Also, the deposit is sometimes used to order blank goods or supplies used to print the order.
For the record, I've never been stiffed for design services or completed merchandise, but more times than I'd like to admit I've done design work, prep work and/or press samples without getting a partial payment only to discover the interested parties weren't serious. So basically -- because I was trying to be nice or helpful, or to make the order happen quicker -- I did work that I couldn't bill for. I'm a sucker. I admit it.
It's cool, though... I eventually learned my lesson.
And it works pretty well for you, too: you get to pay 50% of the order (instead of having to pay everything up front), and then you have a week or two to gather up the rest of the money, and then when you pay the balance, you get some awesome merchandise from me. Okay, maybe I'm just trying to hype this up, or put a positive spin on it, because this is fairly standard practice for a lot of people/businesses that provide services, such as web design, illustration and screen printing. And yet I often feel ashamed having to ask a customer to pay a deposit to prove they are committed to the order.
I heard a story recently of a business delivering $5,000 worth of goods/services (after paying their employees something like $3,500 for their work on the project). They didn't insist on getting paid up front, and 2 months after delivery the customer had still not responded to the business at all. They may never get paid for that order. Ouch. Now, I don't feel so bad about all those times jumped the gun and started work on an order before getting a partial payment up front and I definitely shouldn't feel ashamed for asking for a symbolic gesture assuring me that I'm not wasting my time and resources. Hmmm... I wonder if I should ask for an engagement ring instead...
"Mr. and Mrs. Paying Customer... Roger L. Paying Customer nee Moore... Do you think I should keep my maiden name...?"