + variations on completition.

Middle stage payment used to be 60% but this was upped as my competitors follow the above payment model.

None of my clients have issue with this, if they do, they probably arent worth dealing with.

Agreed with this.

Maybe they don't have the 30% at the moment? There is at least a chance... if that is the case will they be around to give you the last 70%?

Or... Lets say they were still yet undecided on the project, or if they could pay for it. If you start work with no 'deposit' as such there is nothing stopping them calling of the work part way through. It would be then your responsibility to prove the cost of the work done so far etc, and chase them through the courts for payment.

At least if you have the 30% down, then this mitigates some of the chance of this, as a new customer then this is more than reasonable. The other option you could put forward 'Art of War' style is to put the shoe on their foot and propose a reasonable deposit.

If they *are* holding out the possibility of making you chase, then they wont want to reveal this position - and if they do you can run a mile.

[Gordon Brown]

I think my web developer asked for 20% upfront the first time, but I notice his T&C sayu 100% with sites of 'adult content'

[davidd]

Sorted Thankyou.

Not quite 30% but very good terms and second payment pretty soon afterwards.

The project is something I suspect a fair few of you might use when it is live so I'll post details when we finish.

Thats two things we are working on which will be of interest to the PH clan

D

[Silent1]

davidd said:

Sorted Thankyou.

Not quite 30% but very good terms and second payment pretty soon afterwards.

The project is something I suspect a fair few of you might use when it is live so I'll post details when we finish.

Thats two things we are working on which will be of interest to the PH clan

D

Cool, keep us updated

O/T i see you're a cambridge person as well