Hello all!
I take a 50% deposit on orders over $25. I just had someone cancel their order. How much do you guys keep if an order cancels? It was cancelled a week out so I had not made it yet. I was thinking that they would get 30% back but I kept 20%? Thoughts?
I think you should probably refund it all since you didn't have an advertised policy in place and because you didn't start the cake yet --
then as you give them back this deposit advise them of the new policy should this happen again and you'll have it in place for any other client going forward --
unless there's something I don't know like you turned away a couple $2k cakes in the meantime or something --
best to you
well i am retired now -- but i kept all payments, refunded nothing because i explained to my peeps what happened to each of the three payments they could make --
the first holds the date where i plan my life around their cake --
the second is when i purchase everything and because i'm a small home baker no i have no where else to funnel those purchases if they cancel so i keep that payment --
then the last payment means they just bought a cake that will be delivered as scheduled -- their event taking place -- nine times out of ten it was a wedding -- but their event occurring was not contingent on me doing their cake -- if the wedding date changed or anything they had to store the cake -- blabla -- i said more but you get the gist --
so at this point i would have a softer policy -- i would tend to refund --
and in those days peeps wrote checks -- that i held for a week before depositing -- i would have torn it up if they had to cancel within that week --
one time the bride cancelled and i did keep two of the three payments that she made and i slightly hate myself for that now so --- whatever -- then she booked with me for her real wedding and i just charged her the same and it all went well --
but being nice feels better and i'm into me and you and all of us feeling better/good/nice
so whatever that mouthful is worth -- voila
you should charge what your inconvenience is worth
wait -- the time i kept two payments was when she made two payments (out of the possible three)
I keep the full deposit; but that is stated on my invoice when it goes out. If they book that spot then if they cancel its hard to fill that spot last minute. I mean it depends on if you have discussed this with your client to begin with.
Hi all,
I am new to starting my own business, and was wondering if you always have customers put down a deposit. Is the deposit the same amount for all inquires? I am still trying to put all the pieces together and gather as much information as I can to get myself going.
Thanks for any advice you have!
Yes, always a deposit. From the minute you start talking to a client you are investing TIME which is worth MONEY.
Like K8 said above. 1. Hold date, 2. buy supplies, 3. bake.
You make a commitment to the client to make a cake, they commit $$$ to you. Tons of horror stories on here how bakers got burned. Don't be one! What will you do with a cake that is NOT picked up and paid for? It's not like the majority here have a display case and can "put it back on the shelf" and sell to to someone...ya know?
Desposit buys my time and ingredients. Final payment (preferably 2 weeks before event turns on my oven
For weddings there was ALWAYS a contract, clearly outlining what the deposit was and that it was nonrefundable for any reason. And yes, I kept the deposits.
For other cakes, I would do an invoice with a deposit billing, a statement of when the final payment was due (3 weeks prior, because that's how long it takes a check to clear) and the refund policy, which was basically no refund, for any reason.
As long as you clearly communicate with your customer there should not be any decision making down the road. Everything is spelled out clearly in the beginning.
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