The Problem of Client Cancellations

Loren Wesley Vankirk is the CEO of VanKirk Electric, a company that specializes in multi-family construction and mixed-use projects across the United States. Under Loren Wesley Vankirk’s leadership, the company has grown from its small-town roots to a national presence.

Big or small, electrical contracting businesses will always have to deal with the significant problem of client cancellations. It is a balancing act between maintaining good customer relations and keeping your business protected.

One of the most common ways to reduce cancellations is to introduce an associated fee. Cancellation fees protect you, but they still upset clients even if they are fully aware that the fee will be assessed. If you value a customer’s business more than the fee, you can choose to waive it.

Another way to protect yourself is by requiring a non-refundable deposit. You will find that this strategy is even less popular than the cancellation fees since a lot of customers see it as sketchy to require such fees. Ultimately, you could choose to absorb the cost and try to fill the time with other projects. Whatever your policy is, make sure your clients understand it when entering into a contract.