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- Haydesign
Howdy,
Say I am offering a 12 or 3 month contract for a service to someone.
12 month contract = £500 pcm
3 month contact = £600 pcmNow, there is no cancelation fee. So I'm worried people might just opt for 12 months then cancel after 3 months because of the lower cost.
How can i tell people that if they cancel within 3 months they will have to pay the 3 month contract rate? I'm struggling with the words!
Or should i just insist on a cancelation fee?
Or should i give up business completely and go play with the kids outside on their electric skateboards?
- doesnotexist0
yes cancellation fee
- voiceof0
Why is a 12 month cheaper than a 3 month? I would imagine it would be cheaper if you compared the two on a month to month basis but not the overall price.
- i think those prices are per month, no?doesnotexist
- Unless pcm has something to do with monthly cost and I should brush up on my reading comprehension.voiceof
- because I want them to pay me for a year. I incentivize it by making it cheaper.Haydesign
- yeah i don't know what pcm means eitherdoesnotexist
- per calendar month?Jimbo82
- Haydesign0
What would you say was a fair cancalation fee then, using the costs I've shown?
- doesnotexist0
hrmm....2 months pay?
- Jnr_Madison0
'12 month contract is subject to an increased rate of 600pcm if cancelled within the first three months.'
- Jnr_Madison0
Per calendar month n00bs.
- I got it after I typed it. I am way to slow this morning I should take a nap.voiceof
- Jnr_Madison0
I do agree though this isn't the best way to approach this.
- doesnotexist0
if you want them to do a year contract i wouldn't even bother offering a 3 month option... then if they cancel you still got your money.
- Yeah but he want to show it's cheaper to hire him long term.Jnr_Madison
- Haydesign0
Thanks for helping fielding the noob questions Jnr. LOL.
You have been very helpful. I admit is not the best approach but its a long story. I think you helped nail it with...Cancelations:
Cancelation of your 12 month contract, within contract, is subject to a base rate charge of 600pcm for every months use of the service.
- Haydesign0
Its an online facility, not my freelance/design/work time etc.