Okay, let’s talk about one of those awkward things in business:
What to do when you get a refund request for your products or services.
Now this doesn’t have to send you into a shame spiral. It can be really easy to deal with and in fact, it can be a really positive thing.
I’m Denise Duffield-Thomas of LuckyBitch.com and let’s talk about how to deal with refunds.
Prefer to listen? Click below.
Lucky Bitch Video Transcript – How To Deal With Refund Requests Without Freaking Out
Okay, so the first thing to know is that just by giving a refund, it doesn’t mean that you’re a bad entrepreneur, quite the opposite. It’s actually a rite of passage.
Now most businesses will get some refund requests at some point in time. I do get them occasionally too and it is just part of being in business.
It’s no big deal.
So, you’re either in two places.
- Either you’re worried about your first refund request and maybe it’s blocking you from putting things out in the world.
- Or you’ve just received a request and you’ve just being frantically googling for somebody to tell you what to do.
So, here I am yehey!
Do not panic.
So, the first thing to do is do not panic. It’s totally okay.
Just sit on the email or the request for just a little while, while you work out what to do.
Now in the future you’re going to have a bit of a process put together on this so you’re not going to freak out every time it happens.
But for the first time, don’t just sit and respond to them straightaway. You’ve got to sit on it.
Sometimes people make really unreasonable requests so they might not just be asking for their money back. They might be asking for some sort of compensation or whatever.
Now case in point, we accidentally charge somebody twice on their credit card one time and you know we spotted it, we actually respond straightaway and said, “Hey, look. We’ve refunded the extra one straightaway. We’re really, really sorry.” And the lady came back and said, “Okay. Well, in compensation, I want to have a private coaching session with Denise.” We gracefully declined her request.
So, you don’t have to just jump and say yes to anything that people are asking for.
So much of this is about knowing your business boundaries. You can get more on setting your boundaries here: Better Boundaries Will Help You Love Your Business & Life Again (I Promise)
Put a process in place
But it’s also okay just have a money back guarantee so that is the process I want you to put in place. If you don’t have it already, sit down determine in what circumstance that you’re okay to give a refund and what time frames you’re okay to give a refund for.
So, for my Lucky Bitch Money Bootcamp, I have a 60-day money back guarantee. If somebody contacts me says it’s not for me, no problem. They get their money back. But for example, with private coaching, you might not want to give such a long refund period.
It’s totally up to you and your business.
Just check and see if there are any legalities in your country about when you actually have to give a refund for.
Once you’ve got that process in place, you can also save the email that you’re sending to this person and keep it for next time so you can tweak it.
I’m a big believer in putting the process in place. Here are some processes that I use every day: Daily, Weekly and Monthly Actions To Keep Your Business Moving Forward
Now it could be that you request for them to fill out a form to get their refund and let them know what’s going to happen after that. How soon after they have their form are you going to refund their money?
Now, I made a big mistake right at the beginning. I put on the form something like, “How much did you pay in your local currency?” Because I was charging in Australian dollars at the time and I thought, “Oh, well, I’ll let them just tell me how much they paid.”
Then I refunded them that amount. Now the mistake I made is that currency had shifted and it was actually costing me money to refund this person.
So, learn from that kind of mistake and just be very clear, maybe on your terms and conditions that you have no responsibility for any currency changes and they just get refunded for what they pay.
Do you charge an admin fee?
The other thing you want to ask yourself is if you’re going to do an admin fee. Now, I learned this the hard way, if somebody pays through PayPal with you and you process a refund within 60 days, PayPal refund the fees that they charged you for receiving that money. After 60 days you lose that money.
So, it’s up to you again.
Do you want to enforce an admin fee to cover some of your fees and expenses for refunding that person? Or is it 100% money back guarantee, no questions asked?
It doesn’t have to be awkward.
Now the last thing I want you to remember is this is totally a rite passage, so congratulations if you have received your first refund request. Remember it doesn’t have to be awkward. These things are just the business of being in business and you can totally, totally handle it.
So, I’d love to hear from you down below.
Have you learnt any lessons about refunds? Is there anything that other people should really know, like some of the tips and tricks and mistakes that I’ve shared with you in this video?
And for everyone else, come over to LuckyBitch.com because there is heaps more stuff about how to have way more fun in your business, have those awkward conversations with ease and make a lot more money.
Have a great day. Bye.
Did you miss last weeks post? Check it out here: Should You Be Transparent on How Much Money You Make?