For any job with significant material costs or a long timeline, taking a deposit is smart business — it protects your cashflow, covers your upfront outlay, and confirms the customer is serious. For small, quick jobs it’s often unnecessary, but the bigger the job, the stronger the case.
Why deposits matter
When you buy parts for a big install, you’re funding the customer’s job out of your own pocket until you get paid. If that job runs weeks and the customer is slow to pay at the end, you’re carrying real money for a long time. A deposit shifts that: the customer funds the materials, not you. It also filters out time-wasters — someone willing to put money down is someone serious about the job.
When to take one
Take a deposit when the job has substantial material costs, when it runs over a longer period, or when you’re taking on a new customer you haven’t worked with before. For a quick service call, a deposit is usually more hassle than it’s worth. Use judgement scaled to the size and risk of the job.
How much to ask for
A deposit large enough to cover your material costs and a portion of your labour is a common, fair starting point. The exact figure depends on the job — the principle is that you shouldn’t be significantly out of pocket at any stage of the work.
Deposits plus progress payments
On large jobs, a deposit is just the first stage. Structuring the payments — deposit up front, a progress claim at a milestone, the balance on completion — means the money comes in as the work does, and you’re never carrying the whole job. This is standard practice on bigger work for good reason.
Making deposits painless
The friction with deposits is collecting them. Done well, it’s part of the quote acceptance: the customer accepts online, pays the deposit in the same flow, and the job only locks into your schedule once it clears. TradieO handles deposits and staged payments this way — protecting your cashflow without an awkward money conversation.
Frequently asked questions
Will asking for a deposit put customers off?
Serious customers expect it on larger jobs — it’s normal practice. Anyone put off by a reasonable deposit on a big job may have been a payment risk anyway.
Is a deposit refundable?
That depends on your terms. Make your deposit and cancellation terms clear on the quote so there’s no confusion.
Should I take a deposit from repeat customers?
Use judgement. Established, reliable customers may not need one on standard jobs; large jobs might still warrant it regardless.