I own a kid's party entertainment agency. The parent calls on the phone & we take a credit card deposit to hold their slot. Now, what is happening is that flakes are canceling at the last minute & when I say the deposit is nonrefundable (as we cleary state on our website and during the booking) they claim "you can't do that - I never signed anything" & threaten to dispute it with their credit cards. The typical advice I get is to deal with this is: "make them sign the contract" but they book at the last minute so there is no time for them to mail it & they say they dont know how to email it (or they forget). Making them drive in Houston to drop it off is not feasible (and I aint doing it either). Hounding them is going to drive them to my competition (some of whom dont require contracts). I have more good deals than bad, we're #1 in our market, so I wonder if I just have to accept the good with the bad? PS: Should I return the deposit or take my chances with the credit card companies?
2007-11-27 16:43:47 · 3 answers · asked by Esmeralda 4 in Business & Finance ➔ Small Business
PS: The clients also state they dont have a fax machine. So "have them fax the contract" does'nt work either.
2007-11-27 16:44:58 · update #1
Option 1. only book people in advance. mail them the form, they sign it and return it or no deal.
Option 2. Put a clear message on your web site that a non-refundable deposit is required. Charge the charge as soon as they sign up. And fight the credit card companies if they try to take it back. You may not win all the battles, but you will win some.
You can't afford to let people take away your main resource...your time.
2007-11-27 16:51:50 · answer #1 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
Put in a policy. The deposit is non refundable if the booking is cancelled some X hours before the party. Do not take a booking without contracts. In any case, they are not going to go to your competition, as they never intended to use your service anyway and used you as a backup
I really suggest you can take your chance with credit card Co.. Get a good lawyer to work out a foolproof solution and runt it past a credit card co as well.
2007-11-28 00:53:25 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No Don't take the chance. you will lose your face and credibility towards the people you are dealing with.
As you know, bad news go fast. Once some of your clients will discover the situation, will spread the word to min. 10 people and each of the 10 to another 10 and so on...
Imagine what would you feel if you face such a situation and what would be the subsequents?
At your position, people expect you to be trust worthy.
You said you have more good than bad, so keep it this way and do not take the chance.
Mike(PhD.)
2007-11-28 15:08:51 · answer #3 · answered by profissor Bogy B 2 · 0⤊ 0⤋