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Taking deposits on flooring jobs

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A deposit does two things. It covers money you spend before the job starts, mostly materials, and it turns a "yes" into a commitment on your calendar. Here's how installers commonly set the amount, the trade-offs between ways of getting paid, and what to put in writing. Deposit rules differ by country, and often by state or province, so treat this as a starting point and check the law where you work.

How much to ask for

Deposits on flooring jobs commonly fall somewhere between about 10% and 50% of the total. Where you land depends on a few things:

Worked example: does the deposit cover the materials?

Take the sample quote from How to write a flooring quote: total $2,310.01, with materials of $1,095.34 plus $76.67 tax.

Materials with tax: 1,095.34 + 76.67 = $1,172.01

A 30% deposit: 2,310.01 × 0.30 = $693.00, which covers 693.00 ÷ 1,172.01 = 59% of the materials.

To cover all of the materials, the deposit would need to be 1,172.01 ÷ 2,310.01 = about 51% of the total.

Under the California example above, the most you could ask for up front is 10% of 2,310.01 = $231.00, since that's less than $1,000.

If the deposit you can take doesn't cover the materials, decide how you'll handle the gap before you order: carry the cost yourself, or set a payment schedule the rules where you work allow.

Card vs payment apps and bank transfers

Card

Example: the fee on a card deposit

At an example rate of 2.9% + 30¢ (card fees vary by country and card type, so check your processor's current pricing), a $693.00 deposit costs 693.00 × 0.029 = $20.10, plus $0.30 = $20.40.

What reaches your bank: 693.00 − 20.40 = $672.60.

Some installers build the expected card fee into their prices. If you're thinking of adding a separate surcharge for card payments, check first: surcharging rules vary by country, state and card network, and some places don't allow surcharges on consumer card payments at all.

Payment apps and bank transfers

Which of these your customers use depends on the country. In the US, it's often Cash App, Venmo or Zelle. Elsewhere it's often a bank transfer or a local instant-payment system, such as Pix in Brazil or BLIK in Poland.

Many installers offer both: card for convenience, and a transfer or payment app for customers who prefer one.

Get it in writing

Put the deposit terms on the quote itself, so they're part of what the customer signs:

Don't order materials until the deposit has actually arrived. A screenshot of a payment isn't the same as money in your account.

Keep the records straight

Whatever the method, give the customer a receipt for the deposit, and keep each payment matched to its job: who paid, how much, how, and on what date. When the balance comes in, the same record shows exactly what's left to collect, and it's what your bookkeeper will ask for at the end of the year. Some tax systems treat a deposit as taxable when it's received, so ask your accountant how to record it.

If you have to cancel a job yourself, return the deposit promptly, ideally by the same method it was paid, and note the refund on the job record.

How Parquo does it

Parquo puts the deposit on the quote. Where Stripe supports payouts to your country through Parquo, your customer can pay it by card right from the quote link, and it goes through Stripe Connect to your bank: you set up payouts inside the app, Stripe's fees apply, and Parquo currently takes no fee of its own. You can also add your own payment link, or show Cash App, Venmo and Zelle details where your customers use them, and mark the deposit paid when that money comes in.

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