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Deposit Received, Customer Cancelling.

Centro Graphics

New Member
Good morning all.

We did a blind (no artwork was given) price/estimate over the phone for a large Merc Sprinter. Spec was the usual name and numbers etc and to have a digi print that was relative to their industry, no problem. Explained that the image would be a reasonable size for the money and would press ahead with a layout. Received a 50% deposit as its a new customer. Found suitable image for the print, did a simple design including the image and sent off. First reaction was good, then a few days later their own design turns up, similar to mine but a huge image on each side and rear, also a logo right across the width of the bonnet (hood). Whoah I say this is worth a lot more than I quoted.

Anyways after some discussions, quite a few emails they still want a large image, which is fine but its more money. No they say, you gave us a price, yes I did but it was based on verbal information. It all came to a head this morning where neither would budge, so lets cancel they said, fine I say, suits me as I will be losing money.

Now they want their deposit back. Part of me says yeah what ever, dont need it, then part of me says, screw that we have spent time on this already.

Trying to keep this short.

What would you do, give it em back, or not, or (as I was thinking) give em back half of the deposit?

Never had this situation in 15 years in business, I was quite pleased with myself that I didnt need the work, or the hassle of doing a job for not much money.

Opinions appreciated
 

fresh

New Member
Does your invoice say something along the lines of "deposits are non-refundable once the job is started"?

If so, I would keep either all of it or an amount that based on at least 2 hours of your shop rate time. Possibly more.

Or you can offer them a store credit for 1/2 the deposit, instead of refunding it.
 

Centro Graphics

New Member
No we dont have that statement on our invoices, hmm lesson learnt there.

Its not a big job, its the principle of it, they are taking the p!$$ really expecting to have huge digi prints for the same money. The extra cost would be approx an additional 30% of the original price I gave.
 

OldPaint

New Member
give them a bill for TIME SPENT........DEDUCT IT FROM THE DEPOSIT....and return the rest......this is as close to staying legal as you can.
they owe you.......for your part, you return what is theirs.......as you didnt start the job......other then time investment.
 

Centro Graphics

New Member
give them a bill for TIME SPENT........DEDUCT IT FROM THE DEPOSIT....and return the rest......this is as close to staying legal as you can.
they owe you.......for your part, you return what is theirs.......as you didnt start the job......other then time investment.

Thanks for the valued feedback. Though you say we didnt start the job, but we did as we provided design.

Its funny really as they went with us initially as we treated them right and were interested in their project with enthusiasm. We werent the cheapest (on this blind quote :omg:) but they liked us the best and our work on our website.
 

Pat Whatley

New Member
Deduct a REASONABLE amount from the deposit, refund the rest. They're not going to like it but you did the work, get paid for it.

Or you could do what I'd end up doing....just give it to them so they'd go away. Thankfully I've never had to do that.
 

neil_se

New Member
I've never been in quite the same situation but I have imagined it might come up one day so I do 'coverage mocks' so the customer can visualise the coverage and I've got something to reference back to if the size changes dramatically. I use the same drawing to calculate my materials usage for the quote anyway. Also it stops a lot of the 'I want to see what it looks like before I commit' arguments.
 

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MikePro

New Member
Thanks for the valued feedback. Though you say we didnt start the job, but we did as we provided design.

Its funny really as they went with us initially as we treated them right and were interested in their project with enthusiasm. We werent the cheapest (on this blind quote :omg:) but they liked us the best and our work on our website.

watch yourself. if you gave a client layout/artwork, it's not unheard-of that they kept shopping the price while you were designing and then may have gotten a cheaper quote from some guy, using your design/quote, that was able to shave a few bucks off with minimal layout time.

if they made a deposit, they've now contracted you to do work for them. and if they back-out... then you are legally entitled/obligated to return said deposit minus $$$ for your costs (design time) to that point.
you still may wind-up seeing your design driving around town, but at least you'll know that you were PAID for your hand in its creation. :toasting:
 

Centro Graphics

New Member
Some good points there guys thanks.

Its never happended to me either, I think I pre empted the decision and was relieved I to be honest as it was turning into a stinker and may of had a potential of a moan when job was done. Thankfully I am way too busy to worry about it.

Another thing is I prob wont see it as its over 30 miles away.

I will pay em back some but not all.
 

anotherdog

New Member
Also time to look at putting some boilerplate contracts in your quotes.
There is plenty around that applies to graphics and signs on the googleverse.
 

fresh

New Member
I've never been in quite the same situation but I have imagined it might come up one day so I do 'coverage mocks' so the customer can visualise the coverage and I've got something to reference back to if the size changes dramatically. I use the same drawing to calculate my materials usage for the quote anyway. Also it stops a lot of the 'I want to see what it looks like before I commit' arguments.

We do the same thing. We usually use pictures of their actual vehicle, and I draw boxes around the area that I'm quoting. If they say "well, what about that area, under the window?" I say "that will be $75 more" or whatever it is.
 

ddarlak

Go Bills!
inform them that the deposit is to protect you from doing work and not getting paid for it. deduct a hansom amount and send the rest back.
 

Centro Graphics

New Member
Thanks for all the input guys, its good to bounce things off other people.

I ended up refunding all but a bit of design time cost, but as I expected they complained about that too, and threatended to bad mouth my company. Not worth it so just sent it all back, as I said thankfully we are so busy that the money wasnt missed. All the work we have on is quite high profile, and high value. To lose a one van company job didnt hurt thankfully.

Thanks again, great opinions as ever on this site.
 

Doc Savage

New Member
If I were you I would add that customer to my do not deal with list. Next time they come to you and ask for a quote or want something done. I would tell them that you have no time for the job they are wanting done. It does not seem like they would give you any credit even if you did their job correctly. I would also try to keep an eye on them and make sure they do not try and use your design/layout on their vehicle. If so I would threaten to sue them for that.
 

skyhigh

New Member
I ended up refunding all but a bit of design time cost, but as I expected they complained about that too, and threatended to bad mouth my company.

LOL.... you should have told them, that you would bad mouth them right back.....even if you had to make stuff up.
:Oops:
 
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