# Making payments



## msf (Sep 5, 2010)

I was just wondering if anyone here allows people to make payments for a portrait, and how you do it.

I want to make it easier for people to justify spending a lot of money on a portrait package and offering them a monthly payment system.  But this may require them getting the goods before the amount is paid off.

I think paypal offers something for ebay customers to finance their purchase, but I dont know if this can be done outside Ebay.

What do you all do?


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## mwcfarms (Sep 5, 2010)

Make them pay up front.


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## njw1224 (Sep 5, 2010)

Definitely don't let them get any product before the total is paid in full. It's fine if you want to set up payment plans, but if I were you I wouldn't produce anything until they're down to the final payment. Then you have most of the money, and if they don't come back to pick up the prints and make the final payment, you're not out much. Also, if you're doing payments, you'll want them to sign a contract stipulating how many payments, how much, in what timeframe, and that payments are non-refundable. Personally, I wouldn't get in to payments unless you know the people very well. Then I'd require 50% down minimum.


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## msf (Sep 6, 2010)

I was thinking of something that was no risk to me, gave them the option to make payments, because $40 a month looks alot better than $800 all at once.  Nothing like them promising to give me $40 a month and give them the $800 product.


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## Josh66 (Sep 6, 2010)

When you start talking about more than 3-4 payments (maybe 2-3...), I think all you're going to do is attract customers that can't actually afford your services...
(And then you'll end up doing work that you will never get paid for...)

Who is going to wait a year to pay off a photographer so they can get some pictures...?

edit

Half down, half on delivery sounds like a good compromise...


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## KmH (Sep 6, 2010)

Many retail photographers let clients make a limited number of payments.

Administratively, and contractually, it's a PITA.

It is questionable you could make the payments non-refundable if you have not provided some kind of service to the client. Providing some kind of service would effectively make the payments a retainer, not a deposit.

Deposits generally cannot be made non-refundable.

If you don't already have the capability, look into accepting credit cards.


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## mwcfarms (Sep 6, 2010)

O|||||||O said:


> When you start talking about more than 3-4 payments (maybe 2-3...), I think all you're going to do is attract customers that can't actually afford your services...
> (And then you'll end up doing work that you will never get paid for...)
> 
> Who is going to wait a year to pay off a photographer so they can get some pictures...?
> ...



+1- I might not have wanted to drop 2000 on a wedding photographer but I did. Paid a quarter as a deposit and the remainder on the day. 

Now that of course is much different than a family photo session. But if your charging a flat fee of so much for the session and they want x amount of prints you could do what was suggested. Half down and the remainder on delivery. I think you will attract the wrong clientele with anything else.


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## DennyCrane (Sep 6, 2010)

Yeah, $40 a month- do you really want to wait 20 months for your money? And if they stop paying, do you really want to go into the collection business?

At least half down and then a very short payment period, but no longer than 6 months.... and that's IF you can somehow verify they'll be able to pay and have paid debts in the past. Do you really want to get into the credit rating business? 

I find it simpler to deal only with the people who have the ability to pay up front.


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## njw1224 (Sep 6, 2010)

DennyCrane said:


> Yeah, $40 a month- do you really want to wait 20 months for your money? And if they stop paying, do you really want to go into the collection business?



Amen. And do you want to have to refund the money when they get half way through the payments, can't continue, and ask for a refund (because by then they've lost the interest and excitement in the photos)? I think what you're hearing from everyone is do a VERY limited number of payments and a short payment schedule. Good Luck


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## ghache (Sep 7, 2010)

get paid upfront


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## Big Mike (Sep 7, 2010)

I think that in most 'monthly payment plan' scenarios, there is an actual credit application process.  Which I'd guess is a real PITA, as mentioned.  (I'm paying for a new roof with 36-month no-interest payment plan...and they tacked on a $149 'set up fee'....:roll: )

If you want to offer more flexibility to your customers, then set your self up to take credit card payments.  I guess you could even offer to only charge so much per month, onto their card.


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## GerryDavid (Sep 15, 2010)

I decided nto to get a credit machine, I havent been asked to take a credit card yet, and when I do Ill just refer them to paypal or google payments, maybe even amazon payments, I gotta look into that one, it seems to have no charges.


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## Mustlovedragons (Sep 15, 2010)

Heck no. When people suggest that I say "well, I will be here when you are ready". I learned that one the hard way...four times, lol.

BTW, Paypal financing is actually a credit card they have to apply for, like any other line of credit. It's called "Paypal Buyer Credit". I uses it as a back up for my retail biz, based on the advertising link eBay first put up for it.


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## pbelarge (Sep 15, 2010)

I am not sure what the industry standard is, so it is hard for me to say.


But...
Being in business over 30 years, I can say the fastest way to not receive full payment is to allow a payment plan.
The percentage of customers who do not complete payment is staggering.


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## FlashThat (Sep 24, 2010)

Ask for credit cards instead.
or
Always get 50% upfront and then resort to do a short-period payment plan.


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## msf (Sep 24, 2010)

I think my post has been misunderstood.

I never intended that I would be taking the payments.  I was thinking more of a company that would basically be giving the customer a loan, and then teh customer would have to pay that company back.  I would loose a bit in this transaction since the company has to make their money.  If the customer doesnt pay up, then the other company takes them to collections, and I dont have a thing to worry about.

I dont know if a company like that exists, which is why I was asking.


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## Big Mike (Sep 24, 2010)

> I never intended that I would be taking the payments. I was thinking more of a company that would basically be giving the customer a loan, and then teh customer would have to pay that company back. I would loose a bit in this transaction since the company has to make their money. If the customer doesnt pay up, then the other company takes them to collections, and I dont have a thing to worry about.
> 
> I dont know if a company like that exists, which is why I was asking.


You just described every credit card company.  :er:


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## msf (Sep 24, 2010)

I know, but im talking about an alternative to a credit card company.  not everyone has $1000 available on their cards.


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## Christie Photo (Sep 24, 2010)

What I do...  what I've always done is:

Session fee is paid at the time of the session (first payment)

Deposit paid when previews (proofs) are delivered (second payment)

50% paid when print order is placed (third payment)

Balance upon completion (fourth payment)

I've had _very_ few over the years that don't follow through.  Many will pay complete when placing their order.  Most write checks or use a credit card.

-Pete


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## Big Mike (Sep 24, 2010)

> I know, but im talking about an alternative to a credit card company. not everyone has $1000 available on their cards.





> I was thinking more of a company that would basically be giving the customer a loan, and then teh customer would have to pay that company back.


If not a credit card company...then how about a bank?  :er:  :roll:

I don't understand what you are looking for.  You are describing what a credit card company (or bank) does.  If they don't have $1000 credit (or cash) available to them, then they probably shouldn't be ordering $1000 worth of photography from you.

I guess their are other alternatives...around here we have 'payday loan' companies and maybe pawn shops that will lend people money...but they charge the maximum allowable interest...which is a very bad alternative.  These are for people who don't have credit cards or have maxed them out.  

And yet another alternative would be a loan shark...but I don't know many people who are willing to risk broken legs, just so they can have a nice family portrait hanging on their wall.


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## DennyCrane (Sep 26, 2010)

A solution for businesses is to offer financing through companies like GE Capital. They're the ones that will be handling collection of payments. You simply guide the customer through the application processes, make a call and get approval. You get your money up front and the customer gets the services and products. I know GE Capital has programs with 30, 60, 90, and even 6 months same as cash. 

And if they don't have the credit to get this, well, they're better off as customers who pay cash up front.


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