They cancelled!- Deposit

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Originally Posted by apples and bananas

That's a tough one. Unfortunatly in our business word spreads. In my area I get referalls all the time because I'm fair. Although my policy is the same, if they gave me this much notice I may be inclined to refund it. I know it goes against my policy and we wonder why we have these policies if we don't stick to them, but, some of it is customer service too. I think this is a reasonable amount of time, I would love for that client to refer someone else to me, I wouldn't want to burn a bridge. September is easy to fill in my area so I wouldn't be out money... but your area might be different.

Think of it from both sides and how the "bad press" might affect you in the long run. Only you know if you can afford to give it back and if it would affect your name in your area if you choose not to.

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I would have to agree:)

Trust me when I say I am not one to bend on policies eithier, but I am sure you've read my posts about the wako's I've dealt with, they have given you notice return it in good faith that Karma will return rthe favor, just my two cents

I would base it sort of on how long you have had the deposit as in how long have you not been interviewing because that will effect how long it takes to fill the space. If she can find someone to start before Sept then she will get her money back and if not then well that is the point of the deposit.

You could agree to advertise and interview and only if you find a replacement the refund will be returned as in the deposit placed by the new family becomes their's.

I changed my deposit to apply to the last two weeks of care. IF the parent starts care in sept then she pays accordingly and then is allowed to give notice. Until care actually starts the contract doesn't go into effect. Meaning she can start in Sept and pay for her first week of care and on the same day give notice to terminate and pay anything beyond the two weeks of care. The fact she told you early is a bonus and effects nothing. The money is yours if she doesn't start care in Sept. If she starts care in Sept then the rules of the contract start too - ie length of notice.

Oh yes, playfelt I never thought of that, sounds like a good idea to me.

Is it worded in your contract?
I totally understand where everyone is coming from, it's a tough call. Think of it this way ~ if you were putting a deposit down on something to buy like a sofa and then change your mind because you lost your job, that store won't be giving back that deposit once you sign on the dotted line. Yes, we are not selling sofas and our business is families but we are doing just that, running a business. You could come up with a compromise and give 50% back and explain that you understand and respect her choice to have her Mom watch her kids- the other portion that you have written in your contract is non refundable is being used to adertise for the spots that you possibly missed filling with potiental clients while she held the spots.
Word of mouth travels fast in any business and in a small community even more so but, having said that, do you want someone who is going to take the negative without understanding both sides. I think that might be a happy medium? And do you have the deposit sitting in an account and or folder for their first or last week of care, if your like me, it's been spent

Good luck ~ hard one. Let us know how it works out for you.

I would tell her that you stopped interviewing for families because she made a verbal promise and a written legal promise to take the space and that is costing you time by having to start the interview process again which has been delayed. It's her fault, not yours. You did everything in good faith. Stand strong.

I would not refund the deposit. You get a deposit to protect yourself from this type of situation.

@ Playfelt - I like your wording regarding the deposit - I think I may incorporate that phrasing into my own contract - try and avoid these fools who sign up four months in advance and then cancel 2 weeks before they start up.