"Non refundable deposit"

23
3
Joined Jun 22, 2018
This client paid the Deposit of $200 to book the date. My contract says "non refundable" It does not specify anything about taking it off bill if job goes through as planned, but clearly this client is interpreting it as such. How do you all handle the initial deposit? Do you take it off final bill? Thanks for feedback..
Also, do I charge sales tax only if functioning as an LLC or as a DBA ( I am a DBA ) Thanks a million!

Below is most recent email from the client. Gig is 2/29/20
"Also, I was reviewing the contract with my husband and we were wondering, I know it says the $200 for booking the date is non- refundable if cancelled but that doesn’t then get credited towards the total due?"




Show quoted text
 
23
3
Joined Jun 22, 2018
How did you bid the job?
Once they decided to use me, I asked for a $200 deposit to book date. In my contract, I did say the $200 was "nonrefundable" I did not define what I meant by that. They assumed that it would come off final bill,unless the gig was cancelled in which case it would be nonrefundable. So I will at this juncture, say, " Yes, the $200 will come off the balance due."
 
2,333
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Joined Feb 8, 2009
I think it's common sense to figure the deposit is a down payment for future services. The deposit is saving their spot/service on a scheduled day. If they cancel it's non-refundable, if they don't it's deducted from the final bill......
 
3,615
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Joined Dec 18, 2010
What chefbillieb said!

it sounds like your contract (and maybe your understanding of contracting) needs some improvement. An unclear mutual understanding of the deal, Whether being explained during the marketing pitch or written in the contract, is bad business.
 
23
3
Joined Jun 22, 2018
What chefbillieb said!

it sounds like your contract (and maybe your understanding of contracting) needs some improvement. An unclear mutual understanding of the deal, Whether being explained during the marketing pitch or written in the contract, is bad business.
Yes indeed. I am definitely in the process of improving my understanding and executing of my contracts. Thank you for your feed back. It is appreciated.
 
416
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Joined Sep 17, 2018
I agree with the others, a deposit goes towards the final payment if the contract if fulfilled, it's not a separate charge you get to keep for nothing. Also I would always charge sales tax unless you want to figure it out after the fact and take it out of your profits. You still have to pay it regardless of if you are a DBA or a LLC and tax evasion and audits are not a road you want to travel down.
 
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Joined Jan 31, 2012
Im curious what your deposit amount stemmed from, like a flat fee vs precentage of the event, etc.
Our deposit to hold an event date was either based on a percentage of the final OTD price, or specifically designed to cover food cost and other purchases for their event. If their event was cancelled before money was spent, we were ...marginally flexible in partial refunds, comensurate with the circumstances. (and attitude). But if its close enough to have begun food and supply purchases, rental deposits etc, then all bets are off and they lose it, period.
If the event took place, the deposit was applied to balance owed, as stated above.
 

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