cancelation fees?

Discussion in 'Business Operations' started by bobbygedd, Oct 24, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    does anyone charge a fee for clients who cancel, or , clients who you cancel? what if a client requested a service, anything, and you wrote it up, signed it, and took a deposit. a few days later, client calls, and simply changed thier mind, and wants a refund. is there a fee for this? afterall, you went and gave the quote (that's a free estimate), when you came to an agreement, you wrote it up, both parties signed, and you got a check for deposit. you fill out deposit slip, and deposit check into bank. now, client changes his mind. there should definitely be a fee, does anyone charge a fee for this? i'm thinking of starting a fee for this next year, perhaps a flat rate of $20 on any job.
     
  2. westwind

    westwind LawnSite Senior Member
    Posts: 444

    I can only speak for our matinence customers, but if they sign a contract and want out early we charge them one month of service. This is stated in the contract. I believe that landscaping is the cost of any materials purchased, as well as 5% of total.
     
  3. Ric

    Ric LawnSite Fanatic
    Posts: 11,957

    BooBy

    When you guys in NJ final get with 21th century business practices and sell season long contract. The cancellation fee will be built right into the contract. BTW season long contract also would have saved your Butt this last year during the drought you all had.
     
  4. Precision

    Precision LawnSite Silver Member
    Posts: 2,995

    if 30 days notice are given, then no fee.

    If significantly less than 30, then the balance on the month of pre-pay is kept and service discontinued.

    On one time stuff. Deposit is returned less materials costs expended / or time expended on project.
     
  5. NickN

    NickN LawnSite Bronze Member
    from Alabama
    Posts: 1,010

    Deposits are non-refundable.If they were certain enough to pay a deposit,but cancel later,too bad.I've used that deposit to purchase materials for their job,plus the time to round up the materials,gas,etc.,,That's what deposits are for(In case they back out later it won't cost me anything).That's also why you go straight to the bank and deposit their check as soon as you leave,if possible.
    If they don't back out,then the full amount is due upon completion or if it's a large job,half paid after reaching half way mark,and then the full amount due upon completion.I break it into thirds.
    Never had anyone cancel after getting a deposit as of yet.Most people are sure they want the job done when they write that first check.
     

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