Weddings Deposits and Tax Time...

To many ads? Support ODJT and see no ads!
PERHAPS your definition of the legal status is accurate, but that doesn't make the practice "stupid". Taking a retainer is customary in the wedding industry and I have never had a client come force me to give back a deposit. In fact, I've had a number of events where they lost their deposit and I was able to re-book the date. Now perhaps you or others here might not think that's fair business practice but this is clearly spelled out in the contract, which the client agrees to and signs up front. That "stupid" practice has put a significant piece of revenue onto my books. Feel free to run your business the way you see fit. I'll run mine my way.
Oh brother here we go again. Proper advise is being disseminated and then the "you do yours my way and I do mine my way" attitude takes over. Coming from a Jack of all trades.
The Term "Liquidated Damages" is a key factor in getting to keep deposits as it pertains to DJ type business. It is a term I have always used in my Agreements (I do not call mine Contracts). It is in the best interest to start the ball rolling by means of Phone Calls, Communications, Site Visits etc as related to the booked Event. This way one can show work actually done and therefore a justification for payment if the Client decides to cancel. I hope that some would take the time to really speak with their CPA so they can be on the straight and narrow when it comes to their individual State and Federal Laws.
Why do DJs always try to reinvent the wheel?
 
Last edited:
Canute - stop stirring the pot. Aside from 'labeling' people, your post may have provided beneficial information for some ... and as noted many times previously, this is not the only way to do something. You have demonstrated how you show your use for a deposit. There are many ways to reach a goal.

Bob provided sound advice without you chiming in. Not once did Bob say that this was the only way to do something .. nor did RR. Various people do various things for various reasons.

If you have something beneficial to post, then do it in a productive manner and then move on. Adding insults does nothing but deteriorate the message and deteriorate the thread.
 
Last edited:
  • Like
Reactions: Valerie Hicks
I may be wrong, but I don't think Pro had an issue with money being received to hold a date .. it's the terminology and meaning of "retainer".

Correct.
A retainer is a client credit account drawn down by verified billing. A minimum balance is maintained by the client and drawn down by the vendor who only works when there is a retainer balance sufficient to the billable hours. The law dictates that any unused portion of the retainer be returned to the client. Liquidated damages and non-refund-ability do not apply to a retainer. You can be fired before any work is performed and the retainer would be fully refundable.

When you book a hotel room you accrue a "reservation fee." This fee is for a reservation - not the room itself and therefore it is earned the moment you book the room regardless of whether you show up. It is not refundable if you cancel outside of whatever period or terms they have defined. This is the kind of non-refundable deposit a DJ should be taking.

Perhaps if you are a booking agent - you would accept a "retainer." This allows you to establish proof of funding from the client but, not pay the band or other vendor until such time as they actually perform. This way, if you have to replace the act you still have the funds on hand to pay the new performers, or refund the client.