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

[BigTimber]

One would think we weren’t talking about what amounts to pocket change in the grand scheme of things.

 

[namedpipes]

Clarify your written policy (and state it on the deposit receipts), refund the millennial's money and inform him he's now PNG at your shop. You can't ever trust him again. (Clarify the policy for your future customers, I mean. Then dump that one)

You should do the same with your refund policy on products, too, not just deposits.

Oh, and you might as well spill your action plan. The thread will never die down. This is NES. We have threads a decade old here.

 

[nstassel]

As I said in my post, if OP wants guaranteed no hassle, return the $100. That said, no lawyer is going to pursue a $300 case. And the potential buyer who reneged is not likely to go to small claims for $100 or $300.

What you're not understanding is that a lawyer can win 300 for a client and earn 10,000 or more in legal fees which are recoverable in a 93a action. That's the entire reason for the consumer protection statute and civil rights laws which include attorneys fees- to encourage lawyers to pursue cases where they ordinarily wouldn't because damages are small.

 

[Thinking]

Keeping in good stead with him may mean that he will want to do more 'business' with you, how do you feel about that?

Keeping in good stead with him may mean that he will send people he hangs out with and likes to do business with you, how do you feel about that?

My standard reply when it comes to legal issues:
If he wanted the $100 plus $20 for interest or he was taking you to court - I'd pay it. You will lose in court, even if the judge says you win - you still lose; the process is the punishment.​

20% interest?

 

[Mike Stanton]

Eh, it's $100. That you really didn't lose.

Refund it - AND that customer loses the lay-a-way privilege for life.

 

[LittleCalm]

What you're not understanding is that a lawyer can win 300 for a client and earn 10,000 or more in legal fees which are recoverable in a 93a action. That's the entire reason for the consumer protection statute and civil rights laws which include attorneys fees- to encourage lawyers to pursue cases where they ordinarily wouldn't because damages are small.

I understand that. This isn’t a sexy 93A case. Guy won’t go to a sleaze lawyer for $100-$300. Not happening.

 

[Len-2A Training]

Every Email response I send out to a request to register for a class, my website, etc. always specifies a non-refundable deposit.

In spite of that someone (who also happens to be an instructor) signed up 4 times for one of my classes, sent in a deposit twice and cancelled each time. One cancellation was the day before the class. He vociferously demanded his deposit back and threatened to bad mouth me everywhere and with everyone he met. IIRC, I finally did refund one deposit and advised him that he is banned from ever taking a class from me.

It's not worth the aggravation. Refund the deposit and advise the person that he is never to step foot in your shop again.

 

[GM-GUY]

20% interest?

Court is not worth it over anything less than $1000; some might have a higher point / but under $1000 I’ll just write a check.

 

[AHM]

I was that guy a few years ago. Was walking through a store and saw a Colt 1911 that caught my eye. Originally had no intention of buying it but as I walked around the store I went over to the c

The way this anecdote ends,
it seems like it belongs in the "N/D Of The Week" thread.

 

[Obie1]

I have a house for sale--we received an offer and negotiated a final price. We negotiated a lot of things with the buyer, including leaving behind lots of tools and even a boat. We then spent 8k on upgrading the water system when tests showed arsenic and generally bent over backwards to help him with lots of things over a months' long period (which included taking the house off the market). Ten minutes before the closing, he called our lawyer and backed out. I tried to work things out with him to no avail. I laughed out loud when his lawyer called to request we return his 11k deposit. The lawyer even sheepishly said, "Well, I had to try. I don't blame you."

 

[namedpipes]

The way this anecdote ends,
it seems like it belongs in the "N/D Of The Week" thread.

It does seem as though there may be more to the story than meets the eye...

I wanted to post a youtube clip of Paul Harvey saying "And that's the REST of the story." but I got distracted by clips of monkeys playing with kittens.

 

[AHM]

It does seem as though there may be more to the story than meets the eye...

I mean, it's not like every Store Pop story doesn't read like that.

I wanted to post a youtube clip of Paul Harvey saying "And that's the REST of the story." but I got distracted by clips of monkeys playing with kittens.

That's better than the converse.

 

[The Edge Lab]

The way this anecdote ends,
it seems like it belongs in the "N/D Of The Week" thread.

Yeah what the heck did I do there... ha

 

[Spicolii]

Refund the money. Schedule a time for him to come. Make sure you “accidentally forgot” about the meeting and went to lunch. Unfortunately you are the only one with the authority to refund the money. He can wait for you to come back or he leaves and doesn’t put any more energy into it and you keep the dough. Make sure if he waits to refund in a check to have s record of it and make him work just a little bit harder. Two months is unacceptable and pot form. Kid needs to learn. This is coming from a millennial.

 

[Glockster30]

As long as you have your policies posted you do not have to tell every customer specifically. I have it posted, written on every quote, invoice and confirmation, as well as on our website. All of this was done with the advice of our attorney.
We also list our return policy as well as restocking fee. Then it truly is up to me if I choose to take something back, wave the restocking fee, issue a refund etc.
Unless it is really something custom, I usually just take it back and issue the refund. If a customer makes a habit out of it, I warn them once, and then spank them the next time. This usually results in an angry customer, but some customers are frankly not worth having any way.
My unofficial policy is that mistakes can happen. We pay for our mistakes and try to make it right as soon as possible. When our customer makes a mistake, we do everything we can to help them.
My business is very different in that we custom fabricate a lot of stuff.

Yes, I know that you don't need to tell each customer if the policy is posted. In your business, it's very important to have a posted and written policy because if anyone backed out after a deposit, it would make it difficult, if not impossible, for you to sell custom fabricated parts to another customer.

 

[richc]

 

[mikeyp]

I always thought deposit=non-refundable. Unless it is an actual layaway(which I know some gun shops will do as long as you make some payments)

 

[AHM]

In your business, it's very important to have a posted and written policy because if anyone backed out after a deposit, it would make it difficult, if not impossible, for you to sell custom fabricated parts to another customer.

Here's a fun random tidbit in Mass.
(our implementation of the Uniform Commercial Code):

Contracts for the sale of at least $500 worth of goods
must generally be in writing to be enforceable.

But one of the exceptions is that
a buyer can be held to an oral contract
for over $500 of specially manufactured goods
if the seller has either made a substantial start to manufacture them,
or committed to buy them from a third party,
before the buyer tries to give notice they're backing out.

MGL Ch 106 §2-201 Formal Requirements: Statute of Frauds

That's not directly on-point,
and doesn't necessarily overrule
any consumer protection laws about layaway deposits.

But it hints that courts may take a suitably dim view of someone
who tries to back out of (say) a custom engraving job
once the work has started.


No manufacturer would be wise to build a business model of
"get a token deposit and squeeze the balance out of losers in court"
around this note.

But no customer should troll manufacturers with custom build orders,
under the belief that there's an actual law that "the customer is always right".

 

[Nick Leduc]

Last year I went and looked at a lathe. I wanted it. Seller and I agreed on 2k purchased price. I gave him a $100 to hold it for me. I would be back the next day with a few guys and a truck and trailer to pick it up.
That evening at work, I was telling a coworker about my new purchase. My coworker was like well if I knew you were in the market, I would have given you my "small lathe". Thinking I could use a small lathe as well as the large one I was going to get I took him up on his offer. Turns out the free one was a lot larger than expected and suited me fine.

I felt like the biggest dick calling the seller and telling him I was no longer in need of his lathe. Easiest $100 that guy probably ever made. I couldn't imagine calling and asking for the $100 back.

 

[Peicemaker]

If you dont have a defined policy on deposits, give it back and then institute a layaway policy. 50% down to be paid in full within 30 days. If not paid in full by the end of 30 days, customer will be contacted and remaining balance is to be paid immediately. If balance is not paid off, a refund will be issued with a restocking fee deducted.

 

[millbilly]

I'd just give it back. It's only $100. Let him know you are doing him a favor and you might have missed a sale on it. When. I was a young single dad I had a deposit paid on a preschool at a church for $500. Long story short I changed preschools with what I thought was plenty of time to fill the spot. They refused a refund. I left it at that but let a bunch of friends know for sure.

 

[Mike Stanton]

Every Email response I send out to a request to register for a class, my website, etc. always specifies a non-refundable deposit.

In spite of that someone (who also happens to be an instructor) signed up 4 times for one of my classes, sent in a deposit twice and cancelled each time. One cancellation was the day before the class. He vociferously demanded his deposit back and threatened to bad mouth me everywhere and with everyone he met. IIRC, I finally did refund one deposit and advised him that he is banned from ever taking a class from me.

It's not worth the aggravation. Refund the deposit and advise the person that he is never to step foot in your shop again.

You gave your guy FOUR chances. That was very generous.

If the $100 would-be gun buyer has a decent attitude otherwise, I certainly think he deserves a chance to buy a gun outright the second time around.

Crap happens - mebe he had his car breakdown or got laid off, I dunno.

But banning him from the shop is premature, I think.

 

[jhblaze1]

Are the terms actually defective?? We have not heard from the OP what the emails actually contained. The terms of the deposit may or may not have been specified.

at some point we need to make assumptions. if he put in writing that the deposit was non refundable, then that's an important detail to leave out of the OP which is why I assumed he didn't.....so yes, if he did in fact put it in writing that the deposit was non refundable then the 'contract' wouldn't be defective and he should absolutely tell the buyer to take a hike.

 

[Matt-CZ]

Any deposit or layaway scheme is going to attract the financially irresponsible and you'll have to deal with this crap. A $950 gun is a luxury purchase, there's not practical urgency that makes this kind of scheme necessary. Most people would just wait until they have cash in hand before trying to buy it.

 

[one-eyed Jack]

Life is too short for this crap. Sell cash only for the full amount upon pick up. Jack.

 

[Rob Boudrie]

I have a house for sale--we received an offer and negotiated a final price. We negotiated a lot of things with the buyer, including leaving behind lots of tools and even a boat. We then spent 8k on upgrading the water system when tests showed arsenic and generally bent over backwards to help him with lots of things over a months' long period (which included taking the house off the market). Ten minutes before the closing, he called our lawyer and backed out. I tried to work things out with him to no avail. I laughed out loud when his lawyer called to request we return his 11k deposit. The lawyer even sheepishly said, "Well, I had to try. I don't blame you."

I assume you have possession of the deposit.

Usually, the agent holds the deposit and will not release it without mutual agreement between both parties or a court order.

 

[Obie1]

I assume you have possession of the deposit.

Usually, the agent holds the deposit and will not release it without mutual agreement between both parties or a court order.

It was held in escrow, as is usual. When it was clear we would not refund it without (a potentially expensive fight), the prospective buyer signed the release.

 

[AHM]

I assume you have possession of the deposit.

Usually, the agent holds the deposit and will not release it without mutual agreement between both parties or a court order.

A properly-worded contingency clause in a Purchase and Sale agreement is a beautiful thing to behold.

 

[Mark from MA]

If your deposit protocol is not clearly posted, and was agreed to, signed off on, etc. I would return the deposit. It's not worth the legal hassle, and honestly as a business person it's your bad not to have some written statement on taking and giving back deposits. Maybe you have one, but it wasn't clear in the OP.

I would either blacklist this person from future sales or give him the realization that keeping unsold inventory cost money, and is not free, and that your doing him a favor by giving the money back.
Which if he's as stupid as he is to ask for the money back will go in one ear and out the other.

I'll give it to you the Bronx Tale way........you had to give back 100 dollars, it didn't really cost you anything other than returning the money and maybe a missed sale, ...but now for life, you know that he's a bad customer and not to deal with him ever again. Just having that information alone is worth paying 100 dollars for.

Another thing, I've sold quite a few things in my life, if someone tells you they need to sell their item before they can buy yours. RUN....don't walk away from them. They are the immature, impulsive type that will turn around and screw you as soon as they walk out the door and see a better deal.

Lets face it, they have no money and can't even wait to sell what they have and get the cash in hand and want to buy your item. How immature is that? And there are so many variables with their sale, that it usually doesn't pan out with these jokers ever.

Deal with people that have cash and can afford to buy what you are selling and want to pay for it that day. Give those people a discount and you will have good customers.

 

[Hetzer]

This reminds me of that scene in A Bronx Tale, about the kid that's owed money.

"Look at it this way, he's out of your life for $20, you never have to see him again"


View: https://m.youtube.com/watch?v=78-4RobJQ0Y