So many business owners end up in really difficult conversations with their clients on the Big Three: Refunds, Cancellations and Completions. Hurt feelings, strong emotions, broken client relationships… it can all be so painful.
Often the pain is unnecessary. Here’s one thing I recommend doing to head off the pain. And no, it’s not having clear policies… although that’s the prelude.
Four minutes exactly:
What’s your approach and experience with refunds, cancellations and completions? Questions to ask or wisdom to add, I’d love to hear!
With love
Mark Silver, M.Div.
Heart of Business, Inc.
Every act of business can be an act of love.
The Heart of Your Business
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16 Responses
I bet that also means that people remember that you had a conversation and then go look up the written policy when it becomes relevant to them.
It definitely helps, right?
I have a cancel policy I L O V E!!!!! I always tell people first session (if he/she is making another time with me), and it’s easy because I love it so much! (and they always smile and do too.)
Here ’tis … feel free to steal it:
(first mentioning some logistics. I am a bodyworker/CST that works out of my home office.)
1. 24 hr. cancellation. … If you cancel less the 24 hrs. before session you pay 1/2 the cost of the session. (this works for me as I am at home)
2. THIS IS THE PART I LOVE!! (and always get a smile from them too). …. it’s reciprocal! …. so if I cancel on the client with less than 24 hrs. his/her next session is 1/2 price. 🙂
3. I give amnesty 1x yearly. (shit happens. + I have the opportunity to go over the policy again) … I don’t require/request they offer reciprocal amnesty, but the few times I’ve either messed up or had to cancel, my clients have been quite kind and generous with me.
funny. I like my policy so much I’m happy even stating it here!!
This seems like a decent policy. I imagine the reciprocal nature of it helps your clients accept it as reasonable. Good idea!
I love this idea and I think I’ll use it myself! Thanks for sharing it.
That’s fantastic, Kimberly- and so great that you found a policy you love. Who says they love their cancellation policy? But you do! woo-hoo!
Hi Mark,
The piece I can’t quite ever figure out is about (in)completions – what if someone buys a package, uses the first few sessions, and then vanishes? If someone completes early and doesn’t need their last session(s), then I’m fine with refunding the remaining session(s) minus the discount, and we’re all square. Or they can choose to keep them to use for a check-in at a later point. But every once in a while someone just disappears, or they go a really long time (year+) without replying to emails. I have learned that some people are quite comfortable leaving their sessions and then returning later, but I have two clients who just disappeared, and I don’t know what to do with the balance I am holding for them!
Linda- there’s not much you can do. I would suggest not worrying about it and just let it be. I had someone pay me over $1000 for a series of sessions way more than 10 years ago- they disappeared and never showed up… What can you do?
Great advice Mark. I had someone sign up for my mentoring group, (which has a 6 month commitment), and she paid for the first month but then said she wanted to delay starting by 6 months because of life circumstances. She hasn’t got back to me, despite my emailing her, and the group is now going to close for want of members.
I wouldn’t feel inclined to refund that money because she already received a free 30 minutes mentoring because of signing up during a spring special.
My thinking was, well she’s paid and the group is there for her when she’s ready. But now, just over 6 months since she delayed, the group won’t be there.
There are so many unexpected issues that crop up, even when the policies are in place.
I’m wondering if I should have anticipated this situation and had a ‘no refund’ policy in place at the start.
PS Love seeing such lush green growth in your outdoor videos. I’m still getting used to it, after all that snow and ice!
Juliet- it is definitely lush green here! 🙂 Yeah, it’s true, you can’t account for these things. And some situations you can’t fix with policies- you just have to flow with it… It is good to figure out what you’re comfortable with, especially with deposits- are they fully refundable? Nonrefundable? Partially refundable? How long is the refund period?
As I said, if you try to anticipate every situation, you end up with a strange, long, off-putting policy. Keep it simple, and it will cover 99% of situations. the 1% that crop up, you’ll figure out.
Nice post. I learn something totally new and challenging on websites I stumbleupon every day. It’s always useful to read through articles from other authors and practice something from other sites.
Thanks, Muhammad.
Very informative Mark! Thanks for the video.
Thanks, Amrita.
I laughed out loud at the part where you whispered the secret that no one reads. As one who reads, this was a real shock to me when I first opened our business but it doesn’t take long to realize this truth. It’s also a great reminder that no one else sees or moves through life quite the same way we do.
Hi Susan- I know, right? 🙂 But… then again I could read more, myself. haha!