Do You Charge Clients For Cancellations?

Dave Blackhurst · July 10th, 2017, 02:53 PM

You can't "charge" if you didn't have a properly worded contract, and "retainer" or "reservation" fee (words are CRITICAL, if it goes to a court).

You certainly won't get very far trying to "charge" something you haven't already taken for your time/trouble.

IF you have your contract carefully worded, and you've already taken a fee that sets aside a specific date and time (that you may or may not be able to "re-book"), it's likely you could keep an amount you've already been paid as a "cancellation" fee (think cable or cell phone... although they don't take it up front, they certainly expect it if you bail).

Of course you can choose to refund (or allow a reschedule) or not on a case by case discretionary basis.

As a "service provider" you are "selling" a block of TIME required to create the deliverable, as well as the final delivered product. It's not always easy to differentiate between the PRODUCT the client receives and the time where the CONTENT is captured, processed, etc., but there are costs and expenses at each stage (including investment in equipment, travel, etc.), so you in theory can reasonably claim a non-refundable portion of the total "price" (for "lost" time and opportunity), and likely defend it if there's a "breech" on the client's side.

Reasonable of course is a matter of opinion, and opinions can get expensive, so a properly worded contract is a must before you even try to defend your "opinion", should things get confusing!

Hopefully this will be helpful (and read that linked article!) in your contract revisions....

Noa Put · July 10th, 2017, 03:28 PM

Recently there was a videographer who got sued by his client because she canceled his services and she wanted the retainer back but the videographer refused.

The judge had a hard time understanding why the videographer wanted to keep the retainer because there where no services performed but the judge did rule in favor of the videograher as he found that the clients explanation why she cancelled the videographers services was not a valid reason to cancel.

I think much depends on the judge and the reason why the services where cancelled.

Cary Knoop · July 10th, 2017, 03:48 PM

By the way be careful that you may get what you ask for when you take a retainer!

If you are the one who got payed a retainer to perform a service at a wedding and you cancel you could be liable for damages as well.

These things work two ways!

David Barnett · July 10th, 2017, 04:47 PM

I find it odd a judge wouldn't be able to grasp the concept of 'booking' a date, and the videographer therefore 'making themselves unavailable' on said date.

Admittedly if it got to the point of a couple legitimately trying to sue (and really taking the steps, not just emailing me 'you'll hear from my lawyer'), I'd probably just give in & refund the money.

I take a small $200 to book the date. Sortof works both ways in that they won't put up a fight to get it back, and I won't if they get pushy. I had one instance this winter for a September wedding cancelled, claiming the boyfriend was in a motorcycle accident? I'm not sure if that meant wedding was cancelled, or they became low on funds. She asked for her money back. I gave 100 back as courtesy, keeping the other 100 for the bothersome & paperwork etc.

To answer the OP, I wouldn't go trying to 'take' funds after they cancel. That'd be bad practice imho. I would only keeping funds paid to date, or a contracted portion.

Lewis Raymond · July 10th, 2017, 07:08 PM

I don't think it's unreasonable to keep a booking fee even after cancellation since that date has potentially been lost custom for me thanks to the client booking that date. But I urge you all to look at various websites and their policies regarding bookings - for example holiday websites - and see just how many will say how you're liable for the remaining balance even after cancelling or so on... The point is, it seems to be a really common policy.

Nigel Barker · July 11th, 2017, 12:01 AM

If you charge a deposit/booking fee/retainer you need to make it large enough that the client won't just cancel on a whim or because they find a better or cheaper videographer. I would suggest that £100/$100 is too low & £500/$500/30% is large enough to make the client think twice about cancelling.

Lewis Raymond · July 13th, 2017, 04:01 AM

That's a good point, and something I'm seriously considering. I am £100 just now and I think £200 might be more suitable. Having said that, there is a good photographer near me who just charges £100 deposit and his prices start at £1000.

I don't want to make my deposit too high to put people off booking me, but I don't think anyone would argue that £200 is too high.

Chris Harding · July 13th, 2017, 05:14 AM

Hi Lewis

Go for 1/3rd !! I have never had a bride tell me the booking payment is too much and it puts them off cancelling too!! I have a friend who charges $100 (he does photos) and tells brides if they change their mind, he will refund the $100 .... He has lost quite a few jobs to cheaper photogs because they book the cheaper guy AND get his $100 back!!

Lewis Raymond · July 16th, 2017, 04:29 PM

My full day package is £800, so I think £200 will be a fair deposit. Thanks to all for their contributions.

Steven Davis · July 20th, 2017, 10:48 AM

Quote:

Originally Posted by Chris Harding

I have a friend who charges $100 (he does photos) and tells brides if they change their mind, he will refund the $100 .... He has lost quite a few jobs to cheaper photogs because they book the cheaper guy AND get his $100 back!!

Yeesh, I would nix that policy.

Chris Harding · July 25th, 2017, 08:10 PM

I guess you have to find a nice "middle point" where the client outlays just enough money to not make them change their mind and also low enough as to not detract from booking! We don't want them put off because they need to find $1000 upfront for next year's wedding that has a total price of $1500

Brides seem to feel that 1/3rd of the total price is not excessive and for us it's enough to stop her going with another vendor

Arthur Gannis · July 26th, 2017, 12:38 AM

Yes, I do charge clients for cancellations. That charge is their initial deposit of 50%. If they don't like this condition then they don't have to sign below this clause and go somewhere else. I only give them back their full refund if and only if I cannot show up due to health reasons, act of God, death in family. In which case I give the client the option of a qualified replacement videographer or their money back, no questions asked.
I never got sued, never argued, never had issues with this subject. We both signed and both agreed BEFORE the money was given. Nothing to be sore about and cry over. Business is business.

July 10th, 2017, 02:53 PM	#16
Dave Blackhurst Inner Circle Join Date: Feb 2007 Location: Apple Valley CA Posts: 4,874	Re: Do You Charge Clients For Cancellations? You can't "charge" if you didn't have a properly worded contract, and "retainer" or "reservation" fee (words are CRITICAL, if it goes to a court). You certainly won't get very far trying to "charge" something you haven't already taken for your time/trouble. IF you have your contract carefully worded, and you've already taken a fee that sets aside a specific date and time (that you may or may not be able to "re-book"), it's likely you could keep an amount you've already been paid as a "cancellation" fee (think cable or cell phone... although they don't take it up front, they certainly expect it if you bail). Of course you can choose to refund (or allow a reschedule) or not on a case by case discretionary basis. As a "service provider" you are "selling" a block of TIME required to create the deliverable, as well as the final delivered product. It's not always easy to differentiate between the PRODUCT the client receives and the time where the CONTENT is captured, processed, etc., but there are costs and expenses at each stage (including investment in equipment, travel, etc.), so you in theory can reasonably claim a non-refundable portion of the total "price" (for "lost" time and opportunity), and likely defend it if there's a "breech" on the client's side. Reasonable of course is a matter of opinion, and opinions can get expensive, so a properly worded contract is a must before you even try to defend your "opinion", should things get confusing! Hopefully this will be helpful (and read that linked article!) in your contract revisions....

July 10th, 2017, 03:28 PM	#17
Noa Put Inner Circle Join Date: Jun 2007 Location: Belgium Posts: 9,510	Re: Do You Charge Clients For Cancellations? Recently there was a videographer who got sued by his client because she canceled his services and she wanted the retainer back but the videographer refused. The judge had a hard time understanding why the videographer wanted to keep the retainer because there where no services performed but the judge did rule in favor of the videograher as he found that the clients explanation why she cancelled the videographers services was not a valid reason to cancel. I think much depends on the judge and the reason why the services where cancelled.

July 10th, 2017, 03:48 PM	#18
Cary Knoop Major Player Join Date: Jan 2017 Location: Newark, CA Posts: 324	Re: Do You Charge Clients For Cancellations? By the way be careful that you may get what you ask for when you take a retainer! If you are the one who got payed a retainer to perform a service at a wedding and you cancel you could be liable for damages as well. These things work two ways!

July 10th, 2017, 04:47 PM	#19
David Barnett Major Player Join Date: Apr 2009 Location: Philly, PA Posts: 951	Re: Do You Charge Clients For Cancellations? I find it odd a judge wouldn't be able to grasp the concept of 'booking' a date, and the videographer therefore 'making themselves unavailable' on said date. Admittedly if it got to the point of a couple legitimately trying to sue (and really taking the steps, not just emailing me 'you'll hear from my lawyer'), I'd probably just give in & refund the money. I take a small $200 to book the date. Sortof works both ways in that they won't put up a fight to get it back, and I won't if they get pushy. I had one instance this winter for a September wedding cancelled, claiming the boyfriend was in a motorcycle accident? I'm not sure if that meant wedding was cancelled, or they became low on funds. She asked for her money back. I gave 100 back as courtesy, keeping the other 100 for the bothersome & paperwork etc. To answer the OP, I wouldn't go trying to 'take' funds after they cancel. That'd be bad practice imho. I would only keeping funds paid to date, or a contracted portion.

July 10th, 2017, 07:08 PM	#20
Lewis Raymond Regular Crew Join Date: Jan 2017 Location: UK Posts: 33	Re: Do You Charge Clients For Cancellations? I don't think it's unreasonable to keep a booking fee even after cancellation since that date has potentially been lost custom for me thanks to the client booking that date. But I urge you all to look at various websites and their policies regarding bookings - for example holiday websites - and see just how many will say how you're liable for the remaining balance even after cancelling or so on... The point is, it seems to be a really common policy.

July 11th, 2017, 12:01 AM	#21
Nigel Barker Inner Circle Join Date: Feb 2009 Location: Norwich, Norfolk, UK Posts: 3,531	Re: Do You Charge Clients For Cancellations? If you charge a deposit/booking fee/retainer you need to make it large enough that the client won't just cancel on a whim or because they find a better or cheaper videographer. I would suggest that £100/$100 is too low & £500/$500/30% is large enough to make the client think twice about cancelling.

July 13th, 2017, 04:01 AM	#22
Lewis Raymond Regular Crew Join Date: Jan 2017 Location: UK Posts: 33	Re: Do You Charge Clients For Cancellations? That's a good point, and something I'm seriously considering. I am £100 just now and I think £200 might be more suitable. Having said that, there is a good photographer near me who just charges £100 deposit and his prices start at £1000. I don't want to make my deposit too high to put people off booking me, but I don't think anyone would argue that £200 is too high.

July 13th, 2017, 05:14 AM	#23
Chris Harding Inner Circle Join Date: Jul 2009 Location: Perth, Western Australia Posts: 8,441	Re: Do You Charge Clients For Cancellations? Hi Lewis Go for 1/3rd !! I have never had a bride tell me the booking payment is too much and it puts them off cancelling too!! I have a friend who charges $100 (he does photos) and tells brides if they change their mind, he will refund the $100 .... He has lost quite a few jobs to cheaper photogs because they book the cheaper guy AND get his $100 back!!

July 16th, 2017, 04:29 PM	#24
Lewis Raymond Regular Crew Join Date: Jan 2017 Location: UK Posts: 33	Re: Do You Charge Clients For Cancellations? My full day package is £800, so I think £200 will be a fair deposit. Thanks to all for their contributions.

July 25th, 2017, 08:10 PM	#26
Chris Harding Inner Circle Join Date: Jul 2009 Location: Perth, Western Australia Posts: 8,441	Re: Do You Charge Clients For Cancellations? I guess you have to find a nice "middle point" where the client outlays just enough money to not make them change their mind and also low enough as to not detract from booking! We don't want them put off because they need to find $1000 upfront for next year's wedding that has a total price of $1500 Brides seem to feel that 1/3rd of the total price is not excessive and for us it's enough to stop her going with another vendor

July 26th, 2017, 12:38 AM	#27
Arthur Gannis Major Player Join Date: Jan 2012 Location: New Jersey USA Posts: 504	Re: Do You Charge Clients For Cancellations? Yes, I do charge clients for cancellations. That charge is their initial deposit of 50%. If they don't like this condition then they don't have to sign below this clause and go somewhere else. I only give them back their full refund if and only if I cannot show up due to health reasons, act of God, death in family. In which case I give the client the option of a qualified replacement videographer or their money back, no questions asked. I never got sued, never argued, never had issues with this subject. We both signed and both agreed BEFORE the money was given. Nothing to be sore about and cry over. Business is business.