What You Should Know About Business Cancellation Fees

March 21, 2020 12:54 am Published by Leave your thoughts

You’re probably familiar with the term “early cancelation or termination fee,” be it noted in your gym membership agreement or your internet or cable contract. Then there’s the term “cancelation fee” that’s used in the business world—for example, many electricians use it. The only way to be charged a cancelation fee is if you schedule a service appointment, then cancel it without sufficient notice or fail to be present at the designated time. Your local electrical contractor in North Scottsdale, AZ probably has fee policies in place to protect their business and avoid losing money while working hard to make it.

Businesses big and small need structure and rules. Without these two elements, the business can fail. Fees are just a part of the business world and have everything to do with keeping companies, contractors and product manufacturers afloat. Here’s what you need to know about electrical business cancelation fees.

What is a cancellation fee?

As a consumer, you have the right to cancel any service at any time, or to request a refund if the service was not delivered as promised. By the same token, businesses have the right to charge a cancellation fee for a canceled scheduled service. These fees are typically within reason, and laid out on paper in a way that’s easy for anyone to understand. Charging cancellation fees is one way for a business to protect themselves.

To put it simply, a cancellation fee is what a business charges a client for canceling a service without following the proper procedure. Your clients should know your terms and conditions, since they signed an agreement when they made the decision to use your services. Scheduled appointments, pre-booked services and service membership plans are all subject to cancellation fees.

Are businesses required to charge a cancellation fee?

It’s entirely up to you whether you will charge a cancellation fee or not. Your right to charge cancellation fees must be made clear in the terms and conditions portion of your service contract, and you should also put this info on your website so potential clients can read through it before requesting a service. Your terms and conditions should include an explanation of how customers can cancel properly and the timeline for canceling a service to avoid a cancellation charge.

When should a customer be charged for canceling?

Some circumstances cannot be helped, but your business should not have to cater to every single little off-the-wall cancellation situation. That said, it’s good form and only fair to list some extenuating circumstances in which cancellation fees will not apply, such as a true family emergency or severe weather. Your business can charge however much it wants for service cancellations, but the fee should be reasonable and fair. Just be sure to make clients aware in your terms and conditions of how much money they will be charged if they do decide to cancel.

Electricity is not something to play around with. If you need help with an electrical issue, call Eavenson Electric Co. We’ll set up a time for a highly-trained electrical contractor in North Scottsdale, AZ to come to your home or business to assess the situation and make any necessary repairs.

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