Every experienced HVAC contractor has a story. You order the equipment, block off two days for the job, show up at 8am — and nobody answers the door. Or they answer and tell you they went with someone else. Or the cheque bounces.
The deposit is the single most effective tool for eliminating this problem. Here's why it works and how to collect it without the awkwardness.
Why No-Shows Happen
Customers who ghost you after accepting a quote usually fall into one of two categories: they found a cheaper option and didn't tell you, or they were never fully committed in the first place.
A verbal "yes" costs them nothing to walk back. An accepted proposal with a deposit attached is a completely different commitment. The moment money changes hands, the customer has real skin in the game. They've chosen you, and backing out now means losing that money.
Deposits don't just protect your schedule — they filter out the people who were never serious to begin with. The customer who complains loudly about paying a 15% deposit is often the same customer who would have no-showed on install day.
What Percentage to Charge
Most HVAC contractors charge between 10% and 30% of the job total as a deposit, with 20% being common for equipment-heavy replacements.
The right number depends on your equipment costs and how much of the job is materials vs. labour. If you're ordering a $3,000 unit before the install, you want at least enough deposit to cover your out-of-pocket cost on the equipment if the job falls through. On a $6,000 furnace replacement, a $1,200 deposit (20%) covers most of your parts exposure.
For smaller service calls — tune-ups, diagnostics, filter changes — deposits are usually not worth the friction. Reserve them for jobs where you're ordering equipment or blocking a full day.
How to Handle Pushback
Some customers will ask why they need to pay upfront. A short, matter-of-fact answer is the most effective response:
"We collect a deposit to cover equipment costs before we order your parts. It comes off the final invoice."
That's it. No apology, no lengthy explanation. Most customers accept this immediately — it's standard practice in renovation and contracting industries. If someone refuses entirely, that's useful information about how the rest of the job will go.
What you should never do: waive the deposit to close the job. The customers who push hardest against deposits are often the most likely to cause payment problems later.
How to Collect It Without the Awkwardness
The old way: call the customer, read out your bank account number, wait for an e-transfer that may or may not arrive.
The better way: build the deposit into the quote so the customer can pay it online when they accept.
When you send a proposal that includes a deposit requirement with a "Pay Now" button, two things happen. First, the acceptance and payment happen in one step — no back-and-forth required. Second, the customer experience is polished and professional, which builds confidence in you before the job even starts.
HVQuote handles this automatically. You set your deposit threshold and percentage in settings (for example, require a 20% deposit on any job over $1,000), and every qualifying proposal automatically includes a deposit payment link. When the customer accepts and pays, you get notified and the job is confirmed.
Deposits and Cash Flow
Beyond the no-show protection, deposits meaningfully improve your cash flow. If you're installing two or three units per week, collecting 20% upfront means you're carrying positive cash before the work even starts. Equipment costs are covered. You're not floating a $6,000 parts order on your credit line.
For contractors growing quickly, this can be the difference between a healthy business and a stressful one. Money in before the job happens changes everything about how you run your week.
Start small if you're nervous about it — set a $2,000 threshold and a 15% deposit. Track whether it affects your close rate. Almost every contractor who tries it reports no meaningful change in close rate and a significant improvement in job commitment and cash flow.