Should I Stick To Contract Or Play Nice?
Business By lexi55033 Updated 4 Nov 2011 , 8:35pm by cs_confections
"This email is to confirm that, per our phone conversation on (date), you are cancelling your cupcake order for (date). Per our signed contact, all deposits are non refundable and non transferable:
(copy and paste the exact wording from your contract here)
We wish you all the best and look forward to working with you in the future."
I like this. I don't think it is unreasonable at all. If you refund a non-refundable deposit, there really isn't any point to ever telling anyone it is a non-refundable deposit. Because it isn't!
I might do a partial refund because you did spend some time and money on their wedding, but definitely not the entire amount. I would try to keep a future customer if possible.
Find out about the discrepancy using the deposit as leverage like others have stated.
You can give the money back but that won't necessarily assure a future customer. To me that's negating the purpose of even having a contract...which is to protect you and your business. You are out money on tasting cupcakes and your time. What is that worth? Nothing? Because that is what you are left with. Stick to the contract and hopefully they'll understand it's better to go ahead and use you once you get to the bottom of the situation. Don't refund on just the hope that they'll be regular customers and won't bad-mouth you.
A contract is a contract.
You have a contract for a reason. It's there to protect both you and the client. As others have mentioned, I would point out that they would actually lose money by cancelling with you and going with the venue. Let them decide, but stick with your contract. No refund.
Charge for the cupcakes you gave them plus something for your time and refund the rest. Let them know what you're basing it on and that ordinarily you would not refund the deposit but you're making an exeption this time just for them, that you're disappointed because you were really looking forward to being a part of their special day and hope they will consider you next time they want to order. A little apple polishing goes a long way.
I say stick to your contract. You're not being "mean" or unreasonable. You are being true to your word in your contract. Is it your fault that they didn't read the venue contract thoroughly?
I would definitely point out the price discrepancy, though, because once they realize it would be the same price from you, this all may be a moot point.
Maybe this has been said, but would you be returning the deposit if you had turned down another wedding for that date after they booked? They only time I have ever had someone ask for a deposit back was for a cancelled wedding and I did not return the deposit. They had been booked for a year and cancelled just 3 months prior to the wedding and I had already turned down several cakes for that day.
I'm in the you have a contract, don't return the money camp.
First, I would write and say, I would be happy to cancel your order, because I had worked with this venue in the past and never heard about a fee, I contacted them so I would know for future orders. In your case, with my cost of cupcakes to theirs, even with the fee, you would be breaking even.
As per our contract contract, the $100 you placed is non-refundable. Would you like to continue with the cancellation?
Then if they said, yes cancel, then wrap it up! If they try to bicker about the lost money, the ONLY thing I MIGHT do MAYBE is offer them a dozen cupcakes. MAYBE.
The only thing negative they can say is "they stuck to their contract and didn't make an exception for me"
Of course you're assuming that when they tell this story, they will logically state the facts of the situation as opposed to saying they were robbed of $100 for no reason.
Then what is the point of your contract? Anytime a client loses a deposit because of their actions they are always going to blame you instead of themselves. If you are worried about negative word of mouth then don't have punitive conditions in your contract. Because when you invoke them, no one is going to say well it was my fault. Anyone who does is the exception that proves the rule.
And keep in mind you may end up with the kind of word of mouth you do not want either. They will certainly mention how understanding you were and willing to give them a break. This just as easily leads to additional customers who then think they don't have to pay on time, can change their minds and ask for deposits back.
The only thing negative they can say is "they stuck to their contract and didn't make an exception for me"
Of course you're assuming that when they tell this story, they will logically state the facts of the situation as opposed to saying they were robbed of $100 for no reason.
Then what is the point of your contract? Anytime a client loses a deposit because of their actions they are always going to blame you instead of themselves. If you are worried about negative word of mouth then don't have punitive conditions in your contract. Because when you invoke them, no one is going to say well it was my fault. Anyone who does is the exception that proves the rule.
And keep in mind you may end up with the kind of word of mouth you do not want either. They will certainly mention how understanding you were and willing to give them a break. This just as easily leads to additional customers who then think they don't have to pay on time, can change their minds and ask for deposits back.
Completely agree with you, Gatorcake.
I guess what I'm not understanding is, why is there even a question of what to do? There are no mitigating circumstances here. The bride didn't get sick. The groom didn't get into an accident. The bride didn't run away to join the circus a week before the wedding, leaving a brokenhearted groom to pick up the pieces. They just... changed their minds. This is exactly why we have contracts and deposits, so you don't end up wasting time and money for people who changed their minds.
Then what is the point of your contract?
The point of the contract is to give you the option to exercise any relevant clause when it is to your advantage to do so. If you are harmed financially by a cancellation (e.g. if you've already started making the cake or have already turned down business on that date) it is an easy decision to keep the deposit, but in a case like this where most of the deposit is not compensatory (except for the cost of the tasting) it is worth weighing the pros and cons.
This just as easily leads to additional customers who then think they don't have to pay on time, can change their minds and ask for deposits back.
I see this argument brought up quite a bit, and I must say I don't understand it. A customer finding out that a clause was waived for someone else doesn't change anything...they are free to complain that so-and-so got away with such-and-such, but they still have to adhere to the terms of the contract or pay the consequences.
Then what is the point of your contract?
The point of the contract is to give you the option to exercise any relevant clause when it is to your advantage to do so. If you are harmed financially by a cancellation (e.g. if you've already started making the cake or have already turned down business on that date) it is an easy decision to keep the deposit, but in a case like this where most of the deposit is not compensatory (except for the cost of the tasting) it is worth weighing the pros and cons.
Huh? A contract is legally binding for all parties.
This just as easily leads additional customers who then think they don't have to pay on time, can change their minds and ask for deposits back.
I see this argument brought up quite a bit, and I must say I don't understand it. A customer finding out that a clause was waived for someone else doesn't change anything...they are free to complain that so-and-so got away with such-and-such, but they still have to adhere to the terms of the contract or pay the consequences.
Similarly, I don't understand the argument, "I can't enforce my contract or someone might talk smack about my business."
There are no mitigating circumstances here. The bride didn't get sick. The groom didn't get into an accident. The bride didn't run away to join the circus a week before the wedding, leaving a brokenhearted groom to pick up the pieces. They just... changed their minds.
Yes. This, exactly.
Huh? A contract is legally binding for all parties.
You are correct that a contract is legally binding, but all parties to the contract can agree to waive all or part of the contract, even after it has been signed.
Looking at the deposit as an example...if you indicate in your contract that the deposit is nonrefundable, it does not mean that you cannot under any circumstances refund the deposit. Since you are the one harmed by a customer cancelling, it is up to you whether or not to enforce the deposit clause or waive it (or only partially enforce it).
Similarly, I don't understand the argument, "I can't enforce my contract or someone might talk smack about my business."
No one has made that argument...my point was that you should consider how your actions will reflect on your business, and everyone will have a different opinion as to when specific policies should be enforced or not.
Personally I feel that if you go the extra mile for your customers (by definition, doing things you don't have to do) you will gain a devoted following. This is one case where it's easy to go the extra mile: if I had already spent, say, $30 on the tasting and administrative overhead for this customer, I might explain that their $100 deposit is normally nonrefundable, but in this case I will make an exception and return half their deposit. (Of course this would be after resolving the serving fee discrepancy and attempting to salvage the order.)
End result: the customer thinks I did them a favor, and I make $20 for doing nothing. Win-win.
Now if I had to turn away other orders because this customer had already booked the date, things would be different, and I would be more inclined to keep the whole deposit.
OP, you say she only 'hinted' that they'd like their deposit back? I'd say she was just fishing to see if you would bite. Seems to certainly stirred up some interest all right. I'd love to know what you ended up doing.
I would give her a partial refund. Take off the labor and ingredient cost of the dozen cupcakes (and maybe a tiny bit more 
)
You haven't had to turn down that particular date because of their wedding, and it's still a couple months away.
I'm all about contracts and upholding each other's end of the contract, but a little flexibility once in awhile in a situation where it is appropriate goes a long way.
You never know-they may come back to you for something else in the future, or recommend you to others.
Keep your non-refundable deposit. All of it. It's what is in your contract.
We manage a self storage facility. At least once, every few months, we have someone rent a unit and want to cancel the next day, because they found a cheaper one near their work, decided to sell the items, found somewhere free to store it - whatever. They are more than welcome to cancel their contract, but they aren't getting a refund for the remaning 30 days. Our contract is a term of 1 month. While they're disappointed, they usually say they figured that would be the case and understand. And we haven't been bashed online for enforcing our contract.
Sometimes people ask for something they know they won't get, just in case they may get it. Just like all the smart shopping articles suggest asking for a discount - it doesn't hurt to ask and you may be surprised with a discount.
Whew, so many strong opinions! My questions here are: Why would the venue charge a serving fee for cupcakes? I deal with venues that do charge a "serving fee" for outside cake vendors, but it has not applied to cupcake trees, as they are self-service food. My other question would the amount of time between the contract and the cancellation. If we're talking about a few days then I would offer them a partial refund. If it were weeks or months I would not offer them a refund.
I have worked hard on my contract and I believe everyone should have/sign them. I also believe that sometimes you do something just because it's the right thing to do. Karma goes a long way, and I don't need the $100 that bad.
To the self-storage owner, I completely see why you do what you do and I stand behind you actions. You don't even need me to do that; it's your business, literally and figuratively. There are lots of wedding review sites (The Knot, Wedding Wire, etc) but I don't know of any self storage review sites. Although I haven't reached the end of the Internet yet! 
Just saying its easier for a cake vendor to get a bashing on the Internet, whether it's deserved or not.
There are lots of wedding review sites (The Knot, Wedding Wire, etc) but I don't know of any self storage review sites. Although I haven't reached the end of the Internet yet!
Just saying its easier for a cake vendor to get a bashing on the Internet, whether it's deserved or not.
Funny you mention that...I was looking for a self-storage facility a few months ago, and there are several in our area reviewed on Yelp.com. I went with the facility that had the most positive reviews, and one of the common threads in the reviews was the owner's willingness to be flexible with their contract terms.
LOL! That's awesome Jason! See, I told you I had not reached the end of the Internet yet! I haven't used Yelp yet; I need to look into it.
There are lots of wedding review sites (The Knot, Wedding Wire, etc) but I don't know of any self storage review sites. Although I haven't reached the end of the Internet yet!
Just saying its easier for a cake vendor to get a bashing on the Internet, whether it's deserved or not.Funny you mention that...I was looking for a self-storage facility a few months ago, and there are several in our area reviewed on Yelp.com. I went with the facility that had the most positive reviews, and one of the common threads in the reviews was the owner's willingness to be flexible with their contract terms.
Gee, go figure 
Anyway, yes, there are plenty of places for reviews. While our term is min. one month and we don't give refunds for cancellations during the first month - we also don't charge security deposits, admin fees, make them buy a lock, etc. Other places that charge all of the extra fees have a way to recoup their lost time and even possibly enough to cover the cost of the rental they're now missing out on.
Kind of like how some bakers charge for the tasting and othes don't. If you charged for the tasting, your time and expenses are already covered and it would make much more sense to give the deposit back with it so close to their signed date.
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