Originally Posted by TigerToothBikes.com
After some legal research (quick googling) it appears non-refundable deposits are legal in the UK to cover sellers expenses in the event of customer cancellation. Whilst some retailers charge 50% i feel 15% to be fair. Thank you to Dan for that suggestion (you've probably ensured our survival!) Take heed all vendors. Be SURE your terms clearly state either a restocking fee, which is legal for you guys in the US, or a form of non-refundable deposit. Also be sure to state delivery costs are also non refundable. If you chaps wouldn't mind checking out our "Conditions of Use" page and consider if it's legal&fair i'd appreciate it.
I'm not much of a business man, but I learned a lesson from my father, who was a worse business man.
Some people want/demand/feel entitled to special treatment. The rules don't apply to them. The ones who make and break deals -- surely it goes especially for them.
Dad noticed, or more accurately, I noticed you could appease these entitled demanders if you gave them the discount (at purchase) they were seeking. They, of course, had no idea how much the competing shop would be quoting for the job. Just seemed satisfied to get a discount.
You might consider raising your purchase price, but it's really the restocking fee I want to focus on.
What ever you make it, they will complain. So, I say make your policy officially 25 or 30%. Then, on an individual basis, reduce it. It seems perhaps a manipulative suggestion, but I say it is a way to cope with a manipulative situation that you did not initiate.
I hope that helps.
I hate to see you guys go out of business. This is an enterprise driven more by passion than profit, it seems to me. Margins just don't seem to be that big. So it's a real shame to see members of this community getting burned outta the business.