Does Requiring A Larger Deposit Discourage Cancellation?

Business By MariaK38 Updated 16 May 2010 , 1:06am by momma28

MariaK38 Posted 14 May 2010 , 4:19pm
post #1 of 11

Hi, all! I just got a cancellation for my largest order ever. The bride ordered the favors on Wednesday, paid the non-refundable deposit, and cancelled two days later. Her fiance wanted to "go in a different direction." He'd better go fast, because the wedding is next week! So it was a last minute order, which normally I wouldn't take, but I didn't have much going on for that week, so it wouldn't have been a big issue to get it done. Normally the deposit of 20% holds the date, and the balance is due 10 days before the event. Since there wasn't 10 days between the order and the event, I just told her she could pay the balance upon delivery.
I'm wondering if a larger deposit would have kept her from cancelling. Do you find that to be true, or doesn't it matter? Do you get more cancellations with a smaller deposit, and less with a larger one?

Thanks! Maria

10 replies
tiggy2 Posted 14 May 2010 , 4:28pm
post #2 of 11

For such short notice I would require payment in full at time of order.

KHalstead Posted 14 May 2010 , 4:29pm
post #3 of 11

I've never had a cancellation yet, I charge 30% down for a deposit with the rest due 3 weeks before the wedding date.

If there is less than 3 weeks before the date when they call, 100% of the payment is due at the time of "booking" and that is ALL non-refundable!

I think you should change your policy for when they book so close to the date, they shouldn't get MORE wiggle room when they book late, they should have LESS!

lilrhodybaker Posted 14 May 2010 , 4:33pm
post #4 of 11

That is a good question!!
I would think that if you upped the deposit amount, it would deter someone from cancelling at the last minute. However, there are always gonna be "those" cases where you just have to go with the flow, this sounds like one of them.

To only order your wedding cake or favors a week before the wedding is cutting it a little close. This has "strange" written all over it IMHO!!!

kermitncupcake Posted 14 May 2010 , 4:43pm
post #5 of 11

Nothing to do with deposits, but do you think theyve called off the wedding and she was too upset to tell you???

indydebi Posted 14 May 2010 , 5:03pm
post #6 of 11
Quote:
Quote:

Does requiring a larger deposit discourage cancellation?



Ab-so-Freakin'-Lutely!!

I booked a wedding cake out from under another bakery because their deposit was low enough that the bride was willing to walk away from it. Bride was more impressed with what I could give her without the nickels and dimes for every little thing and even with losing the deposit, she was saving money with me. (Other bakery was charging her $65 to wrap a ribbon around the base of 3 tiers and required her to provide the ribbon. Seriously, my mouth hit the floor when I heard this.)

And before someone asks, yes they will pay it. On my catering invoices, I'm dealing in thousands of dollars and required 50% non-refundable down. They paid it.

MariaK38 Posted 14 May 2010 , 5:11pm
post #7 of 11

could be they called it off. I guess alot could happen in two days!

Another question... will a larger non-refundable deposit discourage people from doing business with you? What do you all think?

Maria

indydebi Posted 14 May 2010 , 5:15pm
post #8 of 11
Quote:
Originally Posted by MariaK38

Another question... will a larger non-refundable deposit discourage people from doing business with you? What do you all think?




Quote:
Originally Posted by indydebi

And before someone asks, yes they will pay it. On my catering invoices, I'm dealing in thousands of dollars and required 50% non-refundable down. They paid it.




Deposits ... and large deposits ... are not uncommon at all in this industry. 25% to 50% deposits are the norm. When I sold wedding invitations years ago, I required a 60% deposit ... never got any flack about it.

cakesdivine Posted 15 May 2010 , 10:36pm
post #9 of 11

Not only will a large deposit deter the cancellations of orders but also weed out those who aren't yet serious about committing to a baker/cake artist. And if they are less than a month from the event they must pay in full in cash or pay pal.

catlharper Posted 15 May 2010 , 11:41pm
post #10 of 11

My contract reads a 50% deposit is needed to hold the date and full payment by one month before the event. Once someone puts down that kind of money they rarely back out unless the wedding is called off.

momma28 Posted 16 May 2010 , 1:06am
post #11 of 11
Quote:
Originally Posted by tiggy2

For such short notice I would require payment in full at time of order.




I agree, anything under 2 weeks and I need a money order or cash up front (no bouncable checks thank you) before I even put it on my schedule.

Plus 20% is a really low deposit IMHO. I have a 33% non refundable and I know that is lower than alot of people who require 50%

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