Put a cancellation fee clause in my last contract and a client actually invoked it after 3 days

I do web design for small businesses in Portland. Last month I added a 25% cancellation fee if they back out after I start work. Client signed it, I spent 8 hours on wireframes, then they emailed saying they changed their mind. They paid the 25% without arguing. I made $400 for two days of work but lost the whole project. Now I'm wondering if that clause scared them off instead of working through their concerns. Has anyone else had a client pay a cancellation fee and still feel like you lost in the long run?

3 comments

3 Comments

fionanguyen3d ago

ruby_bell47 I actually used to think that way too, I was all about adding fees to protect myself from flaky clients. But after a few times where the fee itself made the client second-guess everything, I started to question it. This situation with the 25% fee, it feels like you won a small battle but lost the war because now that client is gone and might badmouth you. The numbers might look good on paper but the long term trust and relationships are way more valuable than any fee. I'd rather have a conversation about their concerns than have them pay to walk away, honestly.

ruby_bell473d ago

Used to think small fees were protection, but this changed my mind.

mason.drew3d ago

ruby_bell47 mostly I was the same way. The thing that flipped the switch for me was realizing these small fees ADD UP to WAY more than any actual risk would ever cost. It's like paying for insurance on something that never breaks. The numbers just don't work out in your favor long term. Those small protection fees are basically a tax on being careful.