Vote: Should I return the deposit?

Question

I have a entertainment booking business. I have recently began requiring that customers pay a deposit because business is really growing and we are losing too much money
on clients who cancel at the last minute keeping us from scheduling someone else. The other issue is that the entertainer gets over to the neighborhood and then gets lost and when he/she tries to call the host/hostess they don't answer the phone to give directions and thus the entertainer gives up...

Just as a "survey"...

How many of you think its justified to require a deposit and for me to KEEP the deposit if the client backs out at the last minute? (keeping in mind if its a legitimate emergency I can credit the deposit for a future re-scheduled party).

This one is the tricky one: What about if we should keep the deposit if we drive all the way to the clients area, get lost, and the host/hostess won't answer the telephone to help us find the place and we lose the booking?

Your opinion please! Thanks!

Answer 1

If the client cancels at the last minute, you may and should keep the deposit, since it prevented you from booking other work in the interim.

However, the responsibility to find the client's premises falls upon your business. It's not the client's fault that you can't find them. And they're not responsible to answer the phone to give you directions either. You and your workers need to develop a system with maps so that you know where you're going and so that you show up ON TIME.

Answer 2

Many businesses have a deposit system and for good reason. Think of any large hotel chain, if you reserve a room and do not show, they can charge you for that room or some sort of fee to offset the loss they have for not being able to book that room. As for your entertainer getting lost, that is your responsibility to have the services provided where they need to be, when they need to be there. Picture the wedding party who is waiting there for the caterer who got lost. I would think that the cost would be higher, and that through contract there might be legal remedies (lawsuit for lack of performance of services contracted). On another note, if the entertainer is late; better to show up late than not at all.

Answer 3

I believe if people back out at the last minute then there is no reason why you shouldn't keep the deposit. As far as you getting lost then they should get there money back. In this day in age with all the technology you have available to get directions to anywhere your clients shouldn't be held responsible.

Answer 4

My opinion

first question: yes I think it's fine to keep the deposit if the client cancels within a certain time frame

second question:if your entertainer gets lost, that's not the fault of the client even if you and/or the entertainer cannot make contact with them.

Answer 5

You have the right to do whatever you want and I can understand your frustration.

However, to maintain your reputation and increase business you need to draw up a contract with your requirements and the time required to give notice to still receive a refund. Have every client read and sign the document first.

If the client is in your office or is good with e-mail you could try printing out a map from google maps right in front of them and making sure they verify the location.

But I believe you are responsible for being at a specified address at a specified time. I would not rely on my staff trying to find the place on their own, that should be your job to prepare them for every event.

Answer 6

Yes, Just let the customers know up front that the deposit will not be refunded if any such things arise. Also keep the deposits in a separate account or on a prepaid credit card that way you can keep track of them.

Answer 7

You are entitled to keep the deposit because no matter what the issue is with the client, that spot could of went to someone else that would of paid for the spot. The client pays for the spot, if they tie it up and then ditch, the still had the spot whether they make it or not.

Answer 8

u should keep the deposit,if its the client that is backing out at the last minute.as long as its not ur fault or ur companys fault.

Answer 9

first instance - yes
second - No....you need to be professional enough to be able to find an address. There are just too many resources out there not to. Getting better directions in the first place would also help.