Wedding cancelled...do I return the deposit?

<p>My husband and I have a small photography business on the side. He works full time somewhere else and we do this in our free time so that I am able to stay home with the kids. Anyway...we had 7 weddings in contract for this summer season.<br>

Today, I got a call from our August 1 wedding that they broke up and there was no longer going to be a wedding. In our contract, it states that we require a $200 non-refundable deposit to secure their wedding date. The balance is to be paid no later than 1 week prior to the date. We make the deposit small because we don't want to make people pay too much that far in advance, just in case. However, we need something to secure the date, otherwise, we are losing when we have to turn other people away. For July/August, we were already running a 10% discount if people booked with us. Our package is $1000 usually, but for this date, it was $900. We are in a small area so this is reasonable in our area. Actually we are one of the cheapest around but because we do this on the side and not as our main job, we are able to keep costs low.<br>

She contacted us the beginning of December 2008 and we sent her the contract then. She sent back the contract with the deposit at the end of February 2009. Then she called and said to not cash the check because of something with the bank. Well, we had already deposited it so I called the bank to make sure we hadn't gotten a returned check fee. We hadn't and she called later in the day to say she cleared it all up. Her family owns a local business that we do a lot of business with also; that is how she knew of us.<br>

My question is do we refund the money? It is non-refundable and she didn't ask for it back. But, I feel badly that her relationship ended and now there won't be a wedding. However, we do a lot of business with them (which doesn't really make a difference I guess) and we depend on that money. If we have to turn down a job because we are already booked for a date, it's a big deal for us.<br>

This has never happened before and I don't know where to go with this. Do I refund it, keep it as stated in the contract, or refund half of it?<br>

Thanks for any help in advance!</p>

<p>Laura,<br>

My policy has always been NOT to refund, rather to give your client FULL dollar credit toward a future wedding at the prices you are charging at the time the new wedding takes place. In other words, she has a $200 credit. I have found that most people don't want to have anything to do with plans from a broken engagement, so they go elsewhere the next time. If you give them back the money, you've lost this wedding, the $200 AND the next wedding. If the $200 is that important to them, they'll probably rehire you down the road.<br>

On the other hand, if you're that uncomfortable, explain to them that you've turned away work for that date (if you have) and you'll be happy to refund all of part of it if you should rebook the date....-Aimee</p>

<p>I have never re-funded a retainer / deposit and we've experienced 3 cancellations. Is she asking for the deposit back? We tell the client that if they need our services sometime within 2 years, we would hold their current deposit/retainer in place IF we have the new date open. You never know, they could get back togeather or they could meet someone new within a 2 year period. $200 isn't a whole lot and i couldn't imagine someone getting too upset knowing that you have lost a day of service due to something that is out of your control.</p>

<p>I always return the deposit.</p>

<p>I tell them that when they book.</p>

<p>My policy, works for me, maybe or maybe not for you.</p>

<p>She signed the contract and gave you a non-refundable deposit. She's a business person also, which likely explains why she didn't ask for it back. I think if you offer to refund it, it only serves to lessen your professionalism in her eyes. If she's honoring the contract, leave it at that!<br>

I personally would not refund it, even if they asked for it, but remind them why it's non-refundable (to reserve the date while you turn down other jobs for the same date). An option would be to tell them, "If I do end up booking another wedding on that date, then I will refund your deposit." I also really like the idea of offering them a credit for the amount IF they re-book with you in the future. I'll have to revise my contract to include that option!</p>

<p>Don't give it back - it's part of your business policy and you should stick to it. The only way I would give back a retainer/deposit is if I was able to book another wedding for the same date that was canceled.</p>

<p>I'm not a wedding photographer. But, I can see where, from a straight business standpoint, you should stick to the terms of the contract.</p>

<p>Having said that, it sounds like you're in a small town where "everybody knows everybody else", or close to it. That means you have some good will at stake, as well as business interests. Which is worth more to you in the long run? It seems to me that loss of good will might result in loss of future business, which could end up costing you more than the amount of the deposit. I'd say, return the deposit, along with some commiseration for the breakup.</p>

<p>Alternatively, if you do decide to keep the deposit, why not tell your client that, if the wedding is ever back on again, the deposit will still be good?</p>

<p>Thank you everyone for your advice. I really like the idea of refunding it if we book another wedding or giving them the credit. And Daryl, I never thought about lessening the professionalism in her eyes...thanks for that. She isn't asking for it back; at least not yet. She just called this morning. I feel as if we went through some worry with the check/deposit previously and even though it is a few months away, every time we book a wedding, we plan way in advance and gather new/improved equipment all the time. We just traded and upgraded one of our cameras due to having 7 weddings booked this year. So, more debt. I feel we have "worked" for her wedding already, in a way. I have done research on the net about her church and hall and planned where to shoot some pics, etc.</p>

<p>I guess I just feel bad because we aren't "full time" photographers and therefore we don't have the "business is business" mentality. Even though, we need to get it. We are running a business, that we depend on, and they signed the contract knowing the terms, and that's that. I appreciated everyone's input and for now, will probably leave it as is unless she asks for it back. If we rebook, maybe I'll surprise her with a refund. :) We'll see in the future. it's only 4 1/2 months away so I don't know if we will at this point. I'm guessing we'll start to book for 2010 already soon.</p>

<p>I have a sample contract in which the first payment is identified as a retainer which will not be refunded if the customer cancels.<br>

In your case the situation is compounded by the fact that you do other business with these people, so maybe you should just refund it, or at least half of it.</p>

<p>I have a sample contract in which the first payment is identified as a retainer which will not be refunded if the customer cancels.<br>

In your case the situation is compounded by the fact that you do other business with these people, so maybe you should just refund it, or at least half of it.</p>

<p>Let's see:<br>

Her family business does a lot of business with you and your husband, you are in a small community, and you have 4-5 months advance notice of the cancellation. In this specific set of circumstances what do you think the smart thing to do is?</p>

<p>Okay...ummm, I don't really understand the sarcasm of the situation. It was a real question. I have to add that we are not heartless people and if it was some, God forbid, horrible situation on their end, of course we'd refund. But, unfortunately the relationship just ended, which I feel terrible about, but it was not our fault and out of our hands. That's the reason for the question. Honestly, I don't feel that we should have to refund because then we might as well take that clause out of our contract for everyone. We can't pick and choose who we refund for and who we don't, just because we feel bad. But, the fact remains that we are a small business and I do feel very bad about the situation and taking her money when there isn't going to be a wedding. But, that is a chance they take by signing the contract.</p>

<p>I really do like the other posters' suggestions about a credit or refunding if we do book another gig. :)</p>

<p>I don't think you should feel bad about not returning the deposit/retainer, but if you are concerned about creating ill will or damaging an existing business relationship, could you offer to put the money toward another service you offer? Maybe offer a portrait session with no sitting fee (scheduled at your convenience)- that way you still keep the money you are depending on, and can feel like you are still providing them with a service, and keep a business relationship that matters to you on good footing.</p>

<p>Well then Laura, if you're not heartless, why not give them a refund?</p>

<p>I worked for Target during the early days (started at T-2), when we had to scrape and claw our way to sales, why do you think they became so successful? Wasn't it certain policies that helped the team to succeed? Some may have forgotten their roots but I haven't, that is why I have the policy I do. It's my philosophy. I would hate to take money from a potential client w/o an appropriate service rendered.</p>

<p>Your choice.</p>

<p>Just my way of doing business. And I'm pretty dog gone busy.</p>

<p>Best to Yours and Everyones Heres Success.</p>

<p>Laura -</p>

<p>You have a unique situation on your hands here... You're not in a major city where you can swing a phone book and hit fifteen wedding photographers. You're in a small town, where everyone knows everyone and everyone knows everyone's business.</p>

<p>I grew up there. (Figurtively - I grew up in a rural setting - nearest "town" had a population of 1,200. 2nd nearest town - 5,000...</p>

<p>Be proactive with her - call her and say - "I know the contract says the Retainer is non-refundable or non-transferable - But here's what we'll do - If you'd like - you can leave it with us for future use (don't ask her to make a decision "NOW") or if you prefer - we'll refund it - providing that we do manage to find another wedding or other shoot for that day. "</p>

<p>She won't think any less of you as a professional - I don't know where that remark came from or why. If anything, she'll see you as far more professional.</p>

<p>My opinion is that we put that "non-refundable " clause in the contract for 1 reason - to prevent a bride / groom from booking more than 1 photographer for the day then calling at the least instant to cancel all but the one they "really" want.</p>

<p>Dave</p>

 

<p>I've never refunded a deposit. But, you're in a unique situation. You already have time involved with meeting with these people, going through your portfolio and planning. Being that you do business with this person, It might be in your best interests to offer other services and give them credit for their deposit. That may be the best approach to keeping the friendship alive and keeping future business options open. It couldn't hurt to make the offer. A portrait sitting might be the best approach.</p>

<p>Laura, I imagine Ellis is going where I would go: you're in a tight community with good relationships. Consider that if you mention the contract indicates the deposit is non refundable, but that you are so sorry their relationship did not work out, that "I would like to give you your money back. I know that when the time is right, you will come back to me again for your special day, and perhaps even send some of your friends my way when their time comes."</p>

<p>I don't do weddings, but on other commercial work, I require a deposit. I have always found that generosity on my part always pays off many times over later on.</p>

<p>Because of the circumstances (smaller town, fellow business people, friends, etc.,) remind them of your policy, split the difference with them ($100 for you and $100 for them) and tell them they have a $100 dollar credit good for two years. They'll probably think your being very fair. Win/Win !</p>

<p>Why ask for a deposit if you're going to refund it? It serves no purpose then. Why bother? If you do it for one, then you have to do it for the rest in general.</p>

<p>Giving a credit for a year or two is fine, maintains a relationship, and provides some value for the 'depositor'. It can get a little 'interesting' if two parties contributed toward the deposit! Best wishes.</p>

 

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<p>Honestly, I don't feel that we should have to refund because then we might as well take that clause out of our contract for everyone. We can't pick and choose who we refund for and who we don't, just because we feel bad.</p>

 

</blockquote>

<p>My reasoning abut this matter in this specifc case given all ofthe facts you laid out ... small town... you do a lot of work for her families business... has nothing to do with feeling or heartlessness or sentimientality and everything with cold business sense.</p>

<p>How much is that $200 worth to you? What is your estimation of what the long term costs of not taking care of an existing client (this is a service business after all) by not refunding the $200.00 will be?</p>

<p>I think your policy in general makes great business sense and I applaud you for your smarts in having such a policy. But there are cases that don't conform to general rules. Think strategically.</p>

<p>You can keep the deposit as it's stated it's non-refundable. The remainder is their money. You'll be charging for services not performed. If you feel the $200 is too small an amount, then raise it. Some go as high as 50% deposit</p>

<p>I agree w/Ellis 100%. As a general rule, a non-refundable deposit makes perfect sense. However it also makes sense to be flexible, since in certain instances it may make more business sense to refund. I agree it's got nothing to do with hearlessness, or feelings, etc. It's all about what's best for your business. If by refunding in this case, you feel you may buy yourself goodwill (and hence referrals, more business, etc.) then consider the refund.</p>

<p>As others have said, good will might be worth more than $200 in your situation.</p>

<p>I use computer generated contacts. When I enter a package, the first line item is 1 Consulting/Planning Session, followed by the other line items (length of coverage, album type, etc.) and then one total price. It also states that the "RETAINER" in non-refundable. This way, everyone understands that the initial 1 or 2 meetings and possibly numerous phone calls have a value and I'm charging for them.<br>

Also, my attorney advised me that a deposit is refundable, but NOT a retainer...-Aimee</p>

<p>Couldn't the small town setting work against her by refunding the money? I would think if she offers the former bride-to-be the refund, then the former bride could tell several folks in town about the nice thing she did, and word gets around a small town pretty fast. Suddenly her deposit clause is useless, as everyone who has heard the story of the refund who wants to break their contract for whatever reason will expect a refund as well.</p>

<p>If you do a lot of business with the family, I think they would understand. After all, if you are doing business, they are business people too. </p>

<p>As she has not asked for the refund, I would not offer it. If she does ask, then I would agree with one of the alternative offers suggested above. I think pro-actively offering the refund or giving the money back with no strings could cause you more headaches down the road.</p>