What To Do When a Client Cancels

A few years ago I had a label seminar dining a card with a large company. Two weeks before the session, they phoned me and said: "we want to move the formation of two days later than scheduled." Unfortunately, I was scheduled to go to New Jersey date here. I asked if they could choose again the following week, and they answered, "no, the Group was only for this week." When we realized the dining room session would not occur, the company wanted a full refund.I told them that I had booked on that date for them and that I could not reserve this date with another client. They could not call two weeks prior to the session and expect to obtain a full refund on their deposit. I told them that their initial deposit of $500 is non-refundable and I send them a cheque for the rest. They were furious and does not see why I should not repay their entire deposits. Unfortunately, I didn't have a clause in the contract to explain what would happen if they must cancel. I finished by giving them a full refund on their deposit. He left a bad taste in my mouth and I probably do business with this company again. Lesson learned.Now, I have a clear explanation in my contract with the corporate clients that cover these issues. Here are some things you can be considered in the drafting of your corporate contracts. This is to protect your interests!Cancellation window. If a client gives you a lot of notice, you may be able to find alternate sessions to compensate for the loss of income. Yet, it is not a given. I recommend having staggered Windows cancellation so that enterprises are encouraged to know let me as soon as possible if they have to cancel. For example, if a customer cancels a seminar within 21 days of the event, they will lose a percentage of their deposit. If they cancel within 14 days, the percentage will be more important. Consider how long you need realistic make other arrangements.Reimbursements of expenses. Say Client X has cancelled a seminar 22 days before it was scheduled. They lose part of their deposit, but if you have already booked a flight or a hotel, it should be their responsibility to pay. Keep careful track of all costs on your part, and that your contract clearly state of the costs associated with their account is also removed from the deposit. (Note, by spending, I want to say major purchases such as air travel.) (Only pay for each paper clip that you used.) You can also consider that your travel expenses can sometimes cost more than the deposit itself. If it looks like you will have to shell out lots of money for flights and rooms of the hotel, you can request a higher deposit cover these costs.Cancellation of your part having to cancel a seminar is always as a last resort. That said, emergencies arrive. If you must cancel due to illness or personal emergency, alert the client as soon as possible. Does their burden with too much information (they have to hear your drama), but to apologize and offer alternatives. Able to manage a colleague of the seminar, or it can be moved at a later date? If this is not the case, suggest that you give the customer a credit to use toward a future seminar. You can also add a clause in your contract that allows you to deduct a small percentage of the deposit if the customer refuses a credit.Spelling these things in advance, you will prevent misunderstandings on the road. Make sure that you and your customers have a clear understanding of what the contract stipulates that there is no unpleasant surprises if a cancellation should be necessary.By Juanita Ecker