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Is it reasonable for silver jewelry contract factories to require a deposit

Is it reasonable for silver jewelry contract factories to require a deposit
W: I have been working with the jewelry factory for a long time. Previously, the order quantity was very small and payment was made after receiving the bulk goods. Now that the quantity is large, is it reasonable for them to require a deposit first?

D: The price of jewelry materials will change, so when customers place an order, the jewelry factory will adjust the price of the jewelry reasonably based on the material price of the day, and purchase the silver required for the order in the first time. If the quantity of silver jewelry orders is large, the procurement cost of silver will be high, sometimes tens of thousands, sometimes hundreds of thousands. A good silver jewelry factory will definitely have many customers and orders, so the cost of purchasing silver will naturally be higher. So it is very reasonable and necessary for customers to pay a deposit when placing an order.

On the other hand, due to the relatively high cost of silver jewelry, if customers no longer need it for some reason after the jewelry factory completes the order, it will inevitably cause significant losses to the jewelry factory. Therefore, collecting a deposit is also a constraint on customers to prevent them from easily canceling the order.

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