Customers keep cancelling on me

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Concerning deposits, do they often scare people away? Can they do more harm than good? I have never taken one in the past. People can be a little skeptical of them. Maybe I should give them a shot though.

If I have a good feeling about someone I never try to get a deposit. If I have a feeling they are going to try and cancel I go for a deposit. In my service area I am very well known so as long as I stay in that area it is not a matter of skepticism on the clients part but more of a I don't want to give this company a deposit because I might want to cancel because that's the kind of jackrag I am sort of deal.
 
I don't think asking for a deposit on residential job is a good idea. It could scare off some people, maybe cost more then it saves you. Having them sign a contract though should be a giving. Even if you didn't pursue it in court, just knowing you could keeps some people honest. A signed work order will do it.
Take care Mike.
 
I don't think asking for a deposit on residential job is a good idea.

Maybe where you live. Around here if you are weak it would be a terrible idea. They will run for the hills. But if you are obviously strong, your reputation is excellent, you are well known and you feel like the client may be less than serious then ask for a deposit. For me it works. Same thing at the bank..if you are weak don't rock the boat. It will usually scare them off any deal you might have lucked into to. I'm not afraid to ask for better deals...lower rate, better terms, etc. They know damn well I can borrow money somewhere else. If your track record is right and you are not some unheard of you shouldn't have to worry about scaring any legitimate deal off.
 
The trick is knowing your area, well. If I get a larger, non-take-down gig, from a new client, and I want to make sure I actually do it, I make room in my schedule to do it the next day. In Austin, there are tons of tree guys who will steal gigs by low-balling to an obscene price. It happens over and over, but you learn to either get the job done the next day, or two, or take your chances. I do have new customers sign my contract the minute they accept my price. I have a minimal cancellation fee, $100, but I never have collected it, as the few folks who canceled on me told me sob stories that worked. The larger gigs are usually take-downs, and in my city the permit rules are very strict. By letting the client know that I will file the permit, I can lock up a job and that gives me some room to not sweat.
 
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Yeah, judging by your sig, I guess that whole college thing didn't work out so well.. huh? :msp_smile:

Actually, I am/was very strong academically. A couple of corporate jobs made me realize that money isn't everything and I am not cut out to be the Company Guy. Sadly, I had insufficient experience to realize that it is impossible to make a decent living running a tree service in this small market. But now, you might say that the Truth has become self evident.
 
within the contract give them a period in which to cancel usually three days & if they cancel after that have written into the contract a cancellation fee.



LXT...
 
In Austin, there are tons of tree guys who will steal gigs by low-balling to an obscene price.

I think that is state wide. I don't know you but I know a couple tree guys in Austin and in talking with one the other day he mentioned some of the low-balling going on down there. Some characters are just giving work away.
 

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