Equipment down payment

[James007]

Hello guys!

I have some questions for those who have built carwashes and need to find out the proper way to avoid time and costly mistakes when putting a large down payment. Would like to know the best safe/legal way to do this process. Any feedbacks are greatly appreciated.

(Is this the most standard process)??

50% of total price of equipments
40% once the equipment is delivered onsite
10% before the car wash grand opening

 

[soapy]

Companies have always wanted a site draft as sson as the equipment arrives at the site. Most of the time for me I do not have to pay for the labor to install and the final 10% at time of delivery. Each distributor and manufacturer will handle it different.

 

[pitzerwm]

Your contract normally is with the distr. Usually there are no problems with the equipment, its the distr. that you want his balls in your hands. Make sure that contract is tight and that you have talked to a number of his past clients.

I'm close to getting the distr. survey software written, so we can start rating them like Consumers Reports.

 

[Reds]

I once gave a distributor 27k downpayment on two playgrounds for my restaurants. They were a reputable supplier and approved by BK corp. One week before delivery they went belly up and I could not get my deposit back. Ever since I have been very reluctant to give money up front without getting something tangible. I understand that the distributor needs to lock you in so that you don't disappear and leave him with the ordered equipment. But that should be a two way street and somehow you need protection. Even a contract is no good if the dist. goes bankrupt. I would express my concerns to the distributor and talk to my lawyer.

 

[MikeV]

In most cases, the distributor has to send the manufacturer a deposit on your equipment to start the process. A small distributor, like my self doesn't usually have that kind of reserve capital and needs your deposit to make his deposit. As long as you feel comfortable with your distributor, you shouldn't have a problem with giving him a deposit...but do check his history.

 

[Dean Taylor]

In some cases, we have the truck-line collect a COD check for final payment when they deliver the equipment on-site. Typically, a certified cashiers check. That way, the customer has his equipment safely on-site and we have our final payment in-hand.

Some, but not all truck lines will do this. We use R & L alot and they have been good about it.

 

[James007]

12 weeks ???

Hi everyone,

My distributor said once the contract is signed and the 50% deposit is given then it will take 8-12 weeks before getting the glass building and equipments. Does it normally take this long to get everything to set up on site? Your advice is greatly appreciated.

 

[Red Baron]

I think mine said 4-6 weeks, but it didn't take that long.

I can't imagine him dragging his feet; I don't think that, with a 50% deposit, there is any profit in it for him until the equipment is delivered.

 

[MEP001]

Is the building a "stock" design or is it being custom-built for you? It's always going to take longer for something built to order, and they aren't going to start work on it until it's been paid for.