A cancellation call on a Friday afternoon
A customer rings to cancel a corner sofa ordered five weeks ago in a made-to-order fabric. Her circumstances have changed. The sales person does not know whether the maker has started. The buying office is closed. On Monday, the buyer emails the maker, who replies midweek to say the frame has been cut and the fabric ordered, and they will charge a cancellation fee. By then, the customer has been told by someone else that she can have her deposit back.
Every cancellation is handled differently, depending on who takes the call and how the customer feels. Some cost you money you did not need to lose; others end in arguments you did not need to have.
Why cancellations are handled ad hoc
- Nobody can quickly see how far the maker has got with an order.
- Cancellation requests reach the maker days later, after more work has been done.
- Each maker has different cancellation terms.
- Your own terms of sale are applied inconsistently by different staff.
- Decisions and promises are made on the phone without a record.
What inconsistent cancellations cost
| Problem | Cost |
|---|---|
| Late request to maker | Cancellation fees that could have been lower |
| Promises by phone | Deposits refunded you were entitled to keep, or disputes |
| Different answers | Customers comparing notes and complaining |
| No record | Disputes with no evidence of what was agreed |
How we make cancellations consistent
- Each order line shows the maker's status, updated from acknowledgements and progress reports: not started, fabric ordered, in production, finished.
- When a customer asks to cancel, staff open a cancellation form on the order. The cancellation request is sent to the maker straight away, so no more work is done than necessary.
- The form shows the maker's cancellation terms for that stage, and your own terms of sale for that type of order.
- Based on the rules you set, the form shows what your terms say about the deposit and any costs, for the staff member to explain to the customer. Anything unusual goes to a manager.
- The decision, what was said and any refund are recorded against the order.
- The maker's reply is recorded, and any fee is matched to the order, so you know the true cost of each cancellation.
Your terms of sale, and what the law allows you to keep, are for you and your advisers to decide. The system applies what you set, it does not write the rules.
The Friday call, handled well
The customer rings. The sales person opens the order and sees the maker's status: fabric ordered, frame not started. She sends the cancellation request to the maker from the form, and the form shows what your terms say at this stage. She explains it to the customer calmly, with the facts in front of her. The customer accepts. The maker confirms on Monday that no frame work was done, and the fee is lower than it would have been. Everything is recorded.
Alternatives to cancelling
Some customers cancel because of a change they could live with in another way: a delay, a change of room, a change of mind about the colour. The form can prompt staff to offer alternatives, such as changing the fabric while the maker still allows it, delaying delivery, or swapping to a stock item. Many customers prefer that to losing part of a deposit, and the maker may be happier too.
The records build up a picture over time. You can see how many cancellations happen at each stage, which makers charge most for late cancellations and how often an alternative was accepted. That helps when setting your own terms and choosing which makers to work with.
Signs your cancellations need this
- Staff cannot see how far the maker has got.
- Cancellation requests reach makers days later.
- Different staff tell customers different things.
- Cancellations end in disputes about deposits.
- You do not know what cancellations cost you.