By Juanita Ecker
A few years ago I had a dining etiquette seminar booked with a large corporation. Two weeks before the session, they called me and said, “We want to move the training to two days later than scheduled.” Unfortunately, I was scheduled to travel to New Jersey that day. I asked them if they could pick a time the following week and they replied, “No, the group was only there for that week.” When we realized the dining session wouldn’t take place, the company wanted a full refund.
I told them that I had reserved that date for them and I could not book that date with another client. They couldn’t call two weeks before the session and expect to get a full refund on their deposit. I told them that $500 of their initial deposit was nonrefundable and I would send them a check for the rest. They were furious and saw no reason why I should not refund their entire deposit. Unfortunately, I did not have a clause in the contract to explain what would happen should they cancel. I ended up giving them the full refund on their deposit. It left a bad taste in my mouth and I likely won’t do business with that company again. Lesson learned.
Now, I have a clear explanation in my contract with corporate clients that cover these issues. Here are some things you may want to consider when drafting your corporate contracts. It’s all about protecting your interests!
Cancellation Window. If a client gives you plenty of notice, you may be able to find alternate sessions to make up the loss in income. Still, it’s not a given. I recommend having staggered cancellation windows so that companies have an incentive to let me know as early as possible whether or not they have to cancel. For example, if a client 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 substantial. Consider how long you realistically need to make other arrangements. (more…)
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