The Necessity of Obtaining Deposits for Bookings

Contracts, Terms and Conditions, and Deposits are vital for all businesses, regardless of how big or small they are. 

Whether your inaction is out of fear or a lack of confidence, not getting that deposit up front can end up by coming back to bite you.

This may feel like we are attempting to close the door after the horse has bolted, however, there has never been a better time than now to review your businesses terms and conditions, including non-refundable deposits.

I have seen many posts on Facebook about how to deal with customers who cancel at the last minute. If you don't already have a cancellation policy or deposit system in place, it is important to take steps to protect yourself with future bookings.

Asking for a non-refundable deposits in your terms and conditions is a solid way to protect  your earnings especially in an industry where last minute cancellations are likely to leave you out of pocket.

By asking customers to pay a deposit upfront, they are able to secure their event and the services upon which you have both agreed. A deposit is a gesture of good faith and commitment from the customer. This will ensure that you have at least part of the funds before they receive whatever goods and services you are providing. Though it's not a substantial amount of money, a non-refundable deposit is generally used to cover the unavoidable outlay of stock and materials or other bespoke items as a kind of security against any kind of cancellations.

The timing between the initial deposit and the final payment of the remaining balance should be pre-determined between you and the customer. The deposit should be set at a realistic and reasonable level. If you ask for too much, you may find that even with the most plainly worded terms and conditions, non-refundable deposits deemed too expensive can be difficult to enforce. Remember, it can only be deemed non-refundable if it covers the actual cost of the loss that may results from a cancellations.

Be assertive, and do not apologise

Many small businesses, especially new ones, find it difficult to ask for money at all. 
But if you want to be successful in the business world, it’s a fear that you must overcome. The first time you ask, it might feel uncomfortable, but do it anyway.

I have found that one of the easiest ways to overcome this fear is to not ask, but tell. After the initial consultation with your client, simply explain the next steps if they have indicated they would like to proceed. Say something along the lines of: 

“If you would like to proceed with the order, just let me know, and I will email you a full description of work, my terms and conditions, and an invoice for xx% of the event cost as a deposit.” 

Happy Ballooning! 

Sue 
www.suebowler.com
Follow me on Instagram @suebowler