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Craig Hogarth
09-05-2008, 8:33 PM
I have job quote that I'm stalling on over the weekend. They're custom made plaques that I'm having a company make for me. The plaques are to be used for school bus employee of the month awards, so I'll need 10 for this school year. My cost is about $20 and I'll probably charge about $60. The company's minimum order is $150 so I'll just order the 10 plaques all at once. My concern is that the maybe later on the school district may decide to go with a different type plaque or different engraver leaving me with excess plaques that cannot be sold to anyone else.

I always have customers pay in advance. On large jobs, I always get enough upfront to at least cover material/shipping plus $10 an hour for laser time. But this is different since it should be an ongoing monthly purchase. Any advice on how I should require payment?

Stephen Beckham
09-05-2008, 10:41 PM
Craig,

I'd do it as a contract. Tell them it's a special order to have 10 made. You won't require them to buy all ten, but there will be a $150 cancellation fee if they break the contract or change the design within the first six months. You could even write it up as a six (versus ten) month contract to provide montly award with option up to 10 months. If they only get 8 so be it - if they get all 10.... Yea!!!

Bottom line - you get at least $360 in purchases over six months or $220 if they only buy one then pay cancellation fee. SO you won't be out at least the material purchase.

A second option would be to use the terms 'special order' and 'prepay at least six months.' As stated (Joe P - I believe) in another thread, 'prepay' is not a deposit - therefore, not refundable. You'll still be covered your costs...

I'm not sure if that's worth 2 cents worth or not.... So I call call it a penny for my thoughts...

Craig Hogarth
09-06-2008, 2:28 AM
Thank Stephen, I never thought about a contract. I'm sure they have a contract officer I can deal with on this. I'll have to check it out on Monday.