Here’s an idea that is not for the faint of heart. I don’t expect most caterers to either embrace it or even “test” it to see if it increases business. That’s OK. My task, however, is to continually present “cutting-edge” ideas that at first often appear to be “silly” or “impractical” to some caterers.
That being said, I have done this myself when I was a caterer and several of my consulting clients have tried it with great success. It has backfired only once that I know of. On the other hand, this bold idea has secured sales that would have gone elsewhere. Additionally, I have found that prospects will pay a higher price for their catering to get the guaranteed refund opportunity.
The copy below is sent to a person who has agreed to become a client for signature and a deposit, or it is just signed at the end of a “live” sales presentation just before the prospect gives you a deposit payment.
AGREEMENT AND DATE RESERVATION CONFIRMATION
Enclosed please find our payment of $8,500 to confirm our wish for ABC Catering to provide food, staff, equipment and other services for our event on Monday, (DATE) at Grace Temple. This payment will be refunded in full, with no questions asked, if our plans change and if we wish to cancel our catering anytime preceding 60 days of (DATE). Refunds will not be given is cancellation comes with less than 60 days of the event date. The balance will be due in full at the conclusion of the event on (DATE).
_X________________________________________
Mr. Jim Doe
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