What to do?

bluebabe87

Hi all,
I hope someone can help me, more to actually make a decision that will work out for the best. My mother owns a small business and makes items to order that must meet a certain deadline (don't wish to go to deep into it just in case) One client has a deadline in two weeks and items have been made for her, however all of a sudden she has been saying that the quality of the workmanship is poor (it isn't, we have had 2 independent people look at the items and confirm they are of good quality.) and she now wants a refund, however only a partial refund. The items have been made especially for her and are not saleable to anybody alse. Now thr problem, a) the quality of the items meet trading standards , we honestly believe she has just changed her mind or found somethking else. And b) the most important to me, my mother is not majorly ill but has diabetes which is now taking the strain on her physically, mentally and emotionally. I believe in the principle is that we have met our side of the contract within the deadline and to the correct standards, so I am telling my mother not to refund, However this particular client has been rather rude and demanding and it is majorly stressing my mother, which plays up her diabetes and makes her ill. Now do i stick with the principle or do i tell my mother to do a partial refund as to stop my mother stressing and making herself ill with worry? It is really upsetting to see her like this, I am helping when i can but also have a full time job so cant be there all the time. She has had so many pleased and happy clients.

P.S. We currently are debating what to do with the business for the benefit of my mother.

Thank you all in advance for any advice or opinions you may have.
K x _pale_

TM1976

Has she been paid already?

If so and if you are satisfied that the quality is adequate you shouldn't offer a refund unless you are looking to get further business from or through this customer.

If you haven't been paid it's more difficult as you will have to take action to get the money.

concerned43

I wouldn't offer a refund and would ask that all correspondance come through you so that your mother is kept out of it.

Horace

What are your mother's trading terms? Does she have a cancellation policy etc? These will affect whether or not she chooses to give a refund or even a partial refund.

I am assuming that because of your mother's ill health that you are considering folding the business? If she is a sole trader then she just needs to pay the debts (if there are any) and notify the HMRC.

paulwf

I agree with Horace, presumably you got them to sign terms and conditions for this before starting the work?

What kind of discount is the customer after and what is your profit margin? This isn't something I'd normally advise but as it is causing illness if you can agree a discount that still leaves you some profit it might be best taking the hit and moving on. Principles are good in business but staying healthy is more important. Impossible to really give advice without knowing specifics though.

bluebabe87

Hi,
I know its difficult without specifics but let's just say she is a qualified seamstress and the items have created for a special day. There are no terms and conditions as an actual contract but there are some terms printed on the invoice when monies are exchanged. I would love for the correspondence to come through but she is a sole trader so would have to be via her. also slightly more difficult on the fact that it is a service, rather than a sold good. The business wont be folding, we have a family friend who is iinterested in taking it over. i cant, can barely sew on a button lol!! I think we have come to a decision but again many thanks for all your advice and help
K x

paulwf

What was the percentage discount the customer was asking for?

Horace

I am in the wedding business and I have a cancellation policy (I provide a service as opposed to actual goods that you can touch or feel) - its good business sense to have one whatever kind of business you are in because you need to recoup costs if someone decides to cancel.

I think in this instance to save any more heartache to give a partial refund and change her terms & conditions so that they include a cancellation policy.

Owain_Moneysaver

Offer a full refund. But only when you receive the goods back, in an unused/unworn condition. Otherwise no refund.

martindow

Owain_Moneysaver wrote: »

Offer a full refund. But only when you receive the goods back, in an unused/unworn condition. Otherwise no refund.

The problem is that these are bespoke items and not something you can put back into stock to resell. It sounds as if these are likely to be of little or no value to anyone other thsan the person who placed the order.

I agree with others. Protect your mother if you can by agreeing to a discount, getting as large a proportion of the money as possible and moving on.

Good luck and I hope you can resolve this in a reasonably satisfactory way.

Loopgames

bluebabe87 wrote: »

Hi,
I would love for the correspondence to come through but she is a sole trader so would have to be via her.

Please don't assume this. A sole trader can also have a secretary/pa or administrator.

You can be appointed to take over any correspondence. Being a sole trader is a technicality between her and HMRC not her and the customer.

Your concern is for your mother not to be grieved so you must be the cushion between the two. The customer must be handled carefully and you may decide a partial refund is due but you may not. At least your mother will not be involved in whatever decision that is made in the end.