deposit and refunds

[burnttoast8]

What is your policy about refunds on deposits?

Say a client decided to go with another photographer for event photography after the contract with you is signed?

Do you return the deposit right away?

Any paperwork that must be filled out for the client?

do you keep the deposit?

[Steve Parr]

If I had a signed contract, I'd make sure that included in that signed contract was something that stated that the deposit was non-refundable.

A contract is a contract. If someone signs it, and then braks it, there should be some ramifications...

[sfaust]

And since you can't generally re-book a wedding on short notice, the closer you get to the actual wedding, the higher your cancellation fees should be.

I shoot mostly commercial work, and the cancellation fees step from 0% with > 72hrs notice, to 50% with > 48hrs notice, to 100% for 24hrs notice or less. Also, any expenses that were paid as part of the project the client is also responsible for in the event of a cancellation. Generally we get a 30% advance on a project to cover these out of pocket expenses.

Commercial photographers can re-book work with short notice, unlike a wedding. So if a tiered cancellation policy is used, it makes sense to make it months and weeks, and not days and hours :)

Most wedding photographers I know ask for a non-refundable deposit up front, and that is their cancellation fee. Many take it a step further and ask for a bit more the closer they get to the wedding date, which is also very fair. If they booked a photographer, then canceled, they denied him/her of their normal income for that day. Its only fair for the photographer to recoup some of that income, especially if canceled on short notice.

[amccomis]

Non-refundable. Period. Keep it -- It covers your time/costs of dealing with the situation.

Some photogs say they will refund it only if they rebook the date. Even if I rebook, I take it as covering my administrative fees for dealing with the client in the first place.

Granted; if there is an extenuating circumstance, I take that into consideration. But hiring someone else out from under you is not grounds for a refund.

My "deposit" is collected at the time of booking, and is typically equal to 1/3 of the cost of the job. I get that up front, and a 2nd 1/3 a week before the wedding. Final 1/3 (or) 1/2 of the remainder of the album, whichever is greater when I present their pre-designed album.

[Mike]

I call my "deposit" a "booking fee" and state that it is non refundable. I never call it a "deposit".

[tim]

It's a retainer or booking fee, and it's non-refundable. There was a lawsuit in New Zealand some time ago that said even if a customer has paid their entire amount and the contract says it's non-refundable but they cancel at the last minute they can ask for a refund of the majority of the fee.

[burnttoast8]

Do any of you return your retainer if you cancel for some reason?

[Stocky]

uhhh.. maybe I misunderstood that question. Do you want to know if you should return the money if YOU are the one who cancels?

[burnttoast8]

uhhh.. maybe I misunderstood that question. Do you want to know if you should return the money if YOU are the one who cancels?

yes, I am asking that now.

[Alexajlex]

yes, I am asking that now.


I'd say it is only fair that you do if you canceled.

[Stocky]

Alright... now I am curious: Is there anyone here that WOULD keep the money if something came up and they were the ones who had to cancel?

[Moments]

Alright... now I am curious: Is there anyone here that WOULD keep the money if something came up and they were the ones who had to cancel?

If the photographer cancelled and kept the deposit or retainer, you know that a lawsuit by the client would follow.

[tim]

It's not ethical to cancel, the only reason i'd ever miss a wedding is if I was unable to attend due to medical reasons or maybe a death in the family. In that case I have a network of contacts who can cover for me, which is far better than leaving a customer in the lurch. I've covered for friends and colleagues who've been ill occasionally.

[Stocky]

Oh, I know. I was a little surprised at the question myself. You better believe that I would bring that photographer to court.

[tcphoto1]

I see the retainer as an agreement between myself and the Client as a binding agreement. If they change their mind no matter what the reason, they forfeit the retainer. More disturbing is why they pursued and then booked another photographer. How close were you to the event? What kind of revenue would be generated by shooting and then prints? Do you have paperwork or at least saved emails?

[Gabe63]

What is your policy about refunds on deposits?

Say a client decided to go with another photographer for event photography after the contract with you is signed?

Do you return the deposit right away?

Any paperwork that must be filled out for the client?

do you keep the deposit?


I am not a photo guy but in business a deposit is not refundable. That is what a deposit is for, to hold the right to xxx. If you pass then you pay for the right.

[NZDoug]

www.blinkbid.com

[PhotosGuy]

I shoot mostly commercial work, and the cancellation fees step from 0% with > 72hrs notice, to 50% with > 48hrs notice, to 100% for 24hrs notice or less. Also, any expenses that were paid as part of the project the client is also responsible for in the event of a cancellation. Generally we get a 30% advance on a project to cover these out of pocket expenses. Pretty much a standard practice, & a good point!

Dealing With Difficult To Satisfy Clients (http://photography-on-the.net/forum/showthread.php?p=2229202)

[bham]

I am not a photo guy but in business a deposit is not refundable. That is what a deposit is for, to hold the right to xxx. If you pass then you pay for the right.

By law in some states using the word deposit can make it refundable, that is why attorneys have recommended retainer or booking fee as the exact wording. If you think of a deposit like on an apartment it is returned at the end of the lease given certain curmstances. Also make sure to put non-refundable retainer or booking fee.

[Gary_Evans]

By law in some states using the word deposit can make it refundable, that is why attorneys have recommended retainer or booking fee as the exact wording.


Same as in the UK. A "Deposit" is refundable, but a "Booking Fee" isnt

[Alexajlex]

Good point. I was not aware of that.
Learning new things every day

[sfaust]

By law in some states using the word deposit can make it refundable, that is why attorneys have recommended retainer or booking fee as the exact wording. If you think of a deposit like on an apartment it is returned at the end of the lease given certain curmstances. Also make sure to put non-refundable retainer or booking fee.


I agree. You either need to specifically state its a "non-refundable deposit", or call it a fee, booking fee, retainer, etc, as noted.

[EnronRocks]

I do not deal with large amounts of money from one person, but I offer 100% satisfaction on prints - but I offer no refund what so ever. If they do not like a print or a session, I will redo it at no charge. As for events, if they do not like the work I will do another event of equal or lesser time that is in or around the same location.

[photoguy6405]

As others have said, wording is important. Regardless of anything else, the word "deposit" implies that it is refundable. Rightly or wrongly, and most likely due to the housing rental industry, this is what many people think. The business person would head off potential hassles to use a term like "booking fee" or something similar.

I don't have this issue since I don't do weddings or portraits, but I would be reluctant to refund any money in the event of a cancellation. Except in some tragic circumstance, i.e. the bride's mother dies in a car crash two days before the wedding and they have to cancel, or something like that. Then I'd give a refund.

[canuck88]

This has probably been mentioned, but never, ever call it a deposit. Always a 'retainer'. Trust me.

[sfaust]

... anything else, the word "deposit" implies that it is refundable. Rightly or wrongly, and most likely due to the housing rental industry, this is....

Here is a good run down on the legal definition of deposit.
Lectric Law Library's Lexicon (http://www.lectlaw.com/def/d139.htm)