Being in business in the Midwest right now kind of sucks. We're knee in water almost everywhere. Of course, in the whole scheme of things, losing a few rentals isn't much compared to what others are losing, but we still have bills to pay and employees to support so all this rain can really hurt.
What can you do to protect yourself? A lot depends on how you handle your written contract. A few years ago we returned deposits if an event rained out. We were building our business and wanted the good will, but after losing a fortune due to rain one year we changed that policy. Now... we require 50% down BUT if the event cancels due to weather they have a full year to reschedule and use their deposit.
The basic fact is that if you don't take deposits or return them due to weather issues you'll find it hard to stay in business, and most businesses understand this.
Now, even though our contract states no refunds, in some cases we'll refund small deposits for backyard parties. $75.00 here and there isn't much when you realize the good will you can make, but this is a personal preference.
Just remember, people know you have a business to operate and deposits are taken for a reason. You are under no obligation to return them as long as you've made your policies clear to the customer up front.
If a customers really want to fight this, offer them a rain waiver. For 3-5% of the total cost of the event, they can purchase the ability to get a full refund in case of weather. This can be a win win for everyone. The customer will be more comfortable and in many cases you can make an extra 3-5% for all your events.
Tomorrow we'll talk about the effect of the weather on your moonbounces & interactive inflatable games in the party rental business.
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