Does anyone charge late fees on clients installments? I always take a down payment, and then sometimes, depending on the cost of the cake, I'll allow an installment between the down pmt and the final payment.
Do you guys charge late fees? And if so, how much are they and do you allow a grace period?
Thanks!
No, I don't charge late fees.
It's 50% deposit on all orders $200 and up, orders under this amt are paid in full at time of booking. Balance is due 30 days before event.
I don't have a grace period either. I guess I'm lucky...all of my clients pay on time, most pay before the 30 day cutoff.
I have a $100 minimum order...I think when you're dealing with clients that can afford to spend $100 on a 9" cake you don't get the sort of people you need to chase around for payment.
There's something to be said for marketing to the higher end clientele.
I charge late fees on wedding cakes. If the final payment is not submitted 30 days before the event, they get charged $25 per day it is late (and I send reminders 1-2 weeks before the final payment is due). I have easily charged $150 in late fees in the past year....
Nope.
Either pay for your cake on time or you don't get a cake. End of story.
What do you all do if a customer doesn't pay the balance and you have started some work on the cake? Or you just don't start any of it until you have the whole thing?
This is the main reason that I have final payment due 30 days before the event...it gives me plenty of time to make gp flowers or other elements that need time to dry once I have payment in full in my hands.
My 50% deposit covers any special order items that I may need for the project.
If they don't pay the balance the order is canceled, no money is refunded and I don't lose anything if I had to buy a special pan or mold because I've paid for it with money from the deposit.
This is why I don't understand people who have final payment due 2 weeks before the event. In my opinion and in my experience it's not enough time.
Most if not all of the posts we read on here about decorators not receiving the final payment in time seem to have the final payment due 2 weeks before...then they're panicking because they don't have their money and time is running out.
I choose to give myself some breathing room...I don't enjoy being stressed and I do everything I can to make sure I'm not.
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