I have my own business, services were paid in advance, but...?

Question

when services were ready to be done, found out that the client was dishonest about everything, but, expected services to be rendered, without having to pay additional money, so, we left the job. Do, I need to refund her money? There was nothing in writing, it was set-up by phone...this has never happened to me before, I am highly referred by all of my past clients....and have a great reputation in our city...please any advice would be great.....please help...especially what legally can be done to me and my business....thanks

Answer 1

What can happen to your business is that you can get sued. Depending on the type of business, maybe more can happen.

What you have is a business disagreement. It is a challenge. It gives you an opportunity to build on your excellent reputation, grow your business, and turn the situation into another satisfied customer.

Sometimes, no matter how much you charge, some customers are going to think you are charging too much, and want the job done for less. Their object is to have the work completed for as little as possible. Free would be a great deal in their mind. To you, this might seem dishonest. In the business world, it happens all the time.

Your customer either still wants the work done, or they want their money back. If it costs you something to get ready for a job: planning, scheduling, buying materials that can't be returned to the store, things like that, then the customer must understand that their deposit is already spent. There is nothing to refund.

On the other hand, if you took their deposit, but walked off the job, then you have a different problem. You have responsibilities that you should meet. The customer was depending on you, now the job is not done. This might be costing them more money, and they might have further damages because the job was not completed on schedule.

It would be a good idea to sit down with an attorney and go over your options. You don't have a written contract. Much of the agreement you made with the customer is unknown. The customer thinks one thing, you think something else.

A second idea is to call the customer and try to work things out. You already have some of their money...you just need the rest of it. Is there any flexibility to adjust the price? Maybe you can change the job, and do less, for the money you already have, then finish the job when the customer pays you more. Look to see if there is a way to break the job up into smaller parts.

Perhaps, there is something the customer can do for you besides pay in cash. Look to see if there is any way to accept another form of payment or trade. Does the customer have a business? Can they do some work, or provide some service in exchange for payment?

Without knowing your business, it's hard to make more suggestions. You are in the middle of a headache, but being sued is another headache that takes time, effort, money, and aggravation. It also will lead to bad feelings between you, the customer, and everyone the customer tells about their bad experience.

Always look at what is best for your business, and what will help your business to grow. You have an excellent reputation. Sometimes, it's better to save the aggravation, and compromise. Then move on to the next job.

Next time, consider using a written contract or work order so you don't have this problem again. Put things in writing, so that everyone knows the terms beforehand. It is not going to prevent all business disagreements, but at least if you get sued, you can show the judge a signed contract in your defense.

Good Luck.