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When to receive payment

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  #1  
Old 05-12-2007, 09:07 AM
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omytfineo1 omytfineo1 is offline
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When to receive payment

Hello all,

Trying to come up with a business workflow as to how and when the customer will pay for their photo restoration services. I will be setting up a business online. I see some sites accept full payment before the service begins.

What if the customer fears of paying full price and never receiving the product? I try to tell myself that if the customer is familiar with ecommerce already, the fear would be minimal.

What about 75% payment first, then the balance when the order has finished? (of course, they will receive the goods after the final payment has been made. This seems like too much work though)

I'd like to know if anyone is willing to share their steps for receiving payment from their customers.

Thanks!
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Old 05-13-2007, 09:45 AM
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omytfineo1 omytfineo1 is offline
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Re: When to receive payment

Anyone? Please be gentle, it's only my first post!
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  #3  
Old 05-13-2007, 10:03 AM
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Doug Nelson Doug Nelson is offline
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Re: When to receive payment

Working online is a very different kettle of fish than in-person. In-person you can show them your results, get the payment, and everyone's happy. Online, you can't very well show them your results unless you want to watermark, etc. Plus I've found showing results before payment prompts needly little redo requests.

But then again, you do have their original and can hold onto it until they pay (although they might not care).

I always demanded payment up front, in full. But then again, my primary motivator was not to make a lot of money. And this was a few years ago before the assembly-line retouching companies were around.

I doubt there is any obstacle that can't be overcome with a good site design and good copywriting. Decide how you need to work, then write your copy around that.

My #1 advice: don't compete on price. You can't win that way, and it will weed out the potential customers that are skittish about things like paying in advance. Come up with a reason to do business with you that separates you from "everyone else". You'll find that lessens a lot of headaches.
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Old 05-13-2007, 03:25 PM
Mike Mike is offline
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Re: When to receive payment

People pay in advance for fast food, bus or train, airplane trips, hotel rooms, rental cars, newspapers and on and on. Why is it a problem for them to pay you in advance?
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Old 05-13-2007, 07:53 PM
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chillin chillin is offline
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Re: When to receive payment

I think they never know if you take them to a destination they want.
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Old 05-13-2007, 08:37 PM
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omytfineo1 omytfineo1 is offline
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Re: When to receive payment

Thanks very much guys.
If you look at like the way Mike sees, why not pay it all up front. I guess I am thinking that the customer is not receiving tangible goods at the moment of full payment.
I think I should feel also that if the customer is going to trust me to do their work, they will need to see a solid website with some good copywriting. I plan to do that.
With all things considered, I will be asking for full payment up front.

Hey I'd also like to comment on how great a resource this forum is. Thanks again to those who posted back.
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Old 06-28-2007, 05:05 PM
pixelzombie pixelzombie is offline
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Re: When to receive payment

at the very least, try to get half upfront...the last freelance job i did was back in march and i'm still trying to collect payment from him...everytime i email him theres always some story about his parents being sick or his wife having surgery, which i can understand to a certain point but how long does it take to send a payment through paypal?......it's too bad we can't have a section on this site to warn others about people like him...
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Old 06-28-2007, 07:38 PM
zganie zganie is offline
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Re: When to receive payment

I think 50% up front is fair to both parties and the rest on delivery,that way your expenses are covered and the client has something to hold back until the job is finished which will make them feel secure


just my opinoin zganie
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  #9  
Old 06-30-2007, 03:27 AM
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Sanda Sanda is offline
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Re: When to receive payment

Quote:
Online, you can't very well show them your results unless you want to watermark, etc. Plus I've found showing results before payment prompts needly little redo requests.
I couldn't agree more. I have been asking for 50% deposit before I start and giving the customer a watermarked preview on line. But I am seriously considering going with the full payment up front and no preview because of the customers who ask for one thing then when they see the preview start asking for other things and not wanting to pay more for the changes. It becomes very time consuming and somtimes annoying.
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