Painting Business - Should I Use Contracts For My Painting Business?

As a residential painting business owner (since 1991) I never have used contracts. I have always secured a deal with a down payment. I know from past sales experience that if you get a down payment the customer will not cancel.

Getting a third down has always secured an agreement between myself and the customer. Now, if I wasn't starting the job for another week yet, I wouldn't ask for any money until I actually started the job. Some customers have offered me cash as much as a month in advance and I said no. (I would hate to spend the money before actually doing the work.)

Now I know there are horror stories of someone paying a contractor half down and the guy takes off on them, never coming back to do the actual work. But that is not me. I live in the same town I work in and besides that, I pride myself in being an honest businessman.

As of today, I have never been ripped off by a customer either. Have I been lucky? Was the customer lucky? Let's put it this way. I don't paint for anyone who cannot afford my service. A down payment "QUALIFIES" the customer as being someone who has the money.

And when it comes to my credibility, many times I am referred to them by another satisfied customer, so I gain their trust as well. I also supply a new customer with work references if they ask. Most people I paint for though seem to trust me so it all works out well.

So when should I as a painter use a contract? To me, it would be wise to use a contract if you have employees. This way, the contract guarantees you will get paid so that you can in turn, pay your employees. Especially on a larger job. And it also guarantees that the work will be completed as described in the contract. This agreement gives you and the customer peace of mind.

But for small [tag]painting businesses[/tag], (1 - 2 man operations) a promise and a handshake plus a third down payment works out nice. It keeps things friendly between the painter and the customer. Also, if the customers adds a bathroom, dinning room or a spare bedroom into the deal, you don't have to whip another contract out on him or her.

On my Paint Like a Pro Estimating and Advertising CD I supply a ready-to-print-out contract form for painters who would like to use contracts.