Customers who cancell orders upon completion
 

How would you guys handle a situation like this?

Online guitar store wants to become a dealer and sets up their first order. A fairly sizable one. They're given an approximate shipping date, which is typically about four weeks, "but please allow up to six" as it says on my website.
Building commences. We put aside everything else for nearly two weeks and busted azz to finish it.

Last week I was give a call to inquire on the progress. I explained that the order was nearly complete, only waiting for three parts to arrive on Friday and they could probably be shipped then.. It would be a five minute job to finished and box them up.
On Monday (which happens to be the exact day of the approximate shipping date) they called again asking if it had shipped on Friday. I explained the parts hadn't arrived, and I offered to ship what was completed overnight. I was told "we don't do business like that, we're canceling the order"

They've dealt with the same supplier before.
This order used up nearly all of one of my supplies.

So now, with the order 99% complete, they wan to cancel a large order.
My ordering policy states that no orders may be canceled after the build commences.

With the economy the way it is, this is a put-me-out-of-business move. if they do a chargeback, they'll leave me with zero dollars. The depleted supply mentioned above needs to be purchased again... wich has been out of stock for almost a month.

How would you handle this? Bend over and let them cancel the order? We're well within our "please allow up to six weeks"



I shipped the completed part of the order overnight later the same day, by the way. I'll refuse to let them cancel, and I'll fight for it.

If it will put you out of business to let them cancel, you have no choice but to fight.

Good luck bro.

Any chance this is for Musician's Friend? A real misnomer, eh?

In my industry (Electronic Components) build-to-order parts are always "NCNR", meaning non-cancellable, non-returnable. This should be stated clearly on the T&Cs of your quotation and in the order acknowledgment.

You should ship to the customer on the agreed ship date. They can try to refuse the delivery, or return them, but you should reject all incoming shipments without an RMA, which of course you will not give them for this NCNR order.

The only exception to following your policy would be if you are chasing a much larger piece of future business at this customer which this order would jeopardize.

I say shove 'em down their throat. A purchase order is a contract. Now we'll see how your T&Cs hold up. SmileWavy

My business puts me in the same situation as much of it is work done "to order".
I would do a few things:

1) Update your Terms and Conditions, and make them overly visible. Just because something is on your website does not mean they saw it or that they are bound by it. Include the T&Cs with every correspondence & on every order confirmation. Make it impossible to ignore the T&Cs.

2) If they return the items you sent, I would consult with an attorney. The attorney may want to send them a demand letter. You will probably lose this customer but you may get paid and remain in business.

Did you get a physical purchase order from the customer? Did it have a cancel date on it? What were the terms of the PO you accepted? It looks like you ended up doing a partial shipment on their PO on the ship date, does their PO allow for partial shipments?

They signed for the delivery five minutes ago.


Nope not Musician's Fiend.
Proguitarshop.

I spoke to several friends as well as to how they would handle this situation. One is the VP of a very large competitor. they said they only delivery on time about 80% of the time, and one day late should not be an issue for them.
He said don't bend over...

When they called to enquire they were already looking to cancel the order.

The call was a fishing expedition.

Stop talking about ship dates with them, only talk delivery dates. The ship is irrelevant as long as the goods arrive on schedule and you did not pass off higher shipping on them.

Oh, and do NOT give them any hint that canceling this order will hurt you financially.

They'll use it to negotiate a discount to keep the order alive.

I'm actually wondering if that's what they were fishing for/hoping for all along.

Screw 'em. Granted, we've only heard your side of the story, but unless you're lying, screw 'em. They're being unreasonable.

Order came through via email. There was no cancel date.

Here's my order cancellation policy, as stated on my website.

Order Cancellation policy

****(we) will not consider order cancellation unless more than six weeks has past from date of payment or an order is under a $300 total. Typical individual order delivery times are 3-4 weeks, but please allow up to six weeks.

Once a Dealer or OEM order build is started, Wolfetone will not consider an order cancellation unless more than six weeks has past from date of payment to time of shipping. Typical Dealer/OEM delivery times are four weeks, but please allow up to six weeks, as delivery times will vary according to our current workload.

I'll wager the customer is angling for a discount on the final invoice. This seems to be a way of business any more. And, if you want future business, you have to build it in. If your competitors already have, you're on more solid ground. If not, you may have to let them learn on their own.

They won't get it. They already got such a steep discount because it's wholesale work. I make very little on wholesale work..

You say. But, what some companies do is offer you the factored invoice amount or nothing. They gauge the discount amount against what it will cost you to collect. If it's more than what you can sue for in small claims, they have the advantage because time is on their side as well.

I wish you well.

Do you have an attorney that practices in your state that you can consult?

Gald they accepted the order, you must have been sweating.

Sounds like a customer you can't afford to keep... that is a dirty way to do business. It's demotivating to put so much effort into something for a client who is trying to undermine you. I know people will say "business is business" and just go with the flow. Screw that, I hope you have the opportunity to refuse their next order.

One of the best pieces of advice I ever got was to track your clientele carefully, and how much time and energy you give them. Pick your worst client, fire them, and give that time & energy to favorite (or new) clients. It is *really* effective, and you will enjoy your work a lot more.

My wife used to work for May Co. now part of Macy's the invoice said 2/10 net 30. (2%discount if paid in ten days; otherwise due in 30 days. They'd pay in 60 and take the 2% and the attitude was if the vendor rolled over, they'd take the 2% discount; if they complained they'd rebate the 2%; this was the standard practice. Stick to your guns or tell them you will share your experience with them on the internets.

I sent them off an email yesterday explaing that under no circumstances would I accept a cancellation.
I haven't heard back from them yet.

Be sure and report any slow-pay problems to the credit bureau or D&B.