A lot of screen printing, embroidery, signage, and custom printing shops ask for a down payment instead of the full payment on their orders.
They may take terms, basically giving their customer an interest-free loan. Ordering garments becomes risky. Inevitably a customer stiffs you or never picks up their order.
This is no good. It’s a self-inflicted wound that has killed hundreds of entrepreneurs’ dreams.
We need to change this mentality. For direct to consumer jobs, we need to start requesting 100% payment upfront all of the time.
Sure, there are plenty of exceptions for term customers and contract work…but for 99.9% of direct-to-consumer jobs, it’s time to request full up-front payment.
This is a no-brainer!
3 reasons to collect 100% payment upfront
Note: Using the automation feature in Printavo, you can automatically request payment on orders after they’ve been approved by the customer.
There are three very simple reasons to get paid up front for custom printed products.
Reason #1: Cash flow security
Poor cash flow management kills screen printing businesses. We’ve seen it firsthand. Don’t be a victim!
Unless you are meticulously focused on your budgeting, there’s a good chance you’ll be financially strained unless you take 100% payment upfront. Why?
You’re juggling too many things, taking terms is complicated, and it’s simply human to account for money you think you have when it’s actually coming much later.
Reason #2: It’s less work to take payment upfront
Eliminating steps – particularly the uncomfortable phone call, email, or in-office visit to request payment – is always a bold move toward efficiency.
If someone pays for their order when it’s placed, the transaction is complete. That’s it! You print, fulfill, get your review, and move on.
Fewer things to remember, fewer things to collect on, fewer things to train employees on, less potential for problems, more time to focus on printing and sales.
Reason #3: Customers are used to paying upfront
When you buy something as a consumer, you pay the full price right then and there. Except for really big ticket items, you don’t expect to come back later and pay the rest.
Whether you do it online or in a store, you’re comfortable paying the full price. Even for custom printed products!
If you buy a couch, you pay 100% – and you don’t get the couch for six weeks!
People are used to paying upfront. They prefer it. It’s really not a problem.