It does warrant at least a partial refund though. I can't tell you specifically what you should refund, but 15% to 25% I would say. That's a big oversight.
Honestly, I'd refund it in full because that's the cost of making a mistake like that in business. Sure, they probably ate the cake, but that's a big mistake.
I have to agree with costumeczar. That's a huge mistake. I had a surprise 30th bday party for hubby many years ago. My best friends brother made the cake and he spelled his name wrong. I never complained and we kinda laughed it off but, to this day, when I see photos of that cake, it irks me. I just kinda felt like he didn't care enough to even double check the spelling of his name.
If it were me, I'd offer a huge apology and a refund. It's not the end of the world, but it is a bummer for the recipient.
Hope it works out for you.
I did this recently spelling Jenelle, Janelle. The father came to pick up the cake, I showed it to him, but he didn't say anything. The mother told me later about my mistake and admitted her husband didn't notice. She didn't seem disturbed by it because some quick thinking genius just flipped the a upside down! It is a big mistake, but I guess it depends on the client and how disturbed by it they were by it.
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