How Much Deposit to Require for a Service Job
Most service businesses require a 10–30% deposit, scaling with job size and how much you're spending on materials before the job starts — a small job might carry no deposit at all, while a large material-heavy job (fencing, decking, painting) can reasonably ask for 30–50%. A flat deposit amount works better than a percentage for smaller, more predictable jobs where a percentage would round to an oddly specific number.
The general range: 10–30%
10–30% of the total job cost is the common range for most service work, with the number scaling based on two things:
- Material cost. The more you’re spending upfront on materials, the more the deposit should cover.
- Job size and lead time. Larger jobs booked further in advance carry more risk of a late cancellation, which justifies a higher deposit.
When to go higher: 30–50%
Jobs with substantial upfront material purchase — fencing, decking, painting with premium product — reasonably ask for 30–50%, since you’re the one financing the materials until the customer pays the balance.
When a flat amount beats a percentage
For smaller, fairly uniform jobs, a percentage can produce an odd number that’s harder to communicate cleanly. A flat deposit ($50, $100, $150) is simpler to quote and easier for a customer to budget for on a predictable job size.
Small jobs may not need one at all
Not every job justifies the overhead of collecting and tracking a deposit. A short, low-material job with minimal cancellation risk is often fine with payment due entirely on completion — reserve deposits for jobs where the upfront cost or lead time actually warrants one.
State the cancellation policy at the same time
Whatever deposit you require, decide and state your cancellation policy up front — refundable, non-refundable past a notice window, or applied as credit toward a rescheduled date. Deciding this in the moment of a cancellation, rather than in advance, is where deposit disputes start.
Frequently asked questions
Should every job require a deposit?
Not necessarily — small jobs with little material cost and short lead time often skip it entirely, since the administrative overhead of collecting a small deposit can outweigh the protection it offers.
Percentage or flat amount?
Percentage scales naturally with job size and is easier to apply consistently across a range of job values. A flat amount is simpler for small, similarly-sized jobs where a percentage would just be a strange-looking number.
Should the deposit be refundable if the customer cancels?
State your policy up front rather than deciding case by case — many operators make it non-refundable past a certain notice window, since materials may already be purchased or the schedule slot already turned away other work.