30 Sep 09 When to Offer Your Client a Refund

When do you refund a client’s money? The contract will stipulate certain conditions, of course, but what if something happens that neither side can predict?

Sometimes a client simply needs to be fired. He will not show up for appointments or remains vague about what he wants or there is simply no pleasing him. Certainly, any abusive client needs to be terminated immediately. If there is a written agreement in place clearly stating that prepaid services are not refundable, you’re in the clear. Otherwise, it may be wise to return his money in order to free your time to work with clients who want and appreciate your services.

Your communication style may not dovetail with your clients. Unless you have a partner or associate you can pass the problem to, this can be difficult. It doesn’t happen often, but when frustration levels rise for both sides, it may be time to bow out gracefully and consider the money well spent.

Does your company philosophy have room for compassionate refunds? You don’t have to fall for every sob story that comes your way, but occasionally a client will have real life crises such as an illness or death in the family. You can refund the money or apply any funds to a future event, if that seems possible. Where does business end and compassion begin?

Tags: Appointments, Business End, Communication Style, Company Philosophy, Compassion, Death In The Family, Frustration Levels, Future Event, Life Crises, Money Free, Money Order, Partner, Prepaid Services