Cancellation fees

Replies to This Discussion

Permalink Reply by Belina Raffy on April 19, 2010 at 7:39am

Hi Penny,

GREAT question. If it's coming from the client side (versus us) I've just recently added a cancellation fee policy for a specific big project (4 workshops over a year)...which splits things out between 'Cancellation' and 'Postponement' and is based (as you'd expect) on the notice they give...so
6 weeks prior - cancellation fee of 50% of full fee/postponement is 25%
From 4 weeks to 1 week before - cancellation 70% of full fee/postponement 50% of full fee
Less than 1 week before - 100% of full fee/postponement 75% of full fee

Also have a clause that if the course is postponed but not rescheduled within 60 days - it will be treated as a cancellation.

I hope that helps. What do other people do?

Belina

• ▶ Reply

Permalink Reply by Bob MacKenzie on April 22, 2010 at 12:13am

Hi, Penny (and Belina)

For what it's worth, here's my 'cancellations clause' - though I've never had to invoke it! It's based on great advice I picked up years ago from Nick Heap. (Nick - if you're reading this, I hope you are well, and thank you).

'Cancellations'

If a client books my time on a specific date, I regard this as a contract by which they agree to purchase my professional time on that day. If subsequently they find that they cannot use the booked time and date for the work that is originally conceived, instead I will offer to use the equivalent amount of time to help them or their organisation in another way, if that is what they would prefer, and if they are able to give me seven days’ notice. This could include writing, thinking, research or observing their organisation in action and face-to-face developmental activities etc.

If it’s not possible for my client to find replacement work before this seven-day period of notice comes into effect, I will charge a cancellation fee. This will be 50% of the agreed consultancy fee if they give me one to seven days’ notice, and 100% if they give less than one working day's notice. I treat a postponement as a cancellation that is followed by a re-booking.

However, I will give my client a 50% discount on the next session if I myself have to cancel or postpone a booking within one to seven days of a scheduled event due to unforeseen circumstances.

I will give the replacement event entirely free if I have to cancel or postpone it with less than a day's notice to my client.'

I hope this helps. Best wishes. Bob

• ▶ Reply

Permalink Reply by Penny Walker on April 22, 2010 at 1:16am

Hi Bob

Thanks for this. I like the way you have a reciprocal clause. Nice.

However, I will give my client a 50% discount on the next session if I myself have to cancel or postpone a booking within one to seven days of a scheduled event due to unforeseen circumstances.

I will give the replacement event entirely free if I have to cancel or postpone it with less than a day's notice to my client.'

I'm interested in the different milestones and proportions that you and Belina have shared. There's a common pattern, but differences of detail.

Thanks for sharing this.

Penny

• ▶ Reply

▶ Reply to Discussion