Trade Show Exhibit Display Booths

first time trade show, should I ask deposit from buyers? or how?

I am going to exhibit our fashion accessories on a trade show for the first time. If customers place orders with me then how should i ask them to pay? I mean I'd like to ask them to pay a deposit because otherwise I wouldn't have enough money to buy the material and to manufacture them. Do sellers normally ask for a deposit? if yes how many percent is appropriate? otherwise what do other sellers normally do? I heard some sellers don't even ask buyers to pay anything, they just let the buyers to sign a paper and then start to produce for them, finally after few weeks when the shipment is ready they ask the buyer to pay. But I don't think I can do this because if i get lots of orders then I wouldn't have enough cash to produce them. and also if some customers just cancel the orders then it would be a big loss for me as we are a new business. Please anyone advise? Thanks a lot! Just to add some more details: our products are leather goods(bags and cases), they are usually quite expensive to produce, does anyone have similar experience at exhibiting leather goods?

Public Comments

1. Don't take a deposit, but tell the buyer there will be a pro forma invoice sent out before you manufacture the order. Don't make the orders for the people who don't pay.
2. I don't know all the answers to your questions and I have never done anything like that but I would say it would be fair for 50% down on all new orders and 10% for a regular customer, however you would define that!
3. I like Ligia's answer, and it is a good answer depending on what you are selling. I occassionally sell handmade jewelry at trade shows. Depending on the show, I usually do a 20% non-refundable downpayment invoicing on orders, sending the invoices electronically each night (make sure you collect an email address) with my manufacture policy clearly stated at the top of the invoice (no production until receipt of money) and allow payment through Paypal. I haven't done that for a while, however Paypal or other, similar options are great in that the funds are handled through a disinterested 3rd party, I am not paying credit card handling fees and it's very, very secure. Good luck to you.
4. If they want to "commision" a piece then they are entitled to pay for it either up-front,deposit or an agreed contract verbal or otherwise.Good luck
5. You could give buyers who put down a deposit a discount. If you don't have the start up capital you don't have much of a choice but ask for some kind of deposit. But ask around and see what other vendors do. Buyers are sometimes worried if your business is new to leave deposits and make orders.