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Original poster

To ask whether I should refund this business £1000

50 replies

umwhyisthishappening · 17/11/2021 16:06

I own a very small PR business and we recently took on a new client for £1000 a month for three months. I was thrilled.

We did all of the work they had asked for within one week, a social strategy, a press release and distribution, comments on their slogans which they asked for, and our graphic designer created their branding.

To be fair, they weren’t happy with the designs. We rectified this within two days and they said it was a vast improvement. I explained we are really trying to get a feel for what you are looking for and at 5am this morning created even more images which they were initially happy with.

Today I had to move a meeting with them because our social manager had an emergency with her child. They were not happy about this (we have always made their meetings over the past two weeks so this was a first) and now they have requested termination and a full refund.

We have a contract which states they are locked in for three months but they have said they were not happy with the pace of the work.

I feel we have done a lot of work for them and don’t know where I stand with a full refund.

Any advice please?

OP posts:
RincewindsHat · 17/11/2021 16:10

Say no, hold your ground. It sounds like they have what they wanted and now do not want to continue paying you for the remainder of the contract because they don't know what else they'll want.

They're taking a chance. They signed a contract. Say no.

MissConductUS · 17/11/2021 16:11

Tell them to show you in the contract under what circumstances they are due a refund. Keep the money and stop giving them service after the first month is over unless they pay again for another month.

They are just trying it on with you. Lots of businesses will try to stiff their vendors.

Was the contract drawn up by a solicitor specifically for your business?

JingsMahBucket · 17/11/2021 16:13

@RincewindsHat is exactly correct. They're a bunch of chancers who are trying to take your intellectual property/work and run. Do not back down.

Youdoyoutoday · 17/11/2021 16:17

@RincewindsHat has called it right, stand your ground

Darkstar4855 · 17/11/2021 16:24

Well you have done the work so I wouldn’t be refunding them unless the terms of the contract said I had to!

Sounds like they are trying to pull a fast one tbh.

Arabelladrinkstea · 17/11/2021 16:28

Honestly for the agro it’s worth I’d refund £500 as you’ve done 2 weeks out of 4 weeks work and walk away with your head held high.
After all PR is all about who you know and your reputation.

Aderyn21 · 17/11/2021 16:29

Meetings have to get moved all the time. They aren’t due a refund on that basis. You’ve done as they asked and I’d hold them to the terms of the contract.

JingsMahBucket · 17/11/2021 16:31

@Arabelladrinkstea and then she'll get a reputation for being a doormat and someone who doesn't meet client expectations so badly they had to refund them money. They met the client expectations just fine.

@umwhyisthishappening if I were you I'd charge them a one month cancellation fee of £1000, keep the first month, then cut them loose. You'll lose the last £1,000 but you'll also lose the terrible and dishonest "relationship" they're trying to build with you. It's not going to get easier with them.

OneTC · 17/11/2021 16:33

What's the time scale and was there distance selling involved?

Disfordarkchocolate · 17/11/2021 16:34

Hell no, everything so far has been very normal. In fact probably faster than normal. Nothing you have done gives them reason to break the contract.

PlanDeRaccordement · 17/11/2021 16:37

I’m not sure they have actually accepted your work as you’ve said they were it happy, then they said vast improvement, then initially happy.
Are they happy with the work or not? Will they be using it?

If no, and the work is all being rejected and returned, you owe a full refund. Unless your contract stipulates a non refundable deposit or consultancy fee.

If yes, if the work you did will be used by them, what they owe you depends on how you wrote the contract.
—-If it was £3k for x, y and z PR products with a delivery date of 3 months later...and you have done x, y, and z but ahead of schedule, then they owe you the full £3k.
—-If the contract was written PR support at a rate of £1k/month, then you owe them £2.5k as you’ve only supported them for two weeks.

PlanDeRaccordement · 17/11/2021 16:39

I'd charge them a one month cancellation fee of £1000,
Can only do this if the contract specifies a cancellation/termination fee.

ShowMeHow · 17/11/2021 16:39

Running a small business like this one is absolutely miserable and many clients will simply walk all over you ime. That you are working at 5am (commitment motivation etc) and they will drop you like a brick hours later is truly shit and entirely my experience of trying to be a new supplier to local smallish owner manager type businesses.

Getting out was the only way to feel successful in the end … and to make a living.

They have probably got their neighbours daughters boyfriend to have a go and will
pay him £200 and that will be win win for them.

But happier in my salaried 9-5 in a national organisation

PlanDeRaccordement · 17/11/2021 16:44

The answer to your question OP hinges on two things, whether they have accepted delivery of your work or rejected it as substandard and secondly on how your contract is written in regards to payment terms and any non refundable fees, plus termination costs/fees.

ChateauMargaux · 17/11/2021 16:47

Stand your ground.. you have produced a social media strategy, a press release and branding that they are happy with in a week for £1,000 ... They signed your contract. You have delivered what they asked for. They don't get to negotiate the price later.

Do not refund... get lawyer / business advice so your contracts are watertight and you have defense lines ready.

ElftonWednesday · 17/11/2021 16:49

@OneTC

What's the time scale and was there distance selling involved?
Irrelevant. Business to business contract.
StrongSunglasses · 17/11/2021 16:50

No. Not unless you are contractually obliged (in which case, sort out your contract before signing up any other new clients!)

Lockheart · 17/11/2021 16:51

If you're running a business you really shouldn't be taking advice on this from AIBU. Ask a professional for help.

diamondpony80 · 17/11/2021 16:58

What do you mean "not happy with the pace of the work"? Do you mean you delivered it too quickly?

I would never deliver a "month's" work within a week (even though it was completed) as it tends to make customers think they were overcharged. Or that you did a rush job and didn't do it properly. They're expecting a month's work so I'd be delivering at the end of the month.

Lasair · 17/11/2021 17:02

No

SolasAnla · 17/11/2021 17:03

You developed a the requested brand strategy within 1 week.
Turn around time on bits they did not like was a 2 days. For £3000 that's cheap.

They got 3 employees plus other business expenses for £1k a month or £12k a year.
Were they ever going to pay £12k for a whole rebrand across a trading year?

Have they paid anything yet?

I would suggest that if you are delivering the bulk of the work at the start of the contact you look at providing costing's per deliverable within your standard contract.

But my vote is no refund as they will use your IP with maybe some changes.

SheldonesqueTheBstard · 17/11/2021 17:04

Sounds like they are chancers.

Stand your ground.. you have produced a social media strategy, a press release and branding that they are happy with in a week for £1,000 ... They signed your contract. You have delivered what they asked for. They don't get to negotiate the price later.

Do not refund... get lawyer / business advice so your contracts are watertight and you have defense lines ready.

And this.

Nocutenamesleft · 17/11/2021 17:08

I’m surprised that you run you’re own business

Yet you don’t know the answer to this?!? Surely you know the legality of your own contract?

If they’ve rejected all of the work you’ve done. I would refund them.

What does the contract stipulate?!?

Don’t rely on answers here. You need a proper solicitor look over this. Not AIBU on Mumsnet…

itsallgoingpearshaped · 17/11/2021 17:15

Get legal advice.

Puzzledandpissedoff · 17/11/2021 17:22

The answer to your question OP hinges on two things, whether they have accepted delivery of your work or rejected it as substandard and secondly on how your contract is written in regards to payment terms and any non refundable fees, plus termination costs/fees

Exactly this

It's entirely possible they're trying it on, but so far there's not enough information to say it's definitely so