You order the cabinets, hold two weeks open on the calendar, and then the homeowner goes quiet or changes their mind. A deposit is how you stop paying for other people's maybes. Here is how to ask for one without making the job harder to win.
A plumber can fix a leak and get paid the same afternoon. A remodel is different. Weeks pass between the first phone call and the first day on site, and during that time you are spending money and turning down other work.
Special-order materials are the big one. Cabinets, windows, tile and countertops often can't be returned once they are cut or built to size. If the customer backs out after you order, that cost lands on you. The deposit puts some of the customer's money into the job at the same moment you put yours in.
Before you set a deposit policy, look up the home improvement contract rules where you work. Some states limit how much a contractor can collect up front, require a written contract above a certain job size, or give the homeowner a short window to cancel after signing.
Your state's consumer affairs or contractor licensing office publishes them, and a short call with a local attorney or your trade association is cheap insurance. Everything below assumes you stay inside whatever your state allows.
There is no single right percentage. Work it out from what the job actually costs you before the first day of work.
Add those up and compare the total to the contract price. That gives you your own number: up-front cost divided by job total. If your deposit is smaller than that, you are financing the customer's project out of your own pocket. If it is much larger, expect more pushback, and check it against your state's limit.
The deposit is only the first payment. For anything longer than a few days, spell out a payment schedule tied to things the homeowner can see: demo complete, rough plumbing and electrical passed inspection, cabinets installed, final walkthrough.
Milestones are fair to both sides. The customer never pays far ahead of the work, and you never get far ahead of the money.
The deposit should not be a surprise at the end of a sales visit. Put it on the estimate, in plain words, next to the price.
When the terms are written down before anyone asks, the deposit reads as how you do business, not as a sign that you don't trust this particular customer.
Say it early and say it plainly. Mention the deposit during the walkthrough, long before the estimate goes out: "If you decide to go ahead, we take a deposit at signing. That covers ordering your materials and holds your start date."
If a customer pushes back hard on any deposit at all, treat that as information. You can offer a smaller amount to cover only the special-order items, but be careful about buying materials for a job with none of the customer's money in it.
Most deposits stall for a boring reason: paying is a hassle. The customer has to find a checkbook, wait for you to come by, or remember to mail something.
Send the estimate in a form the customer can read and sign on their phone, with a way to pay the deposit by card in the same sitting. Then follow up. A short message a day later, another a few days after that, and one more the following week is enough. Ask if they have questions and remind them the start date is open until the deposit is in.
Keep a simple list for the next couple of months. For each estimate, write down the date you sent it, whether it was signed, and how many days passed before the deposit arrived.
Signed estimates divided by estimates sent is your close rate. The average wait for the deposit tells you how long your calendar is being held on a promise. If either number is worse than you thought, the fix is usually faster estimates and steadier follow-up, not a lower price.
A deposit starts with a call you actually answered. CallTwin is an AI receptionist that picks up every call 24/7 in English and Spanish, takes the caller's name, number, address and what they need done, and texts the job to you. It never quotes prices; that stays with you.
The optional AI Estimates add-on turns those calls into draft estimates priced from your own price book. You approve each one, and the customer signs it and pays a deposit by card from their phone. CallTwin is $500 one-time setup, the first 14 days free, then $99 a month; AI Estimates is $49 a month. See how it works for general contractors and remodelers.
This week, look up your state's deposit rules, work out your up-front cost on your last three jobs, and add a deposit line to your estimate template. If you want every remodel inquiry answered while you're on a job site, sign up for CallTwin or call (856) 204-3643 and we'll set you up on the phone.
No contract. Pay by card, Zelle or Cash App. Not a computer person? Call and we'll sign you up on the phone.