Client cancels order when already complete

If the order had not been started then I'd refund.
Otherwise its chargeable.

For digitizing, i give it Free as i already digitized it

Make it a policy from the get go!! 50% deposit, all digitizing paid for up front, and no refund on a digitizing order after the customer has approved for digitizing. If you have it on your approval sheets and keep everything documented, it's already known up front and not up for debate. If they have you order goods and then cancel before decorated, they need to know up front that they are liable for a re-stocking fee as your distributor will more than likely charge you. We have a pretty extesive set of order approval information on the customer approval sheet, they read and sign and assume the liability. Now if it's someone you have worked with before, maybe give them an in-house credit for future orders. You have to be careful of the fact that some competitors may get ahold of your client and then tell them they can beat your offer by so much and make the customer want to cancel and switch, but in our industry, we end up taking steps that cost our business money just to get the ball rolling on an order, not like a retail store who sells a pre-packaged item, has it returned and can put it back on the shelf. Write down everything you would want to have happen in a transaction, then go back trough it and find a way that it fits your business and create your own customer acceptance section of your approval or order form, make it mandatory that they read and sign before you will move forward.

For digitizing nobody pays 50% advance, they even not ready to pay for every order and ask for monthly payments

I really like your ideas. They are worth noting. I think that I will use them in my business when I get totally up and running, thanks.

@----gnizitigid--- I don't understand what you mean exactly. We make sure in an embroidery job, the deposit of 50% contains the, Non-refundable digitizing fee, and covers the cost of blanks as well as the time it takes to pre-process the order. We get this from several long standing successful decorating companies around the country. Maybe check out a Greg Kitson class at an ISS or SGIA show. This is pretty standard. Putting your business in a quote unquote desperate position, such as offering terms, or "floating", order payments is, bad, bad bad, it will bite you, and this guy's situation is a prime example. Think of it this way, you are not a bank, if a customer can't pay the deposit, or have a credit card to pay in advance, or deposit, they more than likely are not going to pay your bill, or they take so long and so much time to hunt down, you could have done another 100 orders by the time they pay. It's what works for us, and we took this advice from many shops that made it through the tough times over the past 5 years. I'd rather be cleaning my shop, than doing free work!

God bless!

@---Edward, anytime bud, we learn from our experiences, and lots of mistakes =)

sorry Robert, I must have misunderstood the whole thread. I do now understand what you mean, I thought the original topic was based on a customer ordering decorated apparel, the shop got the digitizing started the order, and then it was canceled. That's why I stated what I stated. I know we would never expect our digitizer to be left holding the bag because, our, customer canceled on us. Confusion, either way, I think the topic has turned into a great informational pass. Shops like us need our digitizer, so we need them to know that no matter what they are paid. If we made a mistake and didn't cover our side of things with the end customer, we make sure the digitizer is paid before we even get the file and keep rockin! You digitizers are a blessing to decorators like us! We have a couple of us in the shop that know how to digitize, but, it's way more efficient to keep our digitizer busy so that we can focus on customer service, creativity, and production. Have a great night all!!

Hi..
I think this thread is good, credit goes to Robert of starting debate on this Subject and have different meaning for

1. Online Digitizing companies like us
2. Embroidery Companies with inhouse digitizing

For print shop as well as embroidery companies, 50% is great in advance and thats correct

But at same time for Digitizing companies 50% in advance does not apply as client pays when the file is delivered.

Usually, I know the client, and it's not a problem. But, it's happened, but not with that many. Luckily, they were local, and I knew them, and talked to them quite sternly, and they paid me. They were in business too, which I did business with them, and they understood, but didn't agree, but they paid me.

For me, as an embroiderer, I will pay my digitizer no matter what, it isn't their fault.

I've been lucky in this respect.

Just to clarrify, my statement on 50% down, applies to the decoration shop's order with their customer, not the Digitizer. Example, Joe's Pluming comes in, order 100 hats, 100 polos, all embroidered. We would collect 50% deposit from Joe, in that 50%, we make sure we calculate the full cost of the digitization, to make sure it's already paid for. When Joe places his deposit, he signs that the digitization fee, included in the 50% deposit he puts down, is non refundable. Shops should always, always, always, pay their digitizer and not expect then to wait for the shop's customer to pay. The digitizer did his/her job, the need to be paid. Happy Friday, all, have a safe and blessed Memorial day weekend!!

Have a great weekend Robert!! It took us a couple years to realize these practices are used by others for a reason. I would say we lost over $15,000.00 due to the "trust factor". Even with family and friends, business is business. If they love and respect you, especial the special care they will get from you, they should be willing to pay ya =)

Well, being new to this, I might have a different view than someone more experienced. I am not sure at what point you would have collected a deposit, but I think that I would keep it. You can't lose your shirt because you will not survive that way. I am not sure about how you would work the digitizing, but you should still be able to recoup something for your time and effort. Just my thoughts.:)

I agree