[BMdriver]

I am currently looking to buy a Schuller German kitchen circa £25k including appliances. However the company want £5k now, then in a few weeks another £8k to purchase the furniture from Germany. They then want £6k to purchase the appliances. The remainder for the granite and fitting will be paid in stages. I am obviously not going to expose myself to such a risk in case they go bust with my money (although it will be on a credit card for the added protection). But what would you consider as a reasonable upfront deposit before any items arrive at my house?

They seem strict on this payment plan so I will be taking my business elsewhere. This element of risk would give me sleepless nights.

Has anyone had previous experiences with deposits for such purchases?

[vikz55]

Doesn't sound terribly unreasonable to me. As a firm they have to protect themselves too. As you say you will have credit card protection.
If you're using a good quality firm (which for the price I would expect you are), you have to have some trust in them doing what they say they will.

[isleaiw]

Originally Posted by vikz55

Doesn't sound terribly unreasonable to me. As a firm they have to protect themselves too. As you say you will have credit card protection.
If you're using a good quality firm (which for the price I would expect you are), you have to have some trust in them doing what they say they will.

My kitchen wasnt in the same price point (only about £12k) but I didnt pay a penny until I was completely satisfied - which I was and had them do other work as a result.

My business buy raw mats on 60 or 90 day terms - which funds the cash flow whilst waiting for customers to pay.

[Mark1966]

Have you considered sourcing the kitchen hardware/appliances yourself, will probably be cheaper and give you more peace of mind.

[McBride]

I live by the rule of never pay anything up front.

I can't think of a single service or purchase where you are expected to pay upfront before receiving the goods. (Except deposits).

In my eyes the company should always be responsible for buying in the stock before charging it back out to a client.

For large purchases by all means pay in stages. On completion of certain jobs. Eg for a house extension I would agree to pay a lump sum after each construction stage to aid the contractor with cash flow.

[Mark1966]

Originally Posted by McBride

I live by the rule of never pay anything up front.

I can't think of a single service or purchase where you are expected to pay upfront before receiving the goods. (Except deposits).

In my eyes the company should always be responsible for buying in the stock before charging it back out to a client.

For large purchases by all means pay in stages. On completion of certain jobs. Eg for a house extension I would agree to pay a lump sum after each construction stage to aid the contractor with cash flow.

I tend to agree with you.

I am always suspicious of companies that do want up front payment and think that if their cash flow is not adequate to buy in supplies then they may go 'tits up' whilst sitting on my dosh.

[robbiep]

It all depends. We had a new kitchen made by a small local company (all handmade) a few years ago. The company is, quite simply, not in a position to have that amount of money owing.
So it was a 25% deposit on order. 25% at start of fitting, 30% at end of main fitting. 20% on all snagged out.

[Cootie]

Yes, have just taken delivery of a Schuller kitchen that is getting fitted next week.

They are a long established and I wouldn't worry about the financial position. Best way to do it is pay the deposit on your credit card and you're covered in the unlikely eventuality of something going wrong.

[BMdriver]

Originally Posted by Cootie

Yes, have just taken delivery of a Schuller kitchen that is getting fitted next week.

They are a long established and I wouldn't worry about the financial position. Best way to do it is pay the deposit on your credit card and you're covered in the unlikely eventuality of something going wrong.

Hi,

Thanks for the replies. I have no doubt Schuller are a well established large company. I am concerned the small kitchen company who want all my cash do not pay them, nor order my kitchen.

I am going to look elsewhere as the thought of handing over £20k without receiving any goods whatsoever would give me sleepless nights, and goes against all of my instincts.

[moonshine]

Trust your instinct. if not happy, then walk away.
If the Kitchen fitter orders the parts, the will presumably be issued an invoice which requires some form of settlement prior to shipping of order. - Can you pay the kitchen manufacturers invoices directly rather than pay the fitter and rely on them to pay the manufacturer? (thereby avoiding the risk of them not paying the kitchen manufacturer?
if I were dealing with a reputable company I'd still be paying any sort of substantial deposit by credit card in order to get the extra insurance that comes with it, however phased payments would be OK.

[NISFAN]

If it is a custom ordered product, which I would think a kitchen is to an extent, I would expect a company to ask for a deposit which would be enough to cover those materials. The appliances and labour on the other hand are not bespoke, so should only be charged for on completion in my view.

I had a granite worktop replacement in my kitchen, and the company took absolutely no deposit, which I was surprised about (other than pay for the measurement service on the day). Under distance selling regs I could have told them to go whistle if I changed my mind, so would expect a company to at least have some cards in their hands if things go pear shaped.

[BMdriver]

Originally Posted by NISFAN

If it is a custom ordered product, which I would think a kitchen is to an extent, I would expect a company to ask for a deposit which would be enough to cover those materials. The appliances and labour on the other hand are not bespoke, so should only be charged for on completion in my view.

I had a granite worktop replacement in my kitchen, and the company took absolutely no deposit, which I was surprised about (other than pay for the measurement service on the day). Under distance selling regs I could have told them to go whistle if I changed my mind, so would expect a company to at least have some cards in their hands if things go pear shaped.

Hi,

the units are not custom made, as they are stock sizes 800, 1000 cabinets etc, so it is not made bespoke to me.

I do not mind paying a 20/30% deposit, but all of the money unnerves me. Other companies ask for this and then stage payments upon delivery, and as work commences.

[moonshine]

I guess you need to establish where your nervousness lies.
Is it the fitter taking your cash and not paying the supplier of the kitchen, trousering your cash and being left with no goods or is it the supplier wanting payment and going bust before supplying goods?

If it is the former, then arrange with the fitter to place order and pass the invoice to you which will allow you to pay the supplier directly, and remove the element of risk.

If it is the latter, pay the supplier with a CC to get protection.

Staged payment during the job at agreed milestones should be able to be accommodated by the buidrr

[NISFAN]

Originally Posted by BMdriver

Hi,

the units are not custom made, as they are stock sizes 800, 1000 cabinets etc, so it is not made bespoke to me.

I do not mind paying a 20/30% deposit, but all of the money unnerves me. Other companies ask for this and then stage payments upon delivery, and as work commences.

No I understand that, what I am saying is the combination of cabinets you have ordered are typically unique to your kitchen. If you cancelled the company have a job lot of units that don't fit anywhere else as a package. Yes it might be possible to split the items, but that is not always easy as the units are most likely delivered to the job site address by the supplier. There is also the colour scheme (door fronts) which is by part the most expensive bits, and probably the contractors have no storage for them either.

You shouldn't have to pay anything more than a small deposit (to cover costs of getting rid of the above) until work is complete, at least in part. And staged payments.

[KS_340i]

We did this7-8 years ago in our last house, similar sort of amount.

I recall we paid around £5k deposit, then rest on completion. Was fitted in 2 days anyway as we renovated an entire house so it was a dry fit only. I too would be wary about too much in advance.

[....,,,,..,,..]

We are looking at doing similar, had quotes in etc.

However, have decided to use a carpenter / fitter we know.

He is happy us using his full trade discount and will be doing it in a bit of staged approach, as I want to take a wall down lol.

[NorthEastX5]

we had a kitchen fitted about a year ago. £5K down (on credit card) rest on completion. total cost was around £30K but it did include the utility room and we probably went overboard kitting out in identical work surfaces to the kitchen but the effect overall was great so don't regret that. i also got a bit carried away on the appliance models......that's what happens when you let a bloke look through the brochure for the ovens etc

for a project like this and the amount of kit that had to be pre-ordered and custom made as some of it was I couldn't argue with having to pay a deposit and was happy to do so.

one thing to bear in mind its OK to say "don't pay upfront" but we were using a reputable local firm and i can understand them trying to protect themselves as there are some customers out there that are to put it mildly tossas.

during the course of having our kitchen fitted another client they were working with made a point of ordering "cream" units to point they were on the order form. then claimed when installed they were wrong colour and not what they ordered. they wanted the firm to pay to change them. to their credit the firm did not. basically the lady of the house realised she got it wrong and had gone against the advice of the owner/designer who had told her numerous times the cream would not work with their chosen worktop. so some firms do need money up front to ensure you commit your order and go through with it.

most of us probably play fair and square and would happily pay in full on completion but I can see it from the other side of the fence as well especially when dealing with kitchens which lets face it aren't cheap these days.

[Kal101]

Go with your instincts

Whilst the supplying company may be 100% how well do you know the fitting company and their reputation. Worthwhile looking for on line reviews satisfied customers etc

There was a company a few years ago that wad offering bespoke wood and granite kitchen at a knockdown ( unbelievably knock down ) prices. They took a lot of deposits and then folded. I'm not saying your company will do that but be cautious.

Have you considered having the units etc delivered direct then paying the balance etc on receipt.

[Mark1966]

OP as said above go with your instincts, imo they are asking for too much up front, I would look elsewhere, Good luck