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PostPosted: Wed Sep 06, 2006 4:52 am 
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Joined: Sat Nov 26, 2005 7:32 pm
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Location: United States
I was reading on Michael McBroom'ssite, specifically his Commission Agreement. While I was very impressed with the entire document, in the agreement he has a non-refundable deposit. At first, I did not like the idea, but after realizing how much time is spent initially to help the client choose the size, woods, etc etc., I think this makes so much sense and is quite resonable.

What do you all think. How many of you do this?

Micheal,
May I use the format of your document to produce my own?
I hope you do not mind me singling you out like this. You have a very nice website and great looking guitars!

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PostPosted: Wed Sep 06, 2006 5:00 am 
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Brazilian Rosewood
Brazilian Rosewood

Joined: Sat Jan 08, 2005 1:26 am
Posts: 2558
Location: United States
I found in my early days of building that EVERY musician wanted a custom guitar. It was sort of the bright shiney object that they were distracted towards. But nearly all of them knew that there was no way they could pay for it. Yet many still wasted my time by running be through the paces of getting a quote together based their perfect wood choices. Then they would just sort of fade away.
If I mention my non-refundable deposite up front it saves everyone a lot of time and energy.


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PostPosted: Wed Sep 06, 2006 5:07 am 
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Old Growth Brazilian
Old Growth Brazilian

Joined: Tue Dec 28, 2004 1:56 am
Posts: 10707
Location: United States
This is directly off of my presitation CD and soon to be on my new web site:


To someone that has never commissioned a hand-crafted instrument, the following may seem steep, but please keep in mind, that your guitar is specifically custom built to your specifications. If for some reason you cancel your order while in process I would then be left with an instrument I am not likely to be able to sell to redeem my labor. I am less on my deposit that the vast majority of luthiers.
   This deposit is to insure you are as serious about this order as I must be about building it. I am more than willing to work with someone on the return of their deposit if unexpectedly faced circumstances such as family tragedies and natural disasters, provided they are honest and willing to work with me. I do not want your money if I do not provide you an instrument, but please if you know going in that you are likely to cancel, then please do not order.

Deposit & Payment Schedule
A 75% of total sale price deposit is required to reserve a spot in the building schedule. This deposit is 100% refundable only prior to material order, 80% refundable less material cost after material is ordered, 60% refundable less material cost and labor at a labor rate of $10/hr after commencement of construction. If any custom inlay work has been cut and inlaid prior to cancellation of order, the deposit is 50% refundable less material cost and labor at a labor rate of $10/hr. No materials will be ordered nor will construction be started prior to receipt and bank clearance of the deposit. The balance will be due at pick-up/delivery or prior to shipping if shipping is required.

I to have a commission agreement Very much like Michael's that the client and my self sign prior to the acceptance of the order. I also record all adendums to the commission on an addendon notice to cover any changes made after the the original agreement.MichaelP38966.6012384259


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PostPosted: Wed Sep 06, 2006 6:10 am 
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When I was a kitchen designer many moons ago, we learned to first qualify the customer so as not to waste tremendous amounts of time doing work for them that would never be payed back in sales. As Paul Woolson said, it helps to get all that information out in front, which forces the potential customer to think about the process as seriously as you do.

Allowing a customer to walk out in the middle with their money leaves them no worse for the wear, but leaves you having spent many hours of labor and materials for them and nothing to show for it.

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PostPosted: Wed Sep 06, 2006 8:44 am 
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On my site, I've got a 10% non-refundable deposit required for any custom order and a 25% deposit if they're using my wood, though only 10% of it's non-refundable.

If they follow through with the purchase but aren't satisfied with the guitar, they can actually recover the full 100%...I just put the 10% condition in to qualify potential buyers and to ensure that people are motivated to put the money on the table when their guitar's done.

Andrew


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PostPosted: Wed Sep 06, 2006 11:13 am 
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Koa
Koa

Joined: Sun Apr 24, 2005 4:05 am
Posts: 749
Location: Canada
I have a 25% non refundable deposite.


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PostPosted: Wed Sep 06, 2006 12:38 pm 
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Brazilian Rosewood
Brazilian Rosewood
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Joined: Thu Oct 06, 2005 1:05 pm
Posts: 3350
Location: Bakersville, NC
Focus: Build
Status: Professional
$500 non-refundable on mine.

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Cornerstone Guitars
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