Deposits: Percentage vs. Flat rate

I’m finally getting around to finalizing my “contract” and was wondering if a flat-rate deposit works better than asking for 30% (my initial inclination). I’m thinking some people might have a hard time (not that it’s hard) figuring out 30% of their total, especially if there are extra charges involved (like travel & canopy set-up fees).

Anyone have a problem with people paying the wrong amount for a deposit?

Also - I noticed some people have a clause in their contracts stating that if cancellation is within 48 hrs of event, the FULL amount is due. Anyone been successful collecting when dealing with a private party? I’m assuming you’d have to dismiss the travel & tent fees and legally may even have to prove that you turned work away for that date before you had a case for expecting payment without services.

hmmmm...I've only recently started taking deposits, but unfortunately don't have a standard amount. I don't usually take a deposit if it's just me painting at a one hour birthday party. If I am sending another artist though whom I have to pay, then I require a deposit. This ensures that I'm not wasting my artist's time with someone not serious (recently I had to cancel a gig because the lady never paid the deposit and stopped all communication. Would have been really bad if I sent another artist and then never got paid and couldn't pay her!). So if I send another artist, I basically ask for whatever amount will be going to the artist in the end. That way even if they take a while to pay me the remaining balance, I can still pay my artist right away. When just I am painting, I only charge a deposit if it's a long drive...enough to cover my travel fees and some of my time should I make the drive there and find out the event is off or something. (so I'm not out my time/gas) I luckily haven't had to go after anyone for late payments, but at least with this method I feel like I'm covered in the meantime in case I do! As for them not being able to calculate it or paying the wrong amount...you should have the deposit amount written in your contract anyway so they know exactly what they owe you. Plus you can always send them a Paypal invoice for the amount too!

My deposit requirement is 50% or $150, whichever is LESS.

I don't require deposits for birthday parties if they are at residences, but do require a 50% deposit for parties held at third party venues.

For corporate and other events the deposit is $150. If they cancel I then at least have it in my hand to make up for the loss of business that day.

And deposits are non-refundable but may be applied to another date within the calendar year, based on availability.

Thanks Shannon - Have you ever been burned by a private party when a deposit was not required?

Knock on wood.... no. I require payment in cash. And I still have a signed contract with them. If the parties are at their homes I know where they live, as they say! This is a small place and a lot of people I know from somewhere or know their guests, etc.

I have had an occasional cancellation due to extenuating circumstances but it doesn't cause me too much grief.

I just charge a flat $50. deposit. Once they pay the deposit, I've never had a cancellation. I think it works well to insure that they don't keep checking out other face painters while you're holdng their date, then stiff you. They seem to commit once they send a deposit...I don't think it's the amount, I think it's just that they invested their money

I just upped my deposit to a flat $50 also, from $25, which would irrk me at this point to have a cancelation and only net $25. I can book my Saturday over and over at this point, so I don't want to have empty hours on that day for so little, if someone leaves me high and dry.

I also heard at a business class (from a magicain...) that the larger your deposit, the larger your tip will be. He said that Mom pays the deposit, Dad writes the check, and if he thinks you are making less money for the whole gig, he is more likely to tip you more. We shall see.

Thanks for your feedback everyone.