I had a customer call today that placed an order a few months ago for a wedding cake. She has made a couple payments a total of 400.00 and she cancelled. Her daughter called off the wedding. Now I have to refund 350.00. I charge a 50.00 non refundable deposit.
It was a 1000.00 order lost and now I have to give back money. Now Im depressed.
I would be too! I think I am for you! Sh*t that would so suck. I get a one-third non refundable retainer--none of the payments are refundable. Feels better to me. Consider increasing yours maybe.
O that sucks!!!!! Major bummer. So sorry to hear it.
Time to change your contract. All payments are non-refundable in mine.
This is a good lesson in WHY we charge a deposit. It's not to hold the date or to show they are serious. A deposit is to cover us when the order is canceled. It is to compensate us when we DEPEND on this booking to operate our business and the client pulls the rug out from under us.
Well, heck ... just read my blog on this very issue. It explains it. http://cateritsimple.blogspot.com/search/label/deposits
I do charge a non refundable deposit. I also do not refund any payments within 30 days. I think Im going to have to increase my deposit. This wedding was not till August. I offer brides the option of making payments on their cake, but payment in full is due within 14 days of the event. I cant see keeping all payments on a cake. Even though it hurts to give it back. I think I need to require a larger non refundable deposit.
My deposits are 50%. On a catering invoice, that gets to be a pretty hefty sum.
I charge a 33% non refundable deposit and require payment in full 2 weeks before. No payments are refundable. I depend on that money to keep going.
I charge a 25% non-refundable deposit and all payments due 21 days prior.
Hmmm, will have to rethink how I do things too. I haven't had to give a refund yet, but I suppose the day will come. I've not written a contract out yet either. Just word of mouth etc. Now that could be dangerous.
Thanks for the discussion on this, it has made me think a thing or two!
You should definitely require a 25-50% non-refundable deposit.
i'm not in the business, but I know enough to let you know verbal contracts are hard to prove. You don't want to get stuck paying back, even after they have consumed, or cancelled. watch people's court more often. =)