Kitchen companies - deposits and risks

Luzy

Hi
I'm getting a new kitchen.
Have had work done before by Newcastle designs and always very impressed. HAppy to go with them but concerned incase they go bust between deposit and delivery. I have no reason to believe this will happen, and think their business model is good - but it does rely on deposits for cash flow.

Any recent experience or views on this?

Tippex

Pay your deposit by credit card I think you would be covered but would need others more in the know to confirm.

jor el

Paying with credit card will be the only protection you'll get. Apart from that, try and get the kitchen delivery date to be as soon as possible. The longer you leave it from deposit to delivery, the greater the chances of a business going bust.

Luzy

Thanks. I asked this morning actually for the date to be brought forward and he could only give me a week earlier as they are busy til then. I think this is prob a good sign as assuming it's true then thy have money coming in. Had thought of the credit card thing but they don't do credit cards.

Maybe I'll follow his van for a few days!!!!

dlambirl

What makes you think that the kitchen company could go bust?

Not every company in ireland is on the verge of bankruptcy you know

EKRIUQ

Isn't this just a case of how the Irish mentality, one kitchen supplier closes down everyone thinks there all going too. One shop is finding it difficult, all shops are finding it difficult.

Even people in no threat of loosing their jobs are majorly cutting back because people are loosing their jobs.

Luzy

And I agree with you - just naturally nervous in the current climate about companies which rely on deposits for cash flows - if there is a slow down then they may run dry and the banks are not offering overdrafts. The fact that people are nervous about making commitments at the moment could be enough to dry up some companies.

I've chosen this company because they ahve a good track record, they have done a superb job for me before, their market seems to be the middle ground steady space rather than eg new-fit apartments etc which is what I think has floored (sorry about the pun!) Jim Langan and other similar operators. so they are not cowboys or fly-by-night.

Anyway I have made some enquiries this morning and am happy that they are fine and busy at the moment and I'm going ahead. I will let you all know when it's finished. And re workmanship and organisation I have found Newcastle design to be absolutely brilliant - that's why I've picked them.

I also think it's up to us who can to keep going with confidence and spend money, keep things going.

So even though we will be poorer with all the levies and taxes, our savings will cover this.

(Ronan- hope if you see this you understand the motives are honest!! Keep up the good work!)

Sponge Bob

Big ticket items like kitchens or large amounts of furniture .

1. Pay by credit card ...not MBNA as they do not help with chargebacks .
2. Pay by escrow , money goes to his solicitor ONLY to be released when the kitchen is actuallly delivered to your house
3. Get personal guarantee from owner for deposit ...thats separate from the company so if the company goes bust you may chase the owner personally ...but no good is the person is a sole trader

One of those should protect you

If they refuse all three, bad sign . Walk away !

Luzy

Hey sponge bob, great suggestions! I'm going for number 3. do you have a suggested wording I can use - so I can have it typed up and ready to sign?

He doesn't do credit card payments and the escrow is maybe a bit heavy - especially since the deposit is his cash flow which is fine if business is steady.

Suggestions welcome.

Sponge Bob

something like .

' I need reassurance against non performance in the form of a personal written and signed guarantee from the manager that I shall be reimbursed in full by him, personally, in the event of non performance by company x .

If he does not have the confidence to give such a personal guarantee then I shall not purchase .'

eth0_

No manager would give that assurance even if the company was doing well - why should he personally take the hit on the companys behalf?

I guess you have to take a chance, OP. As kitchens are made to measure they have to take a deposit.

dlambirl

+1

Take the chance OP and try and get them to install it as soon as they can

What date did they give you??

Luzy

[EMAIL="I@m"]I'm[/EMAIL] going to go ahead, having asked around. The guy selling is the owner so I may still ask for the personal guarantee. I understand that a manager couldn't give such a guarantee but an owner can.

In fact I hope I haven't raised an unnecessary scare on here.

I think we all need to keep businesses going and I look forward to giving a good recc to this company when I have my nice new kitchen ( I think I will be spending a lot of time in it for the foreseeable future!!!)

WHU

People never seem to worry about going into a sofa company and paying in full for a sofa that they still have to wait for.
There seems to be more concern over kitchens, can someone explain why?

irishshogun

Had a hell of a time with a Limerick based kitchen company called Lets say Dine and Pesign, had to chase then for nearly 4 months to get my kitchen in, and totally watch over it when it finally came cos parts were unfinished and had to be returned to be refinished. Never hand over money in advance. If they're solvent they can complete with no more than a 40% deposit. Dont want to scare you but it does happen and I wouldnt like to wish our experiance on anyone.

Mick Bloggs

Hi Luzy, I’m involved in a well known long established company in the industry & of course from a consumer’s point of view you are right to be concerned about handing over money before you see the product. The bigger question however is how much are you being asked to part with at the point of delivery & how much (if any) is retained by the client until job completion? For some reason everyone ranting & raving about all the big discount type stores & indeed most of the exclusive big brand names here are happy to concede to payment up front before the goods are even shipped let alone installed!!!! Deposits are necessary when it comes to any be-spoke product not for cash flow reasons but because the goods are being manufactured for you & if a client defaults for whatever reason after manufacture they job lot is no use to anyone else. Holding the deposit with a firm's solicitors is a good idea for peace of mind however it will most lightly be stated clearly that the deposit fund will be released prior to delivery. All said & done the best guarantee that the job will be complete is to look for a long established company with a good reputation that will provide you with a detailed written contract for the job including a time table for completion.

ejmaztec

Some people build their own kitchens - it's not that difficult and there's no trouble with deposits.

Grandma27

Hi Luzy,

So, did you get your kitchen in '09 and was it great? Thinking of going with Newcastle Designs myself and, as it's now 2012 and they're still around, I guess they are as reliable as they seem to be AND that my (substantial!) deposit will be safe?

Somebody please calm my nerves!

Thanks,

dudara

If you paid your deposit via credit card, then you have security. Cash or other means of payment means that your money can disappear if a business folds.

As Luzy hasn't been online since Sept 2009, I'm going to close this thread, please contact me if you want it reopened to post in it.

dudara