For those of you who make custom made products for your customers, what do you do when a customer cancels the order at the last minute.
Here is the scenario:
- Customer has placed a written order (Value just under R10k).
- Product is made specifically for this customer, its of no use to anyone else.
- In this particular case no deposit has been made, (complicated explanation) but for this example assume common business practice and a deposit has been paid, but it doesn't really cover all costs.
- Customer cancels the order the day before delivery is due. The product is essentially finished.
- There is nothing defective about the product, customer simply decided to get elsewhere. Probably due to a slightly better price.
- No terms and conditions signed.
What recourse does the manufacturer have?
I make stock standard products and so simply return them to stock when this happens. Which means I have limited experience in these situations. My guess is that it needs to be chalked up to experience and that the deposit needs to be increased (difficult) and that a formal standard format contract needs to be signed with each order.
How do you guys deal with situations like the above?