Customer backs out of purchase, should I return the deposit?

[CrackPot]

Had a handgun advertised for sale. Customer contacts me via email about the gun. They are in the middle of selling another of their guns, but would like to purchase mine. Will I hold it?

I say I will hold it for a $100 deposit (its a $950 gun).

The come to the shop and leave a $100 deposit and I give them a receipt for the $100 as a deposit against the purchase.

Time passes. I communicate with them multiple times during email. They are not moving their sale forward successfully. Finally 8 weeks after taking the deposit, they inform me they will be unable to purchase the gun and when can they come by to get their deposit back?

So, would you give them their deposit back?

I have conflicting views on this. Legally and ethically I conclude one thing. From the perspective of "I run a business and have a reputation", I conclude something else. Curious how NES responds.

And yes, the customer is a Millennial.

 

[PilotRPI]

No, that’s the point of the deposit. Maybe after a day if they let u know they were having an issue and you wanted to be a nice guy, sure. But 8 weeks of affecting your business, no. Another valid reason to refund would be if it was not as advertised.

Or tell him you’ll guve him a $50 credit at your shop for a purchase within one year.

 

[enbloc]

If I had lost potential sales of the piece because it was "on hold" with a deposit, and I had informed him that the deposit was non-refundable. I would keep it.
If none of the above occurred... I'd give it back and explain how the Real World works. Clearly his Daddy didn't.

I think legally you need visible signage or a written receipt stating "Non-Refundable Deposit".

~Matt

 

[92G]

personally i would give the idiot back his deposit and not allow them to do any more deposits in the future. there are so many of these retard types out there it's not my job to "teach" them.

 

[LoginName]

No, that’s the point of the deposit. Maybe after a day if they let u know they were having an issue and you wanted to be a nice guy, sure. But 8 weeks of affecting your business, no. Another valid reason to refund would be if it was not as advertised.

Or tell him you’ll guve him a $50 credit at your shop for a purchase within one year.

This.

If it was a few days, maybe a couple of weeks, I'd give them the full deposit back.
2 months is way out of line.

 

[Golddiggie]

Did you have anyone else express interest in the handgun during those 8 weeks?? If so, then I wouldn't return the deposit. If you've had zero activity on the handgun in those two months, then maybe.

Moving forward, I would make sure that anyone that says they want to put a deposit on something that they are told it's not refundable. Or not refundable after XX days. Maybe adjust this ruling for repeat/good customers, but the blanket policy would be as above.

 

[parallax222]

If it was spoken about as a non-refundable deposit, then no don't give it back. If it wasn't, and I was in your shoes, I would refund it once, then change your policy and make it crystal clear and well communicated, then not refund going forward. Thats just me.

 

[Glockster30]

It's a tough call. Sometimes, people have the best intentions, but sometimes things happens that interfere with their decision. Not knowing anything about your business, if you didn't lose a sale of this gun to another person because there was a deposit on it, I'd be inclined to return the deposit. I guess that it comes down to, is it worth losing a possible future customer over $100?

 

[kevin9]

What did you tell them when you took the deposit? Do that.
If that was unclear, do you have any standard money-back type guarantee? If so, I'd return the deposit.
Personally I'd lean towards returning all, or at least part of, the deposit, but I can understand not.

Update: Have changed vote to a definitely return the deposit. It's not worth the possible legal and other hassles. I'd establish a written policy on deposits of:
"Deposits will be accepted at sole discretion of the owner, and for a maximum of 30 days. A full refund will be granted if buyer cancels the purchase within 15 days. A 50% refund will be granted if buyer cancels between 15 and 30 days, inclusive. After 30 days the sale will be void and no deposit returned."

 

[TJL]

Offer the deposit back in "credit" towards purchase. Within the next 90 days. This time add a TIME LIMIT

 

[enbloc]

That Hundred Bucks will turn into a very disproportionate amount of negative complaining from the buyer in this "Yelp" day and age.
Companies pay way more than a hundo to straighten out their "Reviews"...
Is it worth it?

Also, ask yourself how you would want to be treated if you were a young guy looking at maybe his "first gun" to buy...

 

[Choctaw]

Some good points already presented. I like the store credit idea, win/win.

 

[45collector]

personally i would give the idiot back his deposit and not allow them to do any more deposits in the future. there are so many of these retard types out there it's not my job to "teach" them.

Agreed.

 

[drgrant]

I'd be keeping the $100. That's the whole point of the deposit- its a promise that they'll show up to buy the thing. Particularly after 8 weeks.... that's a lot of burned opportunity
cost. You could have listed it on GB in that time frame and long had the money for it.

If he doesn't understand that, there's also the nuclear option which is giving him his money back and telling him never to show up ever again.

Of course there's a caveat. If this was some white elephant lumbering thing that you had no hits on and no intention of marketing anyways, then there's not really a
lost opportunity there and you can give him the $100 back with a polite reminder that you are under no obligation to do so.

-Mike

 

[drgrant]

It's a tough call. Sometimes, people have the best intentions, but sometimes things happens that interfere with their decision. Not knowing anything about your business, if you didn't lose a sale of this gun to another person because there was a deposit on it, I'd be inclined to return the deposit. I guess that it comes down to, is it worth losing a possible future customer over $100?

Yes, it is. Of course the OP will have to make that value judgement on his own.

The customer is not always right. And some of them are more of a pain in the ass then they are worth.

-Mike

 

[babygorilla]

C DIS ABOVE^^^^^

 

[daekken]

This is kind of fascinating, and I can see both sides as well. For me, it would probably come down to whether or not you had any interested buyers you had to decline due to waiting for this customer.

If one or more interested buyers were turned away, I'd strongly consider keeping some or all of it--or, at the very least, this customer would no longer be given the ability to do any kind of deposit in the future, since they have used up their goodwill. Their failure to complete the purchase cost you time and money, basically.

But yeah, I'd make sure to explain that if you don't keep all of it, you're doing it as a service/kindness, because strictly speaking he gave you the money to hold it and decline any/all other offers, which you did. You held your end of the bargain, he did not, so you don't owe him anything. You effectively made a contract, and he violated the contract.

Eight weeks is a long time to wait, in my opinion.

 

[enbloc]

I've seen soooo many Gunshops fall by the wayside because of horrendous Customer Service.

Rise Above!

 

[Cur]

Yeah waiting weeks on someone to get back to you about a possible sale without hearing anything back from them is kind of bullshit in this day and age. Takes only a bare minute to get back to someone. It would absolutely taint my decision in future dealings with them.

 

[enbloc]

Maybe in the future with regards to deposits you tell the buyer that you are going to remove the gun from the display case and put it in locked storage until an agreed upon date.
That way you would never know that you had missed sales or not and can with a clean conscience proceed with deposit retention.

 

[cockpitbob]

Business. It's all about business.

If keeping the $100 will hurt your business in the long run, hold your nose and give it back. If you can afford some negative publicity, want the $100 and want to teach him what his daddy didn't, then keep it. Business people that let emotions cloud money decisions don't do as well as the ones that don't.

ETA: My emotions say to keep it. A deposit is a "hold". You promise to not sell it sooner, and in return get $100 if he flakes. He risks his $100 for the latitude of changing his mind.

 

[greencobra]

mr. crackpot, you need to revise your policies. take a 20% percent of the total cost to hold it for whatever, say 7 days. after 7 days it's non refundable. it's got to be posted in the shop and write it on the receipt. there are exceptions. me, I wouldn't hold a good, regular customer to the same policies as some occasional tire kicker.

That Hundred Bucks will turn into a very disproportionate amount of negative complaining from the buyer in this "Yelp" day and age.
Companies pay way more than a hundo to straighten out their "Reviews"...
Is it worth it?

Also, ask yourself how you would want to be treated if you were a young guy looking at maybe his "first gun" to buy...

I don't pay attention to social media reviews, they're just a sounding board for butt hurt people.

if the shop is decent and you treat people fairly, you'll have customers. word of mouth is way better than shit like yelp when some guy starts talking up the shop at his club.

 

[drgrant]

Offer the deposit back in "credit" towards purchase. Within the next 90 days. This time add a TIME LIMIT

This is a good idea too. "I can't refund your deposit but I can give you store credit for anything in the shop." That way you're at least not losing the little
chunk of profit you'd make off the $100.

-Mike

 

[W.E.C]

Idk, but I think it’s kind of desperate to take a deposit from someone who doesn’t have the cake to make the deal.

I’d give the money back and tell him next time come with the full amount.

 

[FPrice]

Absent any formal policy on deposits I voted for a full or partial refund. A lot depends upon your feeling of whether or not the customer was being honest with you.

Added: Based upon some items posted, you should probably develop a written policy for future use. Some good ideas from some folks.

 

[drgrant]

mr. crackpot, you need to revise your policies. take a 20% percent of the total cost to hold it for whatever, say 7 days. after 7 days it's non refundable. it's got to be posted in the shop and write it on the receipt. there are exceptions. me, I wouldn't hold a good, regular customer to the same policies as some occasional tire kicker..

This too, obviously if some guy who drops thousands in your shop has a family emergency and needs to flake out on a deposit or something, that's a wholly different ballgame than dealing with someone who hasn't established that kind of rapport....

-Mike

 

[mac1911]

I say give him his money back and be done with it. Tell him don’t bother buying anything from you ever.
It’s a cheap way to get him out of your life. I have lent people money knowing it’s the last time I will ever have to deal with them again.
Refund it with a FU , 8 weeks is BS

 

[meh]

Matters what the deal was when the deposit was accepted, but generally speaking, as a buyer, I'd expect to lose my deposit. The whole point of a deposit is to prevent sale to another customer. That means if I don't complete the sale, my actions have damaged the vendor, and so I must owe him something. Classy move to make it a store credit instead of pocketing it. If the vendor feels that the item wouldn't have sold to anyone else, anyway, they can refund it and go on with their life, no harm no foul. Similarly, even if the item could have sold, but the prospective buyer is suffering from some unexpected life event, then refunding is something a good person would do, even if they don't have to.

 

[cockpitbob]

Offer the deposit back in "credit" towards purchase. Within the next 90 days. This time add a TIME LIMIT

I don't think I'd encourage a flake like that to come back. Past behavior predicts future behavior.

 

[enbloc]

I had a similar thing happen when I owned a Motorcycle Repair Shop and I got a deposit on a part and related work. A year later the guy shows back up and wants his deposit back because he sold the bike and didn't need it any more.
NO WAY, Right?
2 months later I'm called into Small Claims Court in Woburn by the guy and the Judge asks me:
"Did you have Adequate and Visible Signage in regards to your Deposit Policy?"
"Or a written receipt for the deposit stating that policy?"
NO?!
Do you understand that under Massachusetts Law you are required to?"
NO?!
"How would you like to proceed; write a check for the return of the deposit and settle this before it is entered into record, or lose the case, have to repay the deposit AND leave a bad impression on all the other people gathered in Court today?" (the court was packed with 80 or so other people and their cases)

... I wrote the check.