Money Moral Dilemma: Should I refund my friend for the personal training sessions she cancelled?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

I've qualified as a personal trainer and set up my own business. A close friend asked for eight sessions at mates' rates, so I booked her in at half-price, and she paid upfront. With three sessions to go, she said it was too much hassle for her to get to them, as she has to arrange childcare, and asked for her money back for the remainder of the sessions. I've already put what she paid back into my business, and I feel it's pretty offhand after I gave her a discount.

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Mark_d

You could try to explain that the money is invested in the business, as a commitment was made, so it's not straightforward to give a refund.  If she's making a fuss about getting her half-price payments back then you need to decide what's best for your friendship.  You've already made your contribution to the friendship by giving mates rates.  It sounds like this 'friend' is taking the p***

Jellynailer

How about if you say you can agree a refund but say this would need to be deducted from the cost of 5 full rates sessions because the half price was a concession for 8 sessions and you need to cover your overheads.  Say that you hope, as your friend, she understands but that as her friend you are prepared to waive the balance due to you for the cancellation. 

Savvy_Sue

Jellynailer said:

How about if you say you can agree a refund but say this would need to be deducted from the cost of 5 full rates sessions because the half price was a concession for 8 sessions and you need to cover your overheads.  Say that you hope, as your friend, she understands but that as her friend you are prepared to waive the balance due to you for the cancellation. 

That sounds very reasonable, even generous, but ... 

What do your terms and conditions say about refunding prepaid sessions which aren't taken? This isn't going to be the last time this happens, and you may want to consider various situations. For example, I'd be pretty upset if I paid for 8 sessions and then something happened which meant I was medically advised not to continue after 2. But if I just got fed up after 2, then a refund wouldn't be reasonable. 

Mark_d said:

You could try to explain that the money is invested in the business, as a commitment was made, so it's not straightforward to give a refund.  If she's making a fuss about getting her half-price payments back then you need to decide what's best for your friendship.  You've already made your contribution to the friendship by giving mates rates.  It sounds like this 'friend' is taking the p***

I agree this friend is taking the p***, but it's not just your friendship with her you need to consider, it's also her potential impact on your business. What's the likely damage to that if you say "sorry, no way" - will she badmouth you to other friends and possible contacts?

That's where your t&c come in! And going back to them, are these block bookings for, say, 8 consecutive weeks, or 8 sessions as arranged? If it's the latter, what's your limit? I buy a certain number of bookings for one of my activities, and I have to use them within 3 months, or I lose them. 

So another possibility might be to say "OK, I appreciate it's tricky right now, as these were mates' rates I can't afford to refund you, but I'm happy to extend their validity. How can I help you make it work?" Another possibility, could you discuss better times for her which might be outside what you normally offer?

SStitanic

Yeah yvou know she’s a friend she was trying to support you, just give it back but let her know you are upset that she obviously does not take you seriously

gropinginthedark

Say that you don't want to fall out over it so "can we come up with a better idea", maybe suggest that you'll be happy to defer the sessions or she could gift them to a friend or family member. Explain you gave a big discount, half price for an 8 session package, that you'd not refund people paying full price who decided not to complete the course for whatever reason.  Do it face to face if possible. If these are one-to-one sessions and you can manage with exercises and basic equipment (bands, small weights...) could you go to her home?

keithyno.1

Well you say she's a close friend, so refund the money to her. It's not worth losing a close friendship over.

BUT if you're now thinking she's not such a close friend after all, with the selfish way she's treated you (it does sound like it's all about her), tell her the money she's paid is non-refundable - it's her choice not to attend the sessions she's booked with you, so it's her tough luck! 

ruffian

If they are a close friend then of course you should repay to maintain the relationship.

if they weren’t so close and you turned others away to accommodate them then you shouldn’t.

I would expect that the answer is somewhere between the two.

jacquifef

Did you have a contract? What do your terms and conditions state? If you didn’t give her a contract or T&Cs then make sure you write one for future customers with an explanation of how much refund they can expect for cancellation of booked sessions. Consider this a learning experience. Without a contract I think I would return the money for the 3 sessions.

The fact that you gave her mate’s rates is irrelevant. You need to treat this situation just as you would for any other customer- the “half price” for the sessions is a loss you chose to take. If that rate is too low, you need to change the discount you give to friends. I assume you now have the time available for others to book so it may not be a total loss.

Another option: could you take your business on the road to her house so childcare is not an issue?

Finally, if you decide you want to refund her but are unable to return the money at present because you have reinvested it, then you can explain that to you friend. Set up a repayment plan to give her the money as you get it in. And for the future, don’t spend money you haven’t earned yet.

Groom

If she wasn't a close friend but an ordinary client, would you refund the money because they changed their mind? It depends how much you value her friendship. Perhaps this is a lesson to be learnt - make it clear at the start in future for all clients that the money is non returnable. She had 5 out of eight sessions where she managed childcare, so I suspect she has lost interest rather than having problems.  

bikaga

If it was my friend, I'd ask if we could reschedule or postpone, and explain that the money's been invested. But definitely make the point that you'd already given a discount. Maybe you could use the time to do something else for her - if the kids are too much and she doesn't have support, could you go to hers and do some physical activity for the kids while she has some me-time? Etc...

Also consider what your normal cancellation policy is - if you refund 50% at this point in time but you've given her 50% reduction, for example, then she can't really ask for anything back.