unusual..... dont do it.

I bought custom cabinets from a cabinetmaker in rural New Mexico. We paid 50% up front, another 25% upon installation of the majority of the cabinets, the remainder upon completion of install. I would NEVER pay 100% upfront for cabinets, or any other construction-type work.

Don't.

I am a small independent kitchen and bath store owner. It is very hard to get terms with cabinet companies right now. If you are going with a small company that makes them on their own. They do not need to have the cash flow for a full payment to get started producing the product.

No one wants to finance anything right now. None of the cabinet companies want to allow the products to be paid 30 days after delivery as everyone is worried about who will still be in business next month. A lot of the dealers in my area charge 100% mark up on their products so a 50% deposit pays for the products and the 2nd payment contains the profit. I work on margins that are 25-35% on the most expensive products and I try to get 50% on the middle of the road in cost products I have. And then I sometimes have to go on 25 -35% mark ups to get the bargin hunters that are looking around the internet.

Most large retailers charge 100% upfront.

I recently committed to sell custom cabinets to a person from my local home show I attended for exactly what they cost me from Geppetto. They are every bit as talented and high quality as woodmode. I wanted to beat out the competition and get a sale with the Geppetto. 50% down leaves me 50% short for what I have to pay the cabinet company.

Being established with lines of credit and all the other things normally translates to the company that offers 50/50 if they do not make means you are paying more money on your transaction then other people out there.

Economics 101

Thanks, all. I get the "don't" part -- what I'm wondering is, have you heard of it? And/or: did you do so?

Because I've asked and argued quite a bit and heard repeatedly (from them) that it is not uncommon and they have always done it, etc. They've been around a goodly long while. And the matter as to whether I should is moot; I've made an arrangement (less than 100%, more than I should have). I'm just wondering if it's really as unusual as is suggested here. (A different question from whether it's advisable).

Thanks!

Unheard of.

i spoke with 3 different custom cab places. none asked for 100% up front. they all asked for 30-40% deposit to get started, and a ~ 30-40% upon delivery and balance upon completion of installation. they were all hurting for work and i got call backs from all the companies trying to get my business - very tough economy right now.

Just because there might be a few people that did, or have, does mean you SHOULD. Again, paying for materials and a retainer is one thing, but you said some installation was lumped in that price. At the very least, you should not pre-pay for anything to do with your installation.

Well, their contention that it's not uncommon is just silly--or their definition of "common" is not the one most people use. So, it's not uncommon for them, but it is most definitely far from the norm in the industry. Since at least one or two posters have said they did pay 100% up front, it's not completely "unheard of" either. Still, just look at the number of people who have said they checked with multiple cabinet makers and never heard ANY expect 100% up front. I can be counted in that group.

These folks need to understand that this practice of holding the transgressions of their past customers against their current customers is likely to lead to fewer future customers.

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