Charging in advance

[Nuno]

What is the position on charging in advance?

I got a rather panicky email overnight from a cousin who is setting up for the first time, as a 'life coach', and Trading Standards have apparantly told her that charging in advance is not 'recommended'. (She sent her T&Cs to Trading Standards for checking. Muppet.)
I think, yet again, Trading Standards are talking rubbish. BT charges line rental in advance, loads of printers ask for money in advance, and the whole of ecommerce is based on paying in advance.
Has anyone got any references, guidelines etc I can pass on to my poor, nervous cousin to reassure her? It's tough enough to set up, but being bullied by Trading Standards as you do it is not fair.
Thanks.

 

[Zara Accountancy]

There is absolutely nothing wrong with it at all. Only concern I cab think of is how to explain this to potential customers and she should tell them this reserves a slot in her diary and if for any reason she does not turn up then she will refund fully. Oh and make sure as well as invoicing she is actually paid in advance as well.

 

[crphillips]

Even so they're only saying its not recommended........it doesn't mean you can't do it.

 

[da8iwr]

I have just done a huge 4 week job in Oz with the agency that makes the Linxs effect adverts, they are the largest advertising agency in Oz and have offices in LA and London, and they will always charge massive clients 50% upfront.

I won't even turn my computer on until i have 50-75% upfront, and the trading standards can "Recommend" as much as they like, but that doesn't mean it is a law, it is just a recommendation.

Protect your own arse and get a "Non Refundable Deposit" upfront.

 

[MH1]

There is absolutely nothing wrong with it at all. Only concern I cab think of is how to explain this to potential customers and she should tell them this reserves a slot in her diary and if for any reason she does not turn up then she will refund fully. Oh and make sure as well as invoicing she is actually paid in advance as well.

Sorry, I don't agree with this. If someone has booked a space in the diary and fail to turn up, refund if there is no loss, ie she manages to resell the same spot, but do not if she does not manage to recoup her time.

I used to do the same as a courier/removals, if a client cancelled the day before and I was unable to to get any work, particularly when I would have turned others away, the money was lost by the client, and I never had a single complaint regarding this either in five years.

BTW I used to charge 100% up front.

 

[Estimator]

I got a rather panicky email
Has anyone got any references, guidelines etc I can pass on to my poor, nervous cousin to reassure her? It's tough enough to set up, but being bullied by Trading Standards as you do it is not fair.
Thanks.

Is she really cut out to be a life coach?

 

[Nuno]

Is she really cut out to be a life coach?

No. Not in the slightest. Real passive-aggressive victim attitude and seems to have little day to day contact with planet earth.*
Did quite well in HR which says a lot.
But family is family.

* Maybe in the genes....

 

[Zara Accountancy]

If you read my comment again you will find that I was referring to the business owner cancelling.

Sorry, I don't agree with this. If someone has booked a space in the diary and fail to turn up, refund if there is no loss, ie she manages to resell the same spot, but do not if she does not manage to recoup her time.

I used to do the same as a courier/removals, if a client cancelled the day before and I was unable to to get any work, particularly when I would have turned others away, the money was lost by the client, and I never had a single complaint regarding this either in five years.

BTW I used to charge 100% up front.

 

[MH1]

If you read my comment again you will find that I was referring to the business owner cancelling.

My mistake, celebrating the Welsh Grand Slam win too enthusiatically it seems.

 

[sla3]

Trading Standards have apparantly told her that charging in advance is not 'recommended'. (She sent her T&Cs to Trading Standards for checking. Muppet.)

Well done her. It's nice to see someone taking the initiative and responsibility to get some feedback about how fair their Ts and Cs are to their personal customers. Avoids a lot of problems down the line and gives confidence that she is running on ethical lines which she can use in her promotional material. Hardly the actions of a muppet.

Has anyone got any references, guidelines etc I can pass on to my poor, nervous cousin to reassure her? It's tough enough to set up, but being bullied by Trading Standards as you do it is not fair.

Yes, I'd pass on the the guidelines issued by Trading Standards which would reassure her that she is acting a) within the law and b) in a manner that her clients would appreciate. If she follows these guidelines she will also protect herself from influence and bullying from family members who rant and rave and call her things like "muppet" when she acts sensibly and ethically.

No-wonder she's nervous if this is what you think about her:

No. Not in the slightest. Real passive-aggressive victim attitude and seems to have little day to day contact with planet earth.*
Did quite well in HR which says a lot. But family is family.

Sadly she can't choose her family, but she can sure as hell choose someone better to get advice from than someone who seems to despise the very air she breathes. Frankly I'm appalled at the disrespect and contempt you so cavalierly make public: imagine what she would think should she stumble across this hatred one day?

 

[Moneyman]

Yes you can charge in advance but it can cause problems and is not a help to sales. If you take a deposit against cancellation people understand in advance.