Custom order cancelled.

[Former_Member]

I have been working with a customer to do some custom bracelets. Sent her numerous photos and emails back and forth, took a 50% deposit to order materials and after receiving a prototype, which she paid for, she has decided not to go through with the order. My question is, do I refund her deposit? She is not asking for that. I can likely use the material but would not have chosen it myself. But I have also spent a lot of time researching the materials and communicating with the customer. I've never had a custom order cancel before so just trying to figure out what to do.

Thanks for your help.

[GildedXRoseXStudio]

Aw that's a bummer, Angela. Sorry your customer cancelled on you. Did she say why?

I'm not really sure what the best course of action would be as having a custom order get cancelled is new to me. I hope someone else can help here though!

[Former_Member]

Was the deposit to pay for the research, development, and prototype and the balance for the finished item?

[heartsabustin]

You earned that money - if I were taking deposits on customs (normally, I require it all upfront), the 50% deposit would be non-refundable. If you don't have that covered in your shop policies, you should.

So, I say no.

[Former_Member]

That's a tough one! I've never had to deal with that (thankfully) but I know that, whatever I did, I'd want to make sure she's satisfied even if she didn't wind up buying from me. Lesson One- make something in your policies about refunding (or not refunding) special orders. I would say that the 50% deposit is non-refundable. I think this is a normal business practice. Then again, you don't want her to walk away mad either. Good luck to you! I'll be checking back to see how it goes :)

[LittleAcornToronto]

What are your shop policies on the matter? It states in mine that Custom Orders are non-refundable. Generally I also don't start on custom orders unless I receive 100% of payment up front.

I would think that deposit is yours... If she's a bride, then she would definitely know that deposits are generally non-refundable.

[ziezoDesigns]

Phew - that's a tricky one. I personally never start a custom order unless it is fully paid for. However, depending on your shop policies, I would not refund any money that you spend on materials that you would otherwise not have bought yourself. Also calculate in the time that you spend on this.

If she has not asked for a refund, I would sit back and wait to see what happens for a few days - she might assume that the deposit is non-refundable.

[AlbracaDesigns]

I don't start on a custom order either until I have 100% of the mony up front. Unless it states otherwise in your policies I would not give the person their money back.

[RunkPockDesigns]

I wouldn't give a refund on the deposit since you did a lot of work and designed her design for her. I've only had this happen a couple of times, but I have not refunded their deposit as that covers the time I spend customizing the design for them and is a good back up if something like this does happen, that you didn't just waste a lot of time and money on materials you might not even use again. I still have a bunch of lime green paper I can't return that was from a cancelled order (but I kept the deposit so it is paid for)

[Former_Member]

In my opinion that is what the deposit is for. So that if the customer does decide to cancel you didn't waste your time and money creating the order. Speaking as a bride, deposits are always thought to be non refundable and if I canceled on any of my vendors I would never expect the money back and would honestly feel awful about receiving a refund. You earned that deposit. I see no reason to refund it.

[Former_Member]

I didn't see anything in your policies that discussed this situation, but I would think that even without stating it, a buyer should know that they would lose their deposit. Is this a wholesale or a retail order?

[Former_Member]

I would not refund the money. That is what the deposit is for. It covers your time, cost, and energy put into the work you did do. People take deposits just incase the order is cancelled....

[Former_Member]

I wouldn't refund it.

That's what deposits are for. . .in case they cancel, you didn't just waste you time and money. . .

[studionubbo]

No refund! That's why you ask for a deposit, incase situations like this occur - so it covers you for the time you've spent and the work you've done so far. :)

[Former_Member]

I would not return the deposit. That is why you have one, so in case the customer you have not done a lot of work for nothing. Your customer should be aware that it is a nonrefundable deposit.

[Former_Member]

I agree with the others, brick & morter stores dont offer deposits, that is what they are there for too protect the seller.

[Former_Member]

Thank you everyone! I definitely will make my policies more clear but I feel better getting a consensus about how to handle it.