Cancellation Policy - Who has it?

ckingclean

ckingclean

Cleaning with Aloha
I just had a guy cancel the job scheduled for tomorrow (sounds like he found someone cheaper). I had a feeling this guy might do that too! This drives me crazy! Now not only is the job gone, but I've got employees that were scheduled to work as well. I'm over it and am going to enforce a cancellation policy in the future.

Who employs a cancellation policy? Do you get a credit card number? What is the time limit - 24 hrs, 48 hrs, etc? How much is the charge?

The idea would be not to make money when they cancel, but to discourage it from happening.
 
Include a cancellation charge on your proposal and get it signed ASAP and invoice them for it and include your proposal agreement highlighting it. Most of the time they won't cancel because they don't want to be out of the money.
 
I used to work at a sailing center where we taught lessons. We would always get a credit card # to hold the spot in the class. This seemed to do a good job at keeping people from canceling.

Do you guys do this as well or just put in the contract?
 
Wonder if various places have laws preventing charging anything of a fee for services not rendered...surely if under contract you could be compensated in full if they fail to let you perform the work. Judge might not see it same though and consider it petty trying to collect. Surely isn't fair..customers just don't get it that short notice cancellations cut deep into your profits and ability to do business or shoe the kids feet. They just don't understand that once the time slot passes by it can't be made back up. They think that we can just stick someone else on that spot and make the same end dollars..horse pucky! We should be able to count on them and schedule things out abit.
A salon I was working for uptil recent is a good example of how even when ya think yer good it can go bad. Worked for this place for years and have pretty decent history with them. The owners nephew had to be there when I worked for some silly reasoning and but he started canceling on a semi regular basis due to having to be somewhere else. When I brung it up to owner he told me to tell his relative he can't be doing that. He wants the place clean and the floor not slippery right so we straghten it out awhile and then guess what... he goes and fires his nephew for something unrelated and sticks me with somebody else (stylist lady) but with the freedom to leave and set alarm. Sounds great eh?..nope, they started closing upto an hour late in doing peoples hair. Sometimes it was just the stylists doing each others hair. I'm like what..so I kick it in the back waiting in the kickback wash chairs stting idle. Next thing I know I am getting canceled a couple time by the new girl for no sound reason. I said to hell with it and stopped calling them. Owner wants floors done they can call me and I'll charge them the higher amounts suitable for an unkept place and do it when no one around..

..Anyways, what was the topic,. Oh yea, dumb arse customers that don't get it. On a side note I did get a 'c' note palmed to me as xmas bonus by one regular account. Rare indeed this day and age I'd say.
 
On a side note I did get a 'c' note palmed to me as xmas bonus by one regular account. Rare indeed this day and age I'd say.
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I must be doing it backwards.............I gave out c note gift cards to some of my best clients.
 
$50 residential early termination fee

10% commercial early termination fee

Never enforced the residential, but I have sent in a bill for a canceled commercial project. Spend all week preparing and buying supplies only to get canceled at the last second? I don't think so. The project manager completely understood and still uses me all the time.
 
RMedbery said:
And I dont think you would be able to.
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That's exactly why I've been sitting here almost all day trying to find some laws regarding this issue ;)

So far, no luck, looked up SC Code of Laws and all the good stuff, but I guess I'll have to call somebody.

New Years party tonight and my neighbor is a lawyer, maybe he has some answers for me.
 
I am not sure how you would go about enforcing this or if you can but when you do the math, think about your time and what it would take to collect, is it really worth it?

I am sure that if it was in the contract then you have a better leg to stand on but think about it for a minute.

Say they cancel so you are like that is cool, I will send them an invoice with the copy of the contract and they are like whatever and not paying it.

You finally send some more notices and go file with the courthouse and want to collect for your time lost, contract fee, court costs, etc...

When you figure in your time, miles driven, other costs and end up in small claims court a few months later, it is still up to the judge to decide.

One other thing to think about...........There is no law that will make them pay you. There is no debtor's prison like England had a century or two ago so how are you going to collect???

There are judgement companies out there charging a % of what you are trying to collect to bug them, try to put liens on their property, etc...

When you finally do the math, deal with the stress, b.s., them telling everyone around about the cancellation fees that they do not remember you telling them (even though you did tell them and it is in their contract), is it really worth it?

Not trying to argue here but trying to see how many have collected on this before or tried.

Thanks.



_________________
Superior Power Washing<O:p</O:p
Chris Chappell<O:p</O:p
Exterior House Cleaning in Corpus Christi Texas
 
Christopher said:
I am not sure how you would go about enforcing this or if you can but when you do the math, think about your time and what it would take to collect, is it really worth it?

I am sure that if it was in the contract then you have a better leg to stand on but think about it for a minute.

Say they cancel so you are like that is cool, I will send them an invoice with the copy of the contract and they are like whatever and not paying it.

You finally send some more notices and go file with the courthouse and want to collect for your time lost, contract fee, court costs, etc...

When you figure in your time, miles driven, other costs and end up in small claims court a few months later, it is still up to the judge to decide.

One other thing to think about...........There is no law that will make them pay you. There is no debtor's prison like England had a century or two ago so how are you going to collect???

There are judgement companies out there charging a % of what you are trying to collect to bug them, try to put liens on their property, etc...

When you finally do the math, deal with the stress, b.s., them telling everyone around about the cancellation fees that they do not remember you telling them (even though you did tell them and it is in their contract), is it really worth it?

Not trying to argue here but trying to see how many have collected on this before or tried.

Thanks.



_________________
Superior Power Washing<O:p</O:p
Chris Chappell<O:p</O:p
Exterior House Cleaning in Corpus Christi Texas
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Your absolutely right Chris. I am all about factoring in the actual time and cost it takes to collect. Usually it's not worth it.

My main goal in structuring a cancellation policy is to discourage it in the first place. I don't really plan on going after the people to collect. I know a few will still cancel, but if I can stop the majority, that would be great!
 
PressureX said:
I have one in our my agreement that cancellations must take place no later than 2 days prior to the scheduled job. If they cancel lets say 1 day before the full cleaning amount will be charged.

Never had to enforce it ....
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Since you never have had to enforce it, your policy must work pretty well! That's what I'm looking for.
 
RMedbery said:
And I dont think you would be able to.
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In my experience you don't have to enforce it.

My work is different, but here is what my 12mo/24mo/36mo contract cancellation reads:

LIABILITIES AND NOTICES:
A. Sonitx, Inc will not be held responsible for any equipment failures. Our filters can keep the coils clean but they will
not remove what has already contaminated the coils.
B. Sonitx, Inc reserves the right to move the change dates around within a 20 day range as needed to adjust to changing
routes or other unforeseen events.
C. All filters will remain the property of Sonitx, Inc and non-renewal of this contract will result in a final trip charge
equal to 1/6th the yearly contract amount to pick up our filters, or 1/12th the yearly contract amount to pick up our filters if you
have the filters off the roof and waiting for us in a safe location.
D. (Client) will be responsible for any loss or damage to the filters due to vandalism or theft.

If they are concerned about their credit rating they will pay.

If they are not concerned about their credit that means they just don't have the money to pay and you won't get it anyway.

Most of my cancellations have been because of a lack of money and the two that did cancel due to a change of ownership had the filters waiting for me in the building and helped me load them.

Somebody can squawk all they want about not being informed about a cancellation policy but if they signed it, they are bound to it.

Just having it in the contract will do wonders.
 
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