Can I ask for a non refundable deposit?

[Beermonster]

Normally when I offer products for preorder I take payment in full and if the customer wants to cancel before it’s in stock I refund them, usually because the products are up to £60-£70 so it’s no great loss if I have to put another in to stock.

I have a product coming in the will retail for about £700, I was thinking of taking a £100 nonrefundable deposit, I won’t be holding stock of this so don’t want to be stuck with them, if a customer cancelled am I within my rights to not give them their deposit back?

 

[Newchodge]

Normally when I offer products for preorder I take payment in full and if the customer wants to cancel before it’s in stock I refund them, usually because the products are up to £60-£70 so it’s no great loss if I have to put another in to stock.

I have a product coming in the will retail for about £700, I was thinking of taking a £100 nonrefundable deposit, I won’t be holding stock of this so don’t want to be stuck with them, if a customer cancelled am I within my rights to not give them their deposit back?

Probably not, uness the item is perdonalised. Bear in mind the customer can also return the item for a full refund after receipt of it, if this is not a face to face sale.

 

[japancool]

Normally when I offer products for preorder I take payment in full and if the customer wants to cancel before it’s in stock I refund them, usually because the products are up to £60-£70 so it’s no great loss if I have to put another in to stock.

I have a product coming in the will retail for about £700, I was thinking of taking a £100 nonrefundable deposit, I won’t be holding stock of this so don’t want to be stuck with them, if a customer cancelled am I within my rights to not give them their deposit back?

Business customer or consumer?

 

[DefinitelyMaybeUK]

Assuming this is a consumer sale, would the item fall into the "made to the consumer’s specifications" clause of the Consumer Contracts Regulations, in which case a refund would not be enforced under UK law if they decided to cancel the order. I'd of thought that as long as the customer has agreed the exact product spec, the deposit amount, when the balance is due and the date that the product will be supplied, then a non-refundable deposit is not unreasonable for this type of goods contract. Of course, if you break the contract or it's not reasonably re-negotiated, then the customer would be entitled to a full refund.

 

[Newchodge]

Assuming this is a consumer sale, would the item fall into the "made to the consumer’s specifications" clause of the Consumer Contracts Regulations, in which case a refund would not be enforced under UK law if they decided to cancel the order. I'd of thought that as long as the customer has agreed the exact product spec, the deposit amount, when the balance is due and the date that the product will be supplied, then a non-refundable deposit is not unreasonable for this type of goods contract. Of course, if you break the contract or it's not reasonably re-negotiated, then the customer would be entitled to a full refund.

There is a difference between made (or ordered) to order of a standard product and made to order of a unique item. If this is a standard product (which it soumds like) then all the power is with the provate customer.

 

[Beermonster]

Business customer or consumer?

Consumer.

 

[japancool]

Consumer.

Then no, you can't ask for a non-refundable deposit UNLESS the item is personalised in some way.

 

[fisicx]

The deposit is just to secure the order. Once delivered they can change their mind and get a full refund. And you pay for the return postage.

 

[LPB 123]

Once delivered they can change their mind and get a full refund. And you pay for the return postage.

You don't have to pay for return postage as the seller for a "change of mind" return, although it is good customer service to offer this.

As above though, you can't make it a non refundable deposit in this scenario unless it's personalised.

 

[japancool]

A number of my competitors do this. They probably have no idea they are breaking the law.

 

[fisicx]

You don't have to pay for return postage as the seller for a "change of mind" return, although it is good customer service to offer this.

As above though, you can't make it a non refundable deposit in this scenario unless it's personalised.

Then all they do is claim not as described or faulty and you pick up the bill.

 

[DontAsk]

You don't have to pay for return postage as the seller for a "change of mind" return.

You do if you do not make it clear in your TS&Cs that the customer pays.

 

[antropy]

So it sounds like the answer is "legally no, but it is done by others and they do get away with it mostly".

Paul.