Wren Halvorsen cut $1,100 of walnut for a custom dining table, and then the customer stopped answering her phone. No deposit had been taken. She sold the lumber at a loss and lost three weeks of shop time on a slot she couldn't refill. The fix is a simple rule: ask for a deposit equal to the money you must spend before you're paid, plus a little for the time you're holding, and say so in plain words.

Below are that sizing rule with worked numbers, three phrasings from soft to firm, how to word the ask in a quote, a text and a call, what to say when a customer pushes back, and a one-sentence refund term. Wren owns Tallgrass Custom Furniture, a two-person cabinet and furniture shop in Lincoln, Nebraska. This is general information, not legal advice. Deposit limits and refund rules vary by state.

Why a deposit protects both sides

For you, a deposit covers the money you spend before payment and proves the customer is serious. For the customer, it holds a date and a price, and it commits you, too: you've now agreed to reserve time. It also filters. People who won't put down any money for a custom piece are often people who'd have stalled later. The deposit isn't a penalty. It's the first payment, and it goes toward the total.

When a deposit makes sense, and when it doesn't

Ask for one when any of these is true: you buy materials specifically for the job, the lead time is long, the work is custom (can't be resold if abandoned), you hold a time slot that costs you if it's empty, or the customer is new to you. Skip it for quick repairs, repeat customers on routine work, and anything you'd finish and collect on the same day. Wren's $180 chair repair needs no deposit. Her $28,000 kitchen needs a large one.

A sizing rule that isn't a guess

Most guides give ranges by trade: 25 percent here, 50 percent there. The trouble is that your costs aren't a trade average. Use this instead:

Deposit = the materials you must buy before being paid + 10% of the price for the time you're holding, rounded to the nearest 5%.

Wren's three jobs show how it plays out:

  • A $4,200 dining table. Walnut costs $1,100, and 10 percent of the price is $420, for a total of $1,520. That's about 36 percent, so she rounds to 35 percent: a $1,470 deposit.
  • A $28,000 kitchen with an eight-week lead time. Materials are $11,000 and 10 percent is $2,800, for $13,800. That's about 49 percent, so she asks for 50 percent: $14,000.
  • A $180 chair repair. Materials are $15 and 10 percent is $18, for $33. That's under 20 percent of a small job, and chasing it costs more than it protects. No deposit; pay on pickup.

One caution. Some states limit deposits on home-improvement work. California, for example, has capped down payments on most home improvement contracts at 10 percent or $1,000, whichever is less, with exceptions. Look up your state's rules for your trade before you set a percentage. The same logic, applied to larger jobs and what happens when someone cancels, is in a cancellation policy template.

In the quote: three phrasings from soft to firm

Put the deposit in the quote, not in a separate conversation afterward. It reads as policy, not a demand. Choose the tone by how well you know the customer.

Soft (a repeat customer): "To get you on the calendar, we'll take a 35% deposit, $1,470, which goes toward the total."

Standard (most customers): "To reserve your date and order the walnut, a 35% deposit of $1,470 is due at signing. The balance of $2,730 is due on delivery."

Firm (a new customer or a high-risk job): "Work begins when the 35% deposit of $1,470 is received. Materials are ordered the same day, and your delivery date is confirmed once it clears."

Check the math: $1,470 plus $2,730 is $4,200. Always show the balance next to the deposit, because customers react less to the deposit when they can see the whole structure. A longer set of quote wording is in how to follow up on a quote, and the contractor version, with the days between messages, is in estimate follow-up for contractors. A payment link in the quote lets the customer pay in one tap, and many customers decide to say yes at that moment, not the next day.

By text and by phone

When the customer says "sounds good," ask right then, before the enthusiasm cools. By text: "Great. To lock in the November 6 start, the deposit is $1,470. Here's the link to pay: [link]. Once it's in, I'll order the walnut tomorrow."

On a call, say the number plainly and stop talking: "To reserve your date, I take 35 percent, which is $1,470. I can send a payment link right now." Then wait. The most common mistake is apologizing: "I hate to ask, but..." Apologizing tells the customer that the deposit is unreasonable. If you are nervous about saying prices out loud, the pricing conversation flinch explains why that nervousness shows. For estimates that arrive by phone, the structure in a phone script for following up on a quote works here too.

When a customer pushes back

"Why do I have to pay anything first?" Answer with the reason: "The walnut for your table is $1,100 and I buy it the day you sign. The deposit covers that." People accept a reason they can picture.

"Can it be smaller?" You can adjust within reason, but don't invent a discount. Offer a split: "I can take $1,000 now and the remaining $470 on the day I start cutting." The total stays the same and you're protected where it matters.

"I'll pay when it's done." Say, kindly: "For custom work I can't begin without one, because the materials are bought for you. If you'd prefer a ready-made piece, I can show you what's in the shop." That's a real option for a customer who truly can't prepay, and it keeps you out of a fight.

Refund terms in one sentence

Put this next to the deposit: "The deposit is refundable in full within 3 business days of signing. After that, we refund it minus materials already ordered and time already spent, with an itemized list." It's fair and specific, and you can defend it. "Non-refundable" is the phrase that makes customers hesitate. The 3-day window also fits alongside rules that give buyers time to cancel sales made at home, and the FTC's Cooling-Off Rule is worth a look if you sell in people's homes. When a deposit is paid, confirm it the same day with a message like the booking confirmation email template, and keep the receipt. The routine for reducing no-shows covers what comes after.

A deposit means somebody already said yes, which is the harder half. Rocketship finds the buyers, emails them from your own Gmail, follows up, and books the meeting on its own. Plans that get you customers start at $24.99 a month (Launch), and every monthly plan starts with a 7-day free trial, card required. See how the AI workers keep quotes from going quiet so there's a yes to collect on.