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Contract - Cancel Fees?

Discussion in 'Business Fundamentals' started by Robbie Rooster, Jul 28, 2005.

  1. Robbie Rooster

    Robbie Rooster Member
    Messages: 33

    Is anyone out there using a cancel fee or something like it for customers who are on a contact but no longer require your services. (moving, no money, too expensive, ect... I've been tossing around the idea and need some input. I figure, they signed up on contract and filled a spot on my route. If they cancel half way through the year, now I need to try and fill the spot. Everything these days seems to have a penilty for canceling before the end of the contract. This would apply for the customers who just don't want the service any longer, as well as the ones who don't pay and I suspend service until they pay up. What do you guys think or what are you doing to keep customers from canceling service before the end of the season.
  2. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    1.5 months services, so if thier paying $200 a month I charge them $300 to get out of it.
  3. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Something to think about - What are you going to do if they just refuse to pay the cancellation fee? If you say "Take them to Small Claims court" make sure it's worth the time and hassle before you start.
  4. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    I guess I've never had a problem with this, some people are'nt happy to have to pay this, but most understand my reasoning. Yes can see where your coming from, if you do go so far that you feel the need to take them to court make sure its indeed worth it.