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View Full Version : Customer wants to cancel contract


TexasFire221
12-02-2009, 08:14 PM
What would you do? I have her for instal date today. I call her and tell her we will be getting her stuff up today and she can expect to see us in a couple hours. She tells me she has changed her mind and doesnt want us to install anything. What now? She has paid 50% down.

fl-landscapes
12-02-2009, 08:40 PM
These are things that should be in your contract.......100% refund of deposit if cancelled x amount of days down to zero refund if cancelled x amount of days prior to install. Thats what a deposit is for.

David Gretzmier
12-02-2009, 10:12 PM
I have handled this differently in different situations. from 2004-2006 I turned away work every year once we got booked up to the 8th of December or so.

If I had a customer cancel me in those years, and I had already ordered and paid for their product, I had taken 50% down and I basically got hurt financially by thier backing out, I tended to lay the situation out for them and pretty much expected them to compensate me for my loss of sales and especially for the the money out of my pocket for inventory that I now have to try to sell to someone else.

after I jumped to 3 crews, I really did not turn away too much work after the 2007 season. I rarely lose a job because I cannot get it up by a certain date. I also started ending up with more and more inventory every year just to be ready for the endgame rush where you close a job and hang it the next day or following. So it does not really hurt me financially to have a customer back out. so now a days I tend to give back the deposit unless they had me order something specialized that I cannot sell to another customer. I can always sell wreaths, garland, links, c-9's, etc. but a snowman or nativity luminaries just don't fly out the door.

hotrod1965
12-03-2009, 09:16 AM
If it's not in your contract.... you are stuck.

We have something like..."anything custom they pay for....$100/hr for time spent....."

wurkn with amish
12-03-2009, 05:59 PM
In my contract it states 1/3 down non-refundable....

turf hokie
12-03-2009, 06:55 PM
Ours says the customer has the right to cancel within 3 days of signing the contract. And that the date of services is at our discretion and no breach of contract shall occur based on timing of services.


Amongst other legaleeze


NICE

TexasFire221
12-03-2009, 08:37 PM
If it's not in your contract.... you are stuck.

We have something like..."anything custom they pay for....$100/hr for time spent....."

How am I stuck? She is the one cancelling. Obviously I need to update some paper work with a cancel clause. Basically she told me to keep the deposit and she will call me next year. She signed the contract about 14 days ago and wanted to cancel due to needing the money for Christmas for her kids.

hotrod1965
12-03-2009, 09:13 PM
You didn't say you got to keep the deposit... I can't read your thoughts....

In that case, you got paid, so what's the problem?


How am I stuck? She is the one cancelling. Obviously I need to update some paper work with a cancel clause. Basically she told me to keep the deposit and she will call me next year. She signed the contract about 14 days ago and wanted to cancel due to needing the money for Christmas for her kids.

TexasFire221
12-03-2009, 09:18 PM
You didn't say you got to keep the deposit... I can't read your thoughts....

In that case, you got paid, so what's the problem?

Yes I understand you can't read my thoughts. I just wanted to know what everyone else has done in a situation like this. I do need to get some some stuff in my contract to cover myself next season if this were to happen again. Like Dave said, if were just wreaths or Icicle Light Links it would be no problem. But she had ordered stuff like Victorian Horse and Sleigh, stuff I might not sell again for 4 or 5 seasons. Was just wanting to hear someone elses comments on this and I do appreciate it.

addictedtolandscaping
12-04-2009, 06:19 AM
I agree with David, I saw a little backlog this wek with a large project that I had figured 2-3 guys on and I was the only one who showed up. I will be back on schedule Monday, and all set. I would also have her pay for specialties etc. But if you are keeping the deposit, sounds lik a customer worht holding onto and smeone who understands you laid out money. I did one last night that was going tobe much larger but the husband totalled his car in the am. Much smaller, but still got the contract.

grass_cuttin_fool
12-04-2009, 06:31 AM
Yes I understand you can't read my thoughts. I just wanted to know what everyone else has done in a situation like this. I do need to get some some stuff in my contract to cover myself next season if this were to happen again. Like Dave said, if were just wreaths or Icicle Light Links it would be no problem. But she had ordered stuff like Victorian Horse and Sleigh, stuff I might not sell again for 4 or 5 seasons. Was just wanting to hear someone elses comments on this and I do appreciate it.

I agree and you need something added to the contract about cancellation....this customer was very understanding it seems.... long as the 50% covered the cost of the horse and sleigh then you are ok....if you can sell it at a discount then that is profit....cut the price and try to move it and not have it in inventory

TexasFire221
12-04-2009, 06:50 AM
I agree. Thanks guys!