posted
After a recent negative experience, it called to mind the need for a better system for informing my clients that deposits are NOT refundable....EVER.
How do you word the document that the client signs making them aware of your deposit policy? This has never been necessary before, but, times have changed here. I need input to establish a policy.
""Good judgment comes from experience; and a lot of that comes from bad judgment" - Will Rogers Posts: 3487 | From: Beautiful Newaygo, Michigan | Registered: Mar 2003
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Here's an example of the wording we use: TERMS: Order executed and scheduled with a deposit of 60%, balance to be paid on completion, or, prepay in full. Company check(s) or cash accepted. All sales final, no refunds. No warranty offered.
Peace. Deb
-------------------- Bruce & Deb Newton Graphic Lettering San Marcos, CA Posts: 126 | From: San Marcos, CA | Registered: Sep 2001
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posted
There are times that someone pays the deposit and cancels the order before materials are purchased or work begins. Our only inconvemience might be scheduling. I wouldn't hesitate to refund the deposit. Otherwise, I might deduct for any expenses incurred and return any surplus. I'm not sure this has happened, but it's how I hope I'd function. It's how I'd want it done to me.
-------------------- The SignShop Mendocino, California
Making the simple complicated is commonplace; making the complicated simple, awesomely simple, that's creativity. — Charles Mingus Posts: 6720 | From: Mendocino, CA. USA | Registered: Nov 1998
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posted
We don't have wording in our contracts regarding deposits not being refundable. I would think it might set a wrong tone to clients.
In all the years we have done business I have only given a deposit back once... at my insistence. The client's wife was very hard to work with and he waffled a great deal while we were still in the design stage. The project started to get delayed and delayed with changes by them. We got REAL busy about then. Eventually I just decided to call the whole thing off as I didn't feel the effort to keep the job on track was worth it. I didn't make a big deal about it - and just handed ALL their money back - until we could fit the job into our schedule at a later point... which never happened.
We remained friends and the last time I saw him was about 8 years ago. He expressed his regret we hadn't proceeded. Although I felt I had earned the deposit money they gave me doing design work and preliminary work I was glad I had given it back. Except for time I wasn't out of pocket.
When I get a deposit for a job we generally start it pretty quick. In that case, I wouldn't refund monies already spent but the difference only on materials I couldn't use elsewhere.
I think we need to make policies which reflect how we like to be treated in our own lives. I have on occasion asked for deposits back on things I have not purchased. I have forfetted monies on occasion as well when I have had a change of heart in regards to a purchase.
It's about being fair to everyone - ourselves included.
-grampa dan
-------------------- Dan Sawatzky Imagination Corporation Yarrow, British Columbia dan@imaginationcorporation.com http://www.imaginationcorporation.com
Being a grampa is one of the the most wonderful things in the world!!! Posts: 8738 | From: Yarrow, B.C. Canada | Registered: Nov 1998
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This is the first time I have been faced with this. I have a check in the safe ready to issue a refund to them. I did deduct my restock fees from the deposit. My dilema now is when they are ready to pull the trigger on this deal, do I want the job? Guess I'll make that decision when it happens. In the meantime, it's on to the next.
[ April 17, 2005, 02:39 PM: Message edited by: Rick Beisiegel ]
""Good judgment comes from experience; and a lot of that comes from bad judgment" - Will Rogers Posts: 3487 | From: Beautiful Newaygo, Michigan | Registered: Mar 2003
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posted
I had one bad experience with a guy who is still to thid day, a good repeat customer. We contracted on a sand-blasted sign and paid half-down. In the middle of the contract he decided to go with a totally different sign from another place!
The down-payment he'd given me had been spent and covered a 100 mile round trip to buy & pay for 2x redwood boards and woodworker's fee for planing and gluing up a 3'x7' panel, so I was out money & time delivering and picking that up, plus a roll of sand-blast mask I had purchased. As near as I could figure, he actually owed me at the very least 1/2 of the down-payment just in time and labor to that point, but he demanded that I close the contract and sell the peice to someone else, then refund him in full.
It was several months before I was able to sell it and finally sold a 3x5. This guy then wanted his entire down-payment back. He expected me to add HIS previous costs from HIS canceled job to the new customer's job! I refused to do this and argued that he was not going to dictate how to charge my customer's or run my business and that I charged my customer's fairly for THEIR work!
He was so adamant, rude and intimidating that I did give him all his down-payment back just to shut him up. By the way, he's the same guy who I mentioned on another post as the one who brag-lied that he was the whole reason I was in business...
That happened during my first 5 or 6 years of business and taught me a lot about the 'catty-cut-throat business practices of some people. His behavior only reinforced my desire to never be like him and to make sure that all my business practices are always 'on the table' and conducted honestly and fairly for all parties involved.
Oddly enough, I have more trouble with such filthy rich people than any other financial class of customers...mabey they just can't stand it because I'm unimpressed when they flash their greenery and refuse to treat them differently from others...
When I get filty rich, I'm not going to be cut-throat & arrogant like that . . .
ANYway... I always go over and over so many details, and review them with almost every customer and make sure they know EXCATLY what is & is'nt going to happen, plus signatures, that I never have to explain that something is 'non-refundable'.
I have never had another bad situation arise again.
I would also like to add that in 15 years I have only ever 'not been paid' twice...one was a $10 car tag about 10 years ago a girl never came and got, and one was a $45 For-Sale 18x24 never picked up. I changed the phone number and eventually sold it to someone else tho'.
In 15 years I've only ever had two customer's bounce checks. One man personally brought me the $900 in cash and ALSO covered all my bank service charges he had induced. The other person made their check good within 2 days of my call, (and this one did'nt cause me any bank service charges)
I guess I AM kind'a bragging because I believe with my whole heart that the Lord has taken care of me & this business since everything I have is His, and He's just loaning it all to me to make a living with . . .long as I do it how He wants it done, all is well . . . .He is the bank.
-------------------- Signs Sweet Home Alabama
oneshot on chat
"Look like a girl, act like a lady, think like a man, work like a dog" Posts: 5758 | From: "Sweet Home" Alabama | Registered: Mar 2003
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posted
No such thing as a deposit. 50% of payment at order and 50% at delivery or pickup.
-------------------- Mario G. Lafreniere (Fergie) J&N Signs Winter did show up! Posts: 1257 | From: Chapleau, Ontario | Registered: Jun 1999
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