NONREFUNDABLE DEPOSITS?

[JIMRPT@AOL.COM]

David asked:
<<"In the retail piano business, how common is the 
 practice of  extracting non-refundable deposits from customers?">>

David:
 I don't know how common it is...but it is done frequently. However there are 
two elements of the "retail business", i.e.; Sales of instruments and Repairs.

 On the repair end, with a large ticket attached, I will not pick up the 
instrument without a substantial and "non-refundable" deposit...period. 

 Sales is a different matter though and each situation is different in my 
opinion. In the 'normal' sale where the customer comes into the shop/store, 
decides to purchase a piano, signs a contract, leaves a deposit for a later 
delivery and then the following day/week decides not to buy that piano....I 
would think the best thing to do would be to cheerfully refund that deposit.
In this situation there is no meanigful harm done to either party and having 
an unwilling forced buyer doesn't really do your business any good anyway.
So in this instance I agree with Richard G.

  There are circumstances where I will require a "non-refundable" deposit on 
a sale though. In an instance where a customer wants a piano but doesn't want 
delivery for several months there are substantial costs for holding that 
piano for that period of time, i.e., lost sales opportunity, storage space, 
investment return, etc. So in this particular situation I require a 
"non-refundable" deposit of whatever amount that will liberally cover my 
expenses for providing this convenience.
 
  Another situation where I require a "non-refundable" deposit is when there 
is a long distance delivery involved. While I don't want to 'force' any 
potential customer to keep something they don't like, or want, I also am not 
in the business of moving pianos to keep from getting bored! :-) Again in 
this instance the "non-refundable" deposit would be enough to cover my time 
and expenses.

 While there may be other circumstances where I would require a 
"non-refundable" deposit I generally don't think that they will produce a 
lasting feeling of goodwill between you and your customers. Refunding a 
deposit, made in good will and with good intentions on the customers part, 
should probably be done with just the same amount of good will and intentions 
on our part....seems to me to be just good "long term" business to do so.
My view.
 JIm Bryant (FL)