Deposit vs. Retainer
A deposit is an upfront part-payment for one job. It counts toward that job’s final invoice. A retainer is money paid in advance to hold your availability over time. Mixing them up confuses ongoing clients.
What it means
A deposit belongs to a job you have already quoted. Typical examples are 25 to 50% upfront on a kitchen remodel, taken straight off the final bill. It covers your materials and protects your time before you start. It folds into that one invoice when the job is done.
A retainer works differently. A client pays it to guarantee you are available. That might mean a set number of hours a month, or first call on their work. This happens before there is a specific job to quote. You usually draw it down as work happens, or refresh it each period whether or not it was fully used. So write the terms down clearly.
A remodel client pays a $1,200 deposit against a $4,000 quoted job. You subtract it from the final invoice. A separate maintenance client pays you a $500 monthly retainer to have you on call. You draw it down as call-outs happen through the month.
Calling a job deposit a “retainer” in the quote, or the reverse. A client may think they paid a retainer for ongoing access. They get a shock when you treat it as a one-off deposit that is already used up.
See also
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- tool Materials up-front check Enter your quote price, your materials and parts cost, and your planned deposit. Add the days between paying your supplier and getting paid. The tool shows your own cash in the job and whether the deposit covers it.