50% or paid in full

[Micah]

As a dealer with several stores and Many years of experiance, I am asking for an honest opion from both customers and other spa dealers.
Last week when I purchased some new bedroom furniture I asked the salesman if I could put half down.  He kindly informed me that payment was due in full. No other options were availible.  
Last year when I purchased a new T.V. the store also required fayment in full at the time of purchase even though the delivery was over a week away.
Most of my customers at our store pay in full when they order the spa. There are always some that want to put half down or sometimes even pay only $1000.00 down and feel the should'nt pay the rest untill after the job is complete.  Am I being unreasonable to ask for payment at the time of purchase.  Is there another industry that let's you buy things and payfor it after it has been delivered.
I thank you all in advance for what I'm sure will be some interesting replies.

[wmccall]

My dealer asked and recieved 10% down.  I just put 10% down on bathroom remodeling.  In both cases the remainder was expected on installation.

I also just bought a big screen TV with a big recognized retailer and paid 100% of it.


With the first two, the dealer would have only been out some labor, everything else materials wise could be used somewhere else.   If you are a dealer that has 1 or 2 tubs on your floor and limited storage, I could see where it would be a problem for you to special order a tub for a customer.  But if I'm a hot tub customer, I'm probably going to do business with someone who has been around awhile so I know I'm not going to lose that 10%.  

Now that is ironic because my dealer is now under investigation for fraud and dozens of people have totally lost their 100% deposits averaging $7-9K

In my hot tub and remodeling purchases I went with someone who could afford not getting their 90% for a month. I have to assume that cost is built into the price I paid.

[East_TX_Spa]

Most of our customers pay in full.  We usually request 20% down to hold a spa with the balance due at delivery or the next day at the latest.  If they don't come in and pay, we'll go back and pick it up.  We've never had to yet.  Heck, I even took a five-dollar bill as a deposit before as "good faith" money.

Terminator  

[Chas]

This is a great question.

Normally, I get paid in full the day the thing gets written up. I am especially interested in getting paid up front if the customer uses a credit card. Keep in mind: most card purchases cost the dealer about 1.65% or more.

My policy is: $300 or so will hold a price (as long as I can hold it)
Half down will order a spa.
Full payment the day before or at the latest the day of the delivery. We have a portable credit card machine to make it easy to get paid while standing at the customer's house.

We will do what it takes to help the customer, including financing of course, but those are my preferences above.

[Micah]

 Heck, I even took a five-dollar bill as a deposit before as "good faith" money.

Terminator  

And I thought taking a 20 dollar bill was bad but you got me beat there

[tony]

When I ordered my spa, it was 50% down and remainder at delivery.

In todays world, I wouldn't buy a large ticket item without putting it on a credit card...just for the added protection.

[Chris_H]

Chas,

What happens when a customer finances the spa?  Typically the dealer cannot get paid until the spa is delivered.

Thanks,

Chris

[marks]

I put half down when I ordered my Spa and was going to pay the rest at delivery.  The problem was, I was on vacation, which the dealer knew.  He had no problem holing it for two weeks and did not ask for payment then.  I paid him though because I thought it was the right thing to do since it was my fault he could not deliver it.

[Chas]

Chas,
What happens when a customer finances the spa?  Typically the dealer cannot get paid until the spa is delivered.
Chris

Zactly. In that case, we get the application and contract signed and all approved in advance, and then we fax the paperwork to American General when the delivery crew gets back. They usually have a check in my hand that day or the next.

[hymbaw]

There isn't a sale until ALL of the services are rendered, including delivery.

We will hold a particular spa for 90 days with a $500 deposit. The balance due at time of delivery.

My warehouse manager will call the customer the day before delivery and ask how they are going to pay the balance. If they want it on a credit card he will take the cc# over the phone, run it, then have them sign on delivery. If they want to pay with a check he will collect that BEFORE he takes the spa off the trailer. Financed tubs would have all the paperwork done at the point of sale.

They vast majority of customers have a check waiting at delivery. I do think you will gain some customers if you accept down payments or deposits. There have been times when I coaxed a deposit out of a customer to "hold a price" with the understanding that they are still in the shopping stage. That deposit gives them ownership in your brand and they will be defensive of your product while other dealers try to bash it.
I think that we have all learned on this board that people will get very defensive of the decisions that they make

[Guzz]

I will order a spa with a $500 deposit, if they cancel I will give a full refund, and I have no problem selling an instock spa.

[Chas]

they will be defensive of your product while other dealers try to bash it.
 I think that we have all learned on this board that people will get very defensive of the decisions that they make

Boy howdy is that true or what!?

[Tatooed_Lady]

My HS dealer would take a couple hundred down to hold one of their older stock tubs.....the '04 J375, or the refurbished tubs. However, on one they have to order, they ask for 1/2 down, and the other half upon delivery.

[kysteelerja]

well i hope this is not a mistake but i just paid for my spa in full over the phone. Have not set up a date for delivery. Got to put in the service an pour a little more concrete of which the dealer is very much aware. Hope i didn't goof in that department. Dealer asked for 2G down and we paid in full.  and so the fun begins.....

[Tatooed_Lady]

if it's a reputable dealer, I wouldn't worry about it....over the phone, I assume credit card? There's your protection....do your thing, check later in person with them if you feel the need, and enjoy!