to not refund customer?

[smallbiznav]

I run a small business. I’m worried I’ll be identifiable so I’m changing some of the points and product to disguise, so it may not make complete sense but that’s because I’m being careful!

My business is my only income, so I have to be tough which doesn’t come naturally. I run, let’s say, ballet classes. There’s 6 a year and as my reputation has grown, are in demand. As such, I’ve increased the size of the space I rent to accommodate. When I first put out the dates, I want to guarantee I’ll have a set amount of bookings to cover my cost and drive traffic. I offer the classes at a very reduced rate if the package is bought.

A woman bought them, 6 months ahead, and all was well. That meant the number of discounted packages sold out and the price went up.

Now, the woman has found out she got into some classes at an expensive and prestigious ballet school, so doesn’t need my little fun classes anymore. She asked for a refund. I pointed to the terms and conditions which say no refunds after the initial 14 day cooling off period that she agreed to.

She then decided, due to the time of when she tried to cancel, that she’d come to the first class. After that, she emailed to say how amazing it was but since she’s going to the prestigious classes, she doesn’t need mine. I reminded her of the refund policy and she said that it was fair, but could she sell her place on.

Whilst not transferable, I understood the dilemma and felt bad so agreed, provided I did not facilitate finding someone new at all. Instead, she can just tell me the name of the new person I should expect.

I run a small Facebook group which is where most my customers come from but some go to other competitors classes and that’s fine, it’s mainly to talk about ballet and share videos of ballet moves / recitals etc. I am the only lead of it and there are definitely many people in the group who haven’t yet booked my class but may potentially, closer to the time, on a class by class basis.

She has asked to post advertising her sale of my classes on there. I feel this may deprive me of a future customer. I am fine if she has a friend or someone in another group (plenty of dance groups out there) to sell to, but in a community I put many hours to and how I built my business, feels like I’d be taking money from myself.

This was longwinded, sorry. So, what would you do? Allow her to post in my group or not?

YANBU - don’t let her post in your group but she can find someone elsewhere
YABU - just let her post

If you have already received full payment and she finds someone who will take her place and pay her what she paid you then I think that's fair to be honest.

I would let her post it in the group. It does not devalue your business in the slightest and I am sure there will be someone who appreciates an opportunity to join your class (and will hopefully remain a loyal customer).
The only potential pitfall I see is that it would set a precedent and your non-transferrable policy will suffer as a result. But for what it is worth, I would not be enforcing this policy myself as I think people should be able to gift their unused sessions if they are unable to make them. As a former yoga teacher, I saw it as an opportunity to get new people through the door.

I wouldn't let her post because you might set a precedence whereby other people start doing this too. You could end up as the go between, which you don't want to be doing.

Absolutely don't let her post that in the group. Fine, give to a friend privately, but not post in your group. Definitely sets up a bad culture of people swapping and expecting discounts and expecting you to bend etc

If you were to offer the space and refund her should someone attend a class then continue , that would be a better way round.

No don't let her advertise on your page.

YOU can say an extra space has become available on your own page.

This is the obvious solution, get someoen to pay you the full price and refund her the discounted price she paid, everyone is happy

I agree with PP and say don’t let her post. It’s not fair on you. I would have stuck to my guns and said no refunds after date x. Let her be off to her fancy new school and renege on agreements she makes there. She should have accepted the loss and still be pleased about her move to a new school.

I would comment on her post - if you think it’s reasonable to disclose this - something on the lines of “it was so lovely to have your child attend one of our sessions, I know they had a fantastic time and they will be missed but we are very happy to hear their fantastic news and myself and I know the rest of the class wish them all the best.”

It depends when she first tried to cancel, if it was more than 3-4 weeks before the start of the class then I think your no refund policy is unreasonable.
No refund because you won't be able to fill up the space is reasonable. No refund because of the sold out discount package isn't in my opinion. Just re-sell her spot at the regular price then.

But it's your T&C's and she signed them so hey, do what you want. From the tone of your post, it sounds more like you are offended she chose to go to the "prestigious" school instead of your classes and it sounds a bit petty.

I wouldn't let her post of your own Facebook group no, it would indeed set a precedent.

You don't want to set a precedent whereby potential customers see your service as transferable.

I'd tell her that and say she's welcome - in this one instance and as a goodwill gesture - to find her own replacement but she cannot advertise it on your page.

I would say you are unable to accommodate this as have said no to transferring bookings to others in the past, and though you have made an exception to her on this occasion, you require discretion in regards to other customers who you have not afforded this luxury to.

Just say you have made an exception as a goodwill gesture, and it would be unfair to your other customers if it were publicly broadcast that you have made this exception.

If she can find someone else to take her place herself I think that's a reasonable compromise but no way would I let her post on your Facebook page . She is potentially depriving you of finances from a new customer.

Sorry my classes are nothing in the exercise world or similar, it was just an example.

She now can’t be a customer in the real life scenario - let’s say she’s now banned from ballet and can only do tap 😂

This is my concern,

she got the classes at 50% of the current rate. she can absolutely find someone else to take it but if she were to advertise that in my group, my concern is that there are definitely people who will be booking at the full price, they tend to book each class separately due to the date commitment, but now they won’t be booking at that full price and I will lose money. I suppose the maximum I would lose out on is about £200 but that’s a lot when it’s just my business :( there is also an extra admin cost that goes into all this as my real life situation requires things to be personalised on an online system and it will take time and a fee to change

She tried to cancel a few days before the first class, which is why I couldn’t help at the time and she attended.

I didn’t mean it to come across as offended because this is an entirely made up example to not tell my identity, there is no other school that’s more prestigious. I had to use that example to fit because the reason she is cancelling is 100% not because of money (in my example the prestigious school is 10 x my class rate in the real life equivalent issue)

The class isn’t full. So I would simply be deprived of income taken months in advance.

I feel very torn because I understand thinking it’s fair to cancel in advance (the rest of the classes are spaced out so she isn’t last minute for those, but she is last minute for the first in her booking) but it means everyone could buy the packages in advance to take advantage of a discount if they maybe decide on taking the class, then changing their minds last minute and I need to accommodate and lose money - she also booked and spent an hour on the phone to me asking for advice etc (for the real life situation) which I gave her - other companies charge hundreds an hour for that (my fault).

No don't let her post on your page.

She has to find a buyer for the course she no longer wants and conduct the transfer without involving you at all, apart from informing you of the new name.

Don't get involved in this any further. It's already generous of you to allow her to sell on .

Oh I thought class was full. On that case just insist on teems as agreed, no refund

I have no advice, I'm sorry, but I'm completely intrigued as to what your classes involve!

Charge her full price for the class that she did. On your Facebook page offer the other classes at the discounted rate and refund the money to her if someone takes them. The additional cost for the first class is your admin fee for changing the booking.

Can you ask on the FB group if anyone is interested in buying a "part/remainder package"? Don't give the amount or anything or the level of discount but then if someone is interested you can broker a deal whereby you refund her the 50pc and you sell it on with a small markup to compensate for the time and effort you've spent.
I don't know the nature of these classes but if the new person was v interested maybe they'd stay on for longer so you're acquiring a new customer essentially

But this will piss off all the clients who booked at full price after the special deal finished. Pissing off current customers to appease a now non customer who signed a contract is a really bad business model.

It would only deprive you of income if there is a buyer on your group who was prepared to pay full price, yet somehow has chosen not to, even though the term has already started, AND this person grabs the discounted place ahead of any other competitors who were keen but not prepared to pay full price.

If there is little or no marginal cost to having the extra person in the class (which is the case with ballet, but perhaps not eg art lessons) then if I understand the offer right, I think you're probably more likely to snag a new customer by offering the discounted ticket than you are to lose potential income. However you would also have to provide the class to the new person rather than just keeping the money and not providing the service, so you also "lose out" that way. How significant that "cost" is depends on your business model.

Marginal costs aside, you have made a business decision not to offer any more discounted tickets and I think it's fine for you to say no to her on that basis.

Exactly this. It sounds like you’ve allowed her to transfer the classes to someone else as a one off. If you don’t want this happening all the time then I’m with you and wouldn’t let her post.