— Some important truths about loss of event deposits.

By:   Marcinho Savant, PCWP [LWPI], ISES, IAWEP, ICLMA, IATAN

The Fairy-Wedding-Father™ (WHAT!?  Cindy had a Godmother!®)

This is an unfortunate situation that I hear about far too often.  Fortunately we don’t have to deal with it very much, because we go to great lengths to prevent these unfortunate occurrences.  Losing deposits can be harmful, inconvenient and, in some cases, devastating to clients.  Here are some facts from behind the curtain, on why this seemingly harsh penalty befalls many people.

All companies charge deposits for much the same reasons:  To protect themselves from losses when removing dates, products or services to well-intentioned clients.

A recent example is of a wedding couple which planned to host their event on a yacht.  This is a popular venue choice for a number of events we’ve designed.

This particular couple, let’s call them Algernon and Dorian, are very hard-working professionals who were thrilled about the chance to book an unusual and memorable space for their big day.    They made a ‘good-faith’ deposit of $1,000.00 (it was meant to be $5,000.00, but I was able to work out a special rate as a courtesy to the couple).

They had fallen upon challenging times, suddenly, and found themselves unable to pay the full amount, but we didn’t want them to lose the date!  Hence the negotiations with the yacht broker and owners respectively.

People must realize that, especially in the example of a venue… the date is the thing.  According to Nancee Meyer, Yacht Broker for “Yachts for all Seasons” in New York (One of our most RELIABLE, Honest professionals), “The boat owners and I are not selling an event.  We are selling a date.”  This means that when a client decides to begin the booking process, the company(ies) involved immediately remove their ‘inventory’ from the books, thereby, effectively, “selling” the date.

This, then, means that ANY OTHER BOOKING INQUIRIES are rejected because the date now belongs to the active clients.  When inquirers hear that the date is no longer available, they go elsewhere and continue their search— most often, reasonably, never to be heard from again, because there is no availability for their date.

Brokers, owners and I have no desire to collect and retain money from a client whose circumstances have changed.  We make every effort to re-sell the date on behalf of the client who is facing unexpected challenges.  Meyer continues, “We attempt to sell the date to another customer who calls in looking for the date.  Sometimes this is possible but other times it’s out of our hands.

“Of course we want to rebook the date with another booker, because we lose money, every time someone needs to cancel”

In the case of our example client above, not only did the boat lose money, the broker lost their commission.  So, the yacht,  which was owed $5000.00, but were kind enough to work with $1,000 in good faith, lost $4,000.00 to which they were entitled.  In this case, fortunately, while ‘painful’, the client lost $1000.00— when it was supposed to be $5000.00.  They actually came out better, as a result of our negotiations and favor-seeking.  They could have lost all $5000.00 when they could no longer swing the booking.

That said, let us not forget the effect a cancellation has on the companies: they lose deposits, contract payments and event/date revenue when a client cancels.  In addition, they have to deal with the reality that sometimes, the boat /service WILL resell and they are not going to lose money.  Meyer:  ”It’s hard to resell dates hoping to lure back people who were told that the date they wanted isn’t available any more.  They look at other companies.  They move on.  This year, we have only had three cancellations.  Of them two dates were unable to resell.”  One, however, did.

From where I sit, Meyer is absolutely correct when she adds “We DO care if money is lost by clients.”  Of course we do, because we genuinely CARE about our clients.  But let’s not forget about the Yacht owner, who has not only lost $4000.00 of the proper deposit amount, but, in this case, lost an additional $20,000.00 in rental revenue because of the cancellation that will, likely, NOT be re-booked.  It’s a lose-lose all around.

So, what can be done about it?

1. READ YOUR CONTRACTS CAREFULLY.  Most of which state plainly, that deposits are non-refundable, for all the reasons, listed above.  At savvyplanners.com, we ALSO read and confirm the terms of the agreement, on the client’s behalf.  We also review the terms WITH the clients to assure understanding.
2. Be prepared, in your planning, to cover the financial responsibilities of entering a contract with a broker, seller, or owner.  Perhaps a funding ‘back-up plan’, can prevent finding a cancellation necessary due to financial challenges.
3. Be honest with yourselves, and with your event designer, about the realities of your circumstances— both current AND as they change.   It’s our job to protect you and represent your interests with the professionals which bring your dreams to life.  This can help us help you to be responsible and realistic about what options are best suited to your individual challenges or comfort levels.
4. Try to understand that, though you may find the need to cancel a contract— in order to protect yourself(ves), Brokers, owners and vendors also have responsibilities and obligations.  Or they, TOO, will find themselves in undesirable financial situations.
5. ASK QUESTIONS of us. It is our job to clarify any concerns you may have as a client.  It is also our responsibility to serve as a Liaison between industry players and our clients in order to effect the optimal results for all concerned.

It all rolls downhill, if you will.  The trickle down affects every person and provider along the chain.  Just know that we in the industry have no desire to see clients in distress.  We make every effort to comfort, advise and protect our clients in situations such as these.  It is a combined responsibility— yours and ours.

Essence Magazine has featured their first lesbian couple in their recurring “Bridal Bliss” feature!  In this bold and compassionate step, Essence has opened a remarkable and significant portal into the growth of acceptance and respect of GLBTI people of color— all over the world.

Here is a statement from, Senior Event Coordinator, Marcinho Savant, on the importance of this move by Essence magazine.   You could have knocked us over with a feather!  We stand behind and WITH you Essence!

Marcinho Savant:

“This monumental inclusion, in one of the world’s GREATEST magazines for the black woman, is a clarion call announcing and CONFIRMING their acknowledgement that African-American women count lesbians among their ranks. This courageous, unexpected, timely and significant feature PROVES that there are those who defend inclusion, dignity and respect for people from all walks of life!

I never guessed, that Essence would elect to WALK it, but i am grateful, humbled, honored and excited that they HAVE! There is no gray area in equality! All people want to be treated with dignity!

My, already great, LOVE for the Essence family and legacy has grown exponentially because of their daring refusal to be a part of discrimination against our sisters! I grew UP with this publication in our home. They CONTINUE to blaze trails and knock down barriers! If EVER there was a TRIUMPHANT lesson in FAIRNESS and equality for the African-American community… this is certainly one! ♥  i stand behind and WITH you, Essence, for your brilliant emergence, yet AGAIN, as a LEADER!

KUDOS Essence! Congratulations to the happy couple!

-Marcinho Savant