How do you handle deposit disputes?
- Thread starter TheOlogee
- Start date
No, seriously. It is an Industry. There are companies etc that exist because of DJs. DJ Software Developers, Manufacturers, Insurance Brokers, Subscription Companies, Magazines, Clubs etc,There... I fixed that for you.
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I make my living by DJing. I report my income and therefore don't have a problem proving financial responsibility to get a line of credit from a retailer when buying gear. So yer, I am part of that Industry.
I would point to my client file that includes the following documents:
1) 2 hour meeting with the clients to go over the big picture of their event. With mileage log.
2) Clients receipt of my Planning Documents.
3) E-mails exchanged with the client to present high level options for reception order of events.
4) Records of Venue research (map, floorplans, etc), and notes of phone call with venue to determine any "outside vendor" requirements.
5) Records to show that I had completed the venue Vendor Registration process. Including mileage logs (if any).
I would have ALL that in the first two months of signing a client...regardless of when the event is scheduled. I would also include any records of other leads inquiring about the same date.
That, along with the explicit statements in the contract about the nature of the work performed BEFORE the event "should be" enough to win in court....for some value of "should be." :triwink:
I'm curious, have you ever been taken to court by someone trying to get their deposit back?
There are companies that exist because of teenagers as well. Are teenagers an industry? Not to belittle what we do, but let's face it, we're the teenagers in that analogy. How about unsigned bands? Companies exist for them too. Would it be reasonable or laughable if someone were to say "I am in the bass player industry'?
You're never going to see the day where the DJ is revered as some Fortune 500 example. Have fun, make a living and run it as you see fit.
Yes, but no one brush or blanket covers them all. There are those that would like to change that.
Not so far...but I have attempted to learn from another local DJ who was taken to small claims court.
You obviously are very thorough in your documentation but have you ever weighed out how much time/energy you spend towards doc, presumably in an effort to keep a deposit on a cancellation, versus how much money would actually be preserved? Just wondering your thoughts on if it's worth the effort.
This really is not an excessive amount of documentation. All of the documents that I keep are to deliver on my services, or as normal business records to ensure that I can write off reasonable expenses. I do not put any effort into documentation specifically for "lawsuits."
My calendar is electronic and I keep all meetings & appointments, with addresses & times & contact information, and I add some high level notes about the meeting. I can search for all meetings & appointments per event (tagged with client last name & event date).
Every client gets a paper folder. I include a summary checklist, phone/contact log, and blank contacts, planners, vendor contact information, etc. I print out venue information and include that (maps, floorplans, contact information). I log all meetings & phone calls for that client - either with the client, venue, or other venues. I keep e-mail electronically, and file EVERY e-mail I send or receive about this event in a folder by client name & event date. I will typically give the client a paper copy of the form and setup a google docs folder with a shared electronic version. I keep the electronic version current...even if the client prefers paper. I have a flap to keep receipts for anything "event specific" - meals, parking, special music. For the event, I print out current copies of all the planning documents and use that at the event. I prefer paper because I can mark it up as needed during the event.
I have a single paper mileage log for all business trips...this is documentation for tax purposes.
How do you collect & organize all the details for an event?
We have only had one person be a hard ass about the deposit. We went back and forth for a couple days on it. He claimed his wedding was canceled and that they were going through a financial hardship blah blah blah.......which I would have been more than happy to work with him on the deposit....had he not forgotten that he had friended me on Facebook and about 5 minutes after he called and canceled his wedding with us, he put a post up about the great deal he had found on the DJ for his wedding lol
H$ll, after all that I'm ashamed to even think about telling you. :triwink: Good job and thanks for kicking me in the seat of the pants. I got some improving to do.
What you describe is typical of a unique band or single DJ with no other resources. I am able to book other DJs for gigs therefore the issue of the dates is only minor. At worse, I have the same problem everyone else does - I make the most money when I can do the job myself and I prefer the jobs not all happen at the same time - but, that'e beyond my control.
The type of client most likely to cancel is also the customer profile I don't pursue very hard - like youth groups, middle schools and ordinary high school dances. I'll book them if they call but, I don't advertise to them.
Some clients aren't required to pay a deposit. They are repeat clients going back decades in some cases and I work with them no matter what. When you're doing your 23rd year/event with someone a deposit isn't really necessary - you have the job as long as it exists.
I honestly have not had a problem in 30 years.
I had one wedding where they cancelled a week prior. I had already received the depsoit AND the final payment. the FOB who hired me emailed me the bad news and said that he did not expect a refund due the lateness of the cancellation.
I had one event cancel due to a hurrican that flooded the venue. But I was working for a multi-op, so I never saw any money, anyway.
If the client did not ask for a refund,I would not offer it.
If the reason for the cancellation was something tragic and/or personal...
I would offer a refund.
I had one wedding where they cancelled a week prior. I had already received the depsoit AND the final payment. the FOB who hired me emailed me the bad news and said that he did not expect a refund due the lateness of the cancellation.
I had one event cancel due to a hurrican that flooded the venue. But I was working for a multi-op, so I never saw any money, anyway.
If the client did not ask for a refund,I would not offer it.
If the reason for the cancellation was something tragic and/or personal...
I would offer a refund.
Yes, you are correct that it's a bigger issue to a single-op that doesn't have as much flexibility.
I don't think there is a single right answer, just some things to think about as you make out your contract. Understand what flexibility you have, make sure everyone understands and be consistent.
I have a bit of a twist on deposit problems. I got a check in yesterday that should have been for $475 but was written for $300. The FOB also put "final payment" in the memo section. I emailed the bride to tell her that until I receive the additional $175 and confirmation that this is a partial, the contract is not in force.
Make a copy of the check, send a receipt with the Balance Due. As long as you are conforming to what is on the Contract you should be fine. You can also return the check and ask for a new one with the amount as agreed.
Or just resend the invoice with the payments made and the amount still due by today (or whenever).