What To Do? Should I Refund Or Give A Discount

Decorating By Rochelle1 Updated 9 May 2008 , 5:37pm by Rochelle1

Rochelle1 Posted 4 May 2008 , 5:07pm
post #1 of 17

Did 2 bithday cake for a repeat customers. They have been with me for years. Both cakes got damaged during delivery and one cake was dry. I feel so guilty but can not afford to give money back. I am thinking of doing a small cake and offering it to them as compensation. Do you think that is good enough? or should I just offer them a discount with there next order?

16 replies
HerBoudoir Posted 4 May 2008 , 5:09pm
post #2 of 17

When you say get damaged during delivery - were you delivering them, or did they pick them up?

leily Posted 4 May 2008 , 6:45pm
post #3 of 17
Quote:
Originally Posted by HerBoudoir

When you say get damaged during delivery - were you delivering them, or did they pick them up?




I am wondering this also.

personally since they have been customers for so long and are bound to order again i would offer a discount on their next order or two.

Rochelle1 Posted 4 May 2008 , 6:53pm
post #4 of 17

I was the one delivering. So it was my fault

HerBoudoir Posted 4 May 2008 , 10:22pm
post #5 of 17

Then I'd say yes, you need to bite the bullet on this one and refund.

wgoat5 Posted 5 May 2008 , 10:41am
post #6 of 17

What I don't understand is... did she pay you in advance for a birthday cake and you have already spent it? I always keep "their" money till delivery and I know all is well with the cake. That would save from you having to dig into your own pocket.

grama_j Posted 5 May 2008 , 11:22am
post #7 of 17
Quote:
Originally Posted by wgoat5

What I don't understand is... did she pay you in advance for a birthday cake and you have already spent it? I always keep "their" money till delivery and I know all is well with the cake. That would save from you having to dig into your own pocket.




That would be great IF you can afford all the supplies you need for the cake.....Sometimes I can, sometimes I can't..... icon_sad.gif

wgoat5 Posted 5 May 2008 , 11:25am
post #8 of 17

Completely understand that point Grama!!! icon_smile.gif

HerBoudoir Posted 5 May 2008 , 5:51pm
post #9 of 17

There's a general accounting principle that states you can't recognize revenue until you've delivered the good or service in it's entirety....so if you're pre-paid for a cake, the profit isn't technically yours until you've delivered as contracted.

Really, it's not a bad policy to follow.

michellesArt Posted 5 May 2008 , 7:22pm
post #10 of 17

did they say anything about the damage or the dry cake? (i understand that they did, how else would you know the cake was dry-unless it was like that when you decorated it but you wouldn't serve it to them like that i'd assume anyway...) i'd give them some kind of voucher/discount as a sign of good faith (unless they ask you for a refund) that you appreciate that they've been longstanding customers (it would spread the word too that you care that your work is upstanding and you have high standards-that would definately get around) sorry for the long post icon_smile.gif

Kitagrl Posted 8 May 2008 , 5:09am
post #11 of 17
Quote:
Originally Posted by grama_j

Quote:
Originally Posted by wgoat5

What I don't understand is... did she pay you in advance for a birthday cake and you have already spent it? I always keep "their" money till delivery and I know all is well with the cake. That would save from you having to dig into your own pocket.



That would be great IF you can afford all the supplies you need for the cake.....Sometimes I can, sometimes I can't..... icon_sad.gif




The cost of the cake doesn't cover the supplies? Or are you still getting started to where you have to buy pans and stuff too?

Rochelle1 Posted 8 May 2008 , 6:27pm
post #12 of 17

I have been doing my business for a few years well. It has not been easy or profitable (my family subsidies the business most time). Since last year there is a slow increase because i have been using different methods to get my name out there. I am still not able to make ends meet but it is my first love.

I knew one of the cakes was dry becuase made 2 cakes from the batter and the other person( a family friend) said it was dry. I called her and offered a discount for the damaged cake. She said the cakes were ok, one was a bit dry but had no complaints. Being as she did not really seem dissatisfied I offered her a discount on the next cake instead for the dammaged cakes

Rochelle

CakeDiva73 Posted 8 May 2008 , 6:34pm
post #13 of 17

Totally setting aside what can be afforded and what cannot, as the customer, if I ordered and paid for cakes and one was damaged and the other dry, I feel a partial, if not full refund is due. Also, I agree with the other posts about how the money shouldn't have been spent until the cake was delivered but who thinks of that? And if money is tight, you literally have to spend the pre-payment on the ingredients!

I, honestly, would give them a full credit on a future cake for the damaged one (providing it wasn't able to be repaired) and a 50% off your next cake to compensate for the dry one. At least you don't have to give them the money back. You will have to purchase new ingredients for these other cakes but your time is free (haha).

Forgive me if this is coming off as harsh, it is not meant to.....I have 4 kids and and have eaten Ramen for weeks to make it from one paycheck to the next so I really understand the money situation. It's just that I also understand the consumer situation and they spent their hard earned money on cake so they were probably disappointed too. icon_sad.gif

I am sending many cake fairies your way!!!

mbh724 Posted 9 May 2008 , 11:36am
post #14 of 17

I feel for you but, honesly, they both deserve a refund.

Rochelle1 Posted 9 May 2008 , 3:24pm
post #15 of 17

I am not charging for the other cake. Like I said before I offered her a discount for her next order for the damaged cakes. As I also said before she said it was ok and did not have a complaint. I was the one worked up about it not her. It seem kinda of silly then to give her back her money. So I offered her a discount on her next order for the damaged and she was ok.

mbh724 Posted 9 May 2008 , 3:31pm
post #16 of 17

Rochelle - I just have to tell you I looked at your photos and you do really fabulous work. I saw the cake with the string work and I was amazed. Your cakes are so beautiful. Perhaps you're not charging enough.

Rochelle1 Posted 9 May 2008 , 5:37pm
post #17 of 17

Thank You mbh724

I live in Jamaica and the type of clients I presently have can not really afford to spend lots of money on cake. When to purchase and provide food and party supply can be so expensive. I have to compete with supermarket bakeries that gives them some times nearly half my price. Because they can afford to buy in bulk and they also use cake mixes.

I have begun to target more high end customers for my speciality cakes and wedding cakes. With the help and advise I have gotten here at Cake Central and my family and friends things are looking up icon_smile.gif

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