Episode 144: How to talk to your buyers about non-refundable deposits

Nicole & Adam talk all things deposits! Setting expectations and communicating clearly with your buyers are instrumental in ensuring a smooth transaction. Learn how to talk to your buyers about deposits, make sure they have a full understanding of what they are and why they’re so important, and what “non-refundable” really means.

Transcript

Nicole Engelman [0:29] Hi, everyone! And welcome back to another episode of the Good Dog Pod, where we discuss all things related to canine health, research, how Good Dog helps breeders run their breeding programs, and so much more. I’m Nicole, the Breeder Community Lead here at Good Dog, and your host for this week’s episode. I’m very excited to introduce the topic of today’s podcast, which is how to talk to your buyers about deposits, make sure they have a full understanding of what deposits are and why they’re so important, and what non-refundable really means. I’m joined this week by Adam, one of Good Dog’s specialists, who I’m sure many of you already know very well. Together, we’re going to be sharing tips from real members in our community and how to guide these important conversations with our buyers transparently. So you, your buyers, and your programs are set up for success right off the bat. Just a quick disclaimer: this podcast is provided as a resource for general information purposes only. It shouldn’t be interpreted as legal advice in any subject matter. We recommend connecting with a lawyer in your state if you’re able to. Legal advice is, of course, dependent upon the specific circumstances of each situation and the law may vary from state to state. With all that technical stuff out of the way, Adam, would you like to introduce yourself and tell our listeners a little bit more about what you do at Good Dog?

Adam [1:45] Yeah! Thanks so much, Nicole. Again, my name is Adam, and I am one of the Good Dog Specialists here at Good Dog. Basically, the function of our team is to make sure that our breeders are set up for success. Any time you have questions or you need help with your account, we’re the ones who answer those texts, those emails, those calls that you put into us—to make sure you can get the most out of secure placements on Good Dog and to make sure that you’re supported in the best way possible. Super excited to go over this topic today, because it is one that we get reached out to a lot about. I’ve been at Good Dog for about a year now.

NE [2:21] It’s been the best year since you joined us! Thank you for joining me today. It’s fun to see you in another format. Many of our listeners will know that Adam and I host Facebook Lives together and Welcome Webinars, so it was very fitting that we started the podcast together for this month as well. I can kick things off, just talking a little bit about how you should think about educating buyers and guiding conversations around deposits, because as many breeders know, it’s just really important to have these transparent conversations with your buyers. You’re already getting to know so much about them and having so many conversations. Open conversations around deposits should be no exception to all of the work you’re doing already to get to know one another. Just to kick things off very generally, very basic: what is a deposit? It’s important to remember that many buyers, especially first-time puppy owners, are really starting from square one. That means they may not even be familiar with what a deposit means as it relates to a dog breeder’s program, especially ones that are non-refundable. On your Good Breeder profile, you can already add your deposit information, as well as individual puppy pricing information, so these two pieces of information, these two details, help set expectations with buyers on your pricing and your deposit policy—long before they even contact you or submit an application. 

Another thing that I think we see a lot from the buyer perspective  is questions about the cost of the deposit and what goes into that. I know it can be a little bit sensitive for some breeders, to feel like they need to justify the price of their dogs—which you should never feel. But we wanted to share some background and some language around talking about what actually goes into your deposit because, being at Good Dog for three years now almost, I’ve learned so much from breeders about what actually goes into the cost of their deposits, why they’re non-refundable. It’s really fascinating, and I think it’s really helpful to share that information with your buyers and pass it forward. In a puppy buyer search, a deposit can typically mean that buyers will pay breeders a $200-$500 deposit to reserve a puppy from an upcoming litter. That, of course, is just an approximation. The actual amount is going to vary by breeder. The amount that you require for your deposit is completely up to you and the needs of your program. Each breeder is going to have his or her own policy on deposits, but it’s important that the terms of the deposit be explained clearly, ideally in writing, at or prior to the time the deposit is paid. We would definitely encourage talking about these terms before the deposit is paid. Maybe not at the time, but beforehand. At Good Dog, this is something I really want to make clear to all of our listeners: at Good Dog, we honor the policies that a breeder and buyer agree to. So using Good Dog’s payment system also ensures that your deposit policy is presented to puppy buyers when they pay, automatically recording it for you and your buyer to refer back to in the future, and sending both parties a receipt for the deposit payment. It’s really, as we’ve said many times, a one-stop shop for you to not only have all of your records and transactions in one place, but really be able to refer back to them and know that they’re safe whenever you do need them. We do that through E-contract, which attaches a contract to your payment request that your buyer can electronically sign, send back to you, and it is securely stored in your Good Dog profile forever. That’s another reason why using payment on Good Dog to receive your deposit and puppy payments from buyers allows us to keep you protected. Unfortunately, the same does not apply if those transactions occur off of our platform. I did want to make mention of that, and the ways that we’re working to really streamline the payment request and agreement to the deposit policy—all in one place! 

As I mentioned, each breeder sets their individual deposit policies with buyers, especially around whether a deposit is refundable or non-refundable. You can indicate whether a deposit is refundable or non-refundable on your profile. There’s a link that will drop in our show notes for a little how-to video on how to upload your policies to your Good Breeder profile. Depending on the breed and the breeder, deposits may even be accepted many months in advance of the breeding. Let’s say you don’t breed as frequently. Maybe you’re a rare breeder. You need to make sure that your puppies are all locked in, so to speak, before you even have a litter on the ground. It’s really important for potential puppy owners that are contacting you to understand why breeders require deposits, and why those deposits are often non-refundable. So, in addition to understanding the specifics of each breeder’s deposit policy when they choose a breeder and breeding program, it’s really important to walk them through that policy as it applies to you. Being a responsible breeder, of course (no one listening to this needs me to say this, but I will reiterate it) requires careful planning, huge time commitment, and major financial investments. And non-refundable deposits especially support breeders in all of these things. As I mentioned earlier, I know this because I work at Good Dog. Breeders know this because you’re breeders. You’re the ones putting in all this work. But buyers don’t necessarily know this. It’s a really good opportunity to educate them, not only about why you require a non-refundable deposit, but just all of the work that you’re putting into your puppies. All breeders on our platform have so much to be proud of, from their health testing (which is costly), bringing puppies to their veterinary appointments (which is also costly), the list goes on and on. And the bills really rack up. These are all things that you’re of course doing because you care about your puppies and giving them the best starts possible. Show that off! Really help buyers understand all of the reasons why it’s so great to be working with a responsible breeder. It’s because you do all of these things. There are many ways you can do this on your Good Dog profile already, so you can talk about enrichment that you do, socialization, the health testing that you do for your breeding dogs. There are a lot of ways to really show off this information on your breeder profile, but also really have these conversations with buyers. I guarantee that they would love to hear it. The reason they want to work with responsible breeders on Good Dog is because they also care about these things. They just might not be necessarily as aware of it.

So it’s of the utmost importance to breeders, of course, that they place their puppies with new owners who are ready for the lifelong commitment of getting a puppy. That is not something that every single person can commit to, so it’s really important for breeders to be finding people that feel committed, that feel like the right fit. Finding and selecting and preparing these new owners takes a large amount of a breeder’s time and energy. I think sometimes buyers can think on a very individual level, because a puppy search from a buyer perspective is very individual. But breeders are doing this same thing for 7 or 8 buyers to find owners for all their available puppies. I think it’s really helpful to also put into perspective for buyers that you are doing this for multiple buyers at the same time, and it really is a time consuming process. One of the most difficult times for breeders, especially, to do all of this screening is around the same time as the birth of their puppies. Prior to the birth of their puppies, breeders are often on call. They’re waiting with and supporting mom. When the litter arrives, many breeders stay with the litters 24/7. I know so many breeders tell me that they sleep in the kennels and in the whelping boxes for days, and that they’re literally running on coffee and Red Bull. They’re exhausted. It’s a labor of love, but it is an exhausting process. They’re a second mom to the puppies. They’re a nurse to the mom that just gave birth. Puppies are also entirely dependent on their mom and the breeder. They can’t really hear or open their eyes. This neonatal period can be particularly anxiety inducing. Breeders are tracking the pups’ health, their weight—all these things that need to be monitored daily, if not hourly. In some cases, it’s not very uncommon for puppies to require feeding from the breeder, which is extra attention. All of these things are what you’re doing to juggle all these puppies, make sure they’re all safe, and eventually ready to go to their homes. 

With all that in mind, obviously it’s very demanding and costly to care for a litter, let alone worry about if your deposits are going to be disputed, if buyers aren’t going to understand what they’re paying for. These are all things that everyone listening to this knows that you do as a breeder, but share this with your buyers. Send them updates. Even say, “Hey, I’m going to be a little bit out of pocket for the next week or so now that the litter is here.” Even explaining far in advance of when the litter gets here and you’re in the process of requesting your deposit—explaining what you’re going to be doing over the next few weeks and why you have to have some of that payment now, as opposed to later. These are all things you should feel that you’re proud to share, comfortable to share, that buyers really want to know. Those are some of the reasons why deposits are important. Advance deposits also give new owners sufficient time to prepare for the commitment of getting a dog. Just thinking a little bit more from the buyer benefits of putting down a deposit: it gives them time to become educated and informed by figuring out what questions they’re going to need to ask you, make critical preparations for the arrival of this new puppy, find a local vet, get essentials for the new pup. It really puts the fire under them, so to speak, to really start doing all of these things to get their home ready for their new pup. Just as helpful as it is to breeders, it is really helpful to buyers to know that they put down this deposit, that they’ve given this sense of commitment. I think it registers in their heads, too: I have to start preparing just as much as the breeder does. This preparation time can be enormously valuable in really helping ensure a smooth transition for the pup to his or her new home. Also setting the puppy owner up for success. Really, everybody wins when there are these open conversations around deposits, why you need to have them. 

We did run some numbers a year or two ago. We talked to a bunch of breeders about expenses for a litter and how they can add up very quickly. We found that they can range anywhere from $8,000–$24,000. As I mentioned, that’s including things like health checks for breeding dogs, stud services, supplies, equipment, food, vitamins, veterinary care, registration documents—the list really goes on. These are things you want to keep your buyers updated on, not necessarily feeling any obligation to share the actual price and cost of what these things are costing you, but keeping them updated on all these things that you’re doing. Like I said, buyers don’t even know that this goes on behind the scenes a lot of the time. This is something we’re always trying to educate them more about. I think that really starts with having these individual conversations between buyer and breeder on what you’re doing as the breeder right now, are you bringing the puppies to their vet appointment, are you getting mom ready to give birth? All of these things are really great to just keep going, especially as deposit conversations are starting to happen. 

non-refundable deposits. I feel like that applies to deposits, generally, but I want to talk specifically about non-refundable deposits because I know that can be a concept that consumers aren’t really coming across in their day-to-day. This can be something that they might even be encountering for the first time. It’s really helpful to think of non-refundable deposits serving as a screening tool for breeders to use when they’re evaluating potential puppy buyers. Payment of non-refundable deposit indicates to the breeder that the buyer is serious. They’re not just window-shopping, putting their names down on a waitlist, or multiple waitlists for that matter. They have the intention of actually getting a puppy. Buyers who are willing to pay non-refundable deposits are typically buyers who believe they found the right breeder for them, and they’re committed to following through with purchasing a puppy. This means that non-refundable deposits protect breeders from a situation where a buyer backs out after a litter is born, and a breeder has to then dedicate some unexpected time and energy into finding new homes while caring for remaining pups. It can be very stressful. It can be scary for breeders who think all of the pups in their litter are committed to great homes, only to find out last-minute that someone has backed out, and they’re faced with some time-sensitive and unexpected demands. Non-refundable deposits for breeders are really a way to protect yourselves from this kind of stress and these unexpected costs. You’re spending a bit of extra time now scrambling for a buyer. It’s just a little bit of a cushion. These really reduce the risk of any of these unexpected stressors happening to the breeder, and it helps offset some unexpected expenses. 

Some things to remember if you want to say to your buyers, a very short and very easy way to understand: non-refundable deposits help breeders select forever and great homes for their puppies when they have the most time and energy to do so. It allows them to focus fully on caring for and raising their puppies. It allows them to know that their financial and time investment in their puppies and buyers will be compensated. And it helps them avoid scrambling to find homes for and raise unexpected puppies. These are not things you should feel shy or awkward about telling buyers why you require them. They’re coming to you for a service. You offer a service. I tell breeders all the time: “Think of yourselves as the business people that you are.” This is why your business runs the way it does. You should not feel shy at all to have these conversations, especially having them far in advance really prevents a lot of hurt down the line, which brings me to my next point. I think this might be one of my last before I turn it over to Adam. 

Encourage buyers to ask questions. Oftentimes, this is one of the most exciting periods of time in a buyer’s life, getting ready to bring home their new puppy. It can make you put blinders on. You’re so excited, as the buyer, to visualize your puppy. Maybe you know what mom and dad look like. Maybe you’ve already seen photos of the available puppies that you’re applying for. It can make it really hard to think a little rationally and ask questions because excitement takes over. Buyers might not even know what to ask when it comes to your deposit policy until they’re finding out the “hard way.” You as the breeder can help the buyer to ask more thoughtful questions about your deposit and all that it entails and really help the buyer understand what it means to put down a deposit with your program. I wanted to share some suggested questions to help lead your conversations with buyers. Many of these questions come from members of our community who use these in conversations with their own buyers and really use these questions to help set expectations for their program and how it works. I would encourage you, especially if you have some buyers who don’t seem like they have a lot of questions or just say everything sounds great—I would push them a little bit more and say, “Do you want to know if the deposit is refundable? Do you want to know if the deposit is going to be applied to the price of the puppy, or is it in addition to the purchase price? Do you want to know, if the deposit is refundable, under what circumstances is it refundable and are there exceptions or exclusions? Do you want to hear about those exceptions and exclusions? If the deposit is non-refundable, are there any instances when the deposit would be returned? Is the deposit transferable to a future litter if a puppy is not available? Is there a timeframe for how long a buyer must wait for a puppy to be born before having a deposit returned? Will the deposit be returned if the breeder or buyer decide the buyer is not the right match for a breeding program?” These are some basic-level questions that members of our community have had a lot of success asking their own buyers throughout their own screening processes. I’d really encourage you to ask a few of these, especially for those buyers who don't seem to have a lot to say. They don’t know the right questions to ask. It really can lead to great conversations, informative conversations, that protect both of you down the line. It never hurts to ask questions. That’s what I always say. But especially when it comes to deposits!

The last thing I want to touch on is something I have observed a lot in our community because, of course, dog breeders are breeding living things. When you are breeding living things, you have to come to expect the unexpected. That can be difficult for buyers who are really getting their hopes up about certain puppies, certain sex, certain colors. They have something very specific in mind. Puppies are living things. There is a lot of variation to what they can end up being. There’s a lot that can go not as you predicted. It’s really important to set expectations about the unexpected. Even though a buyer has paid a deposit, whether it be refundable or non-refundable, and is on a waiting list for one of your puppies in an upcoming litter, there’s no guarantee that a buyer will actually receive a puppy from that litter because a breeder is not going to be able to know with absolute certainty when a puppy is going to be available for any particular buyer. Like I said, just like with humans, it’s impossible to predict that one of your breeding dogs is going to become pregnant, have a successful pregnancy, how many puppies will be born. It’s impossible to know how many healthy puppies will be in a litter. Depending on the breed, it’s difficult for breeders to actually foresee the sex or coloring of the puppies. Buyers do have strong preferences around both of those, typically. Even with the best care, puppies are fragile. They can get sick. There’s just a lot of variables that can change things very quickly. Given these uncertainties, given the fact that we’re dealing with living things, because most puppy buyers have specific preferences in mind for a new puppy, breeders are unable to guarantee in advance how many applicants on their waitlist will receive puppies from a given litter. I know this uncertainty can be frustrating for puppy buyers. We’re always here to help you with these conversations with Good Dog buyers as well and support you in those. It can be frustrating if they have to wait longer than expected to take their new puppy home. It’s so important. I cannot stress this enough—and this is the note that I will end my spiel on—to ensure that buyers have realistic expectations when it comes to getting a new puppy. It’s incredibly important for them to understand exactly what a breeder’s deposit policy covers before deciding to make a commitment to work with a breeder. I leave you with that. Make sure that you are having these conversations about your deposit policy. Do not shy away from them. These conversations should be great. They shouldn’t be awkward. If you ever need help navigating these conversations, guiding buyers to ask the right questions, we’re always here to help you with that. Hopefully that was helpful for all of you. I’m going to pass things over to Adam, and he’s going to go through some best practices to keep in mind when you are putting together your contracts and having these conversations with buyers. Adam, I will let you take it away.

A [23:05] Thanks so much, Nicole. As far as best practices, I break this down into two sections: deposits and final contracts, for whenever the puppy goes home. With regard to deposits, especially with the deposit agreement, a lot of times it’s non-refundable. It is so important, as you mentioned, to set and reiterate your expectations of the buyer. One thing that you have mentioned is asking those questions. Having a list of frequently asked questions is a great way to make sure that you’re answering questions that the buyer may not know to ask. You don’t know what you don’t know, right? As a buyer, you’re looking at the breeder to be the authority on this process. You all are so great at being that authority. Having that extra preparation going into those conversations is really key because it helps to cover any blind spots that the buyer may have that could potentially set them up for let-down or confusion down the road. Those are two things I would mention at the top. 

One thing I always tell breeders is protect yourself with a deposit agreement. If you take nothing else from this podcast, it is: Have a deposit agreement! First and foremost. The second caveat that I bring up with that very quickly afterwards is don’t accept the funds until they have already signed the contract. Having a signed contract before you accept those funds is a great way to reduce the refunds you potentially have to issue if someone is confused or very quickly backs out because they read the contract and don’t agree to the terms. Easy way to avoid that. Setting up a time to go over the deposit agreement with buyers on a video or voice call is a great way to answer any questions and ensure understanding. Having that live chat time where you can really sit down with the buyer is so crucial. In a world where we spend so much time texting and messaging back and forth, while those are convenient and great ways to communicate, there is really something to be said about taking some time, setting it aside, to really sit down with your buyers, whether it be virtually or in person if they come to look at the litter ahead of time, to go over these agreements. It adds a personal touch to this process. Sometimes people do feel apprehensive to discuss a contract. The finer points of their contracts or their agreements. It’s a great way to break that up. 

Something else I would mention is reiterating the message on Good Dog (phone, text) the important points of that deposit agreement. Is it refundable, as Nicole mentioned? Is it transferable, as Nicole mentioned? What happens in a case of a buyer who misses their pick-up date and is unresponsive? That is a great situation to go ahead and highlight how you would handle that. Based on past experience, you want to formulate your policy from there, that’s great. Setting that expectation for buyers is really key as well, including go-home date of litter if available at the time of deposit. It’s another great way to set the expectation that this is the day you are coming to pick this puppy up. Again, making sure they don’t miss that pick-up day or be unresponsive when it’s close to time for the pup to go home. 

As far as a right to refund or transfer a deposit, be sure to highlight the circumstances under which you would permit the buyer to transfer the deposit to another litter. If that is all cases, that’s great. Most breeders offer that transfer of deposit. We recommend reviewing your state laws regarding refundable deposits, as those requirements would control. Most states allow sellers to formulate their own refund policies. However, there are some states with more strict guidelines. As a general rule, whenever you advertise your policy, I almost always tell breeders to mark it as non-refundable to set that expectation early, but be aware that in certain states (for example, California) do not allow for non-refundable deposits. Keep that in mind. We can put a link in the show notes to a really great resource that summarizes state laws regarding a buyer’s right to a refund. Be sure to note in your deposit agreement what state your deposit agreement terms are governed by. So you have the option to choose between the state that you reside in (which we recommend most of the time), the state in which the buyer resides, or the state in which the transaction occurs, so if you’re meeting halfway and that’s a different state, you can set that up. Also consider that if you were to have a legal dispute, you would want to engage an attorney that is licensed to practice law in the applicable state and you might need to travel to a court located in that state. If you choose a state that’s not your home state, that can cause some issues as far as the legal proceedings if it were to get to that stage. Highlighting the terms of puppy purchase in the agreement as well. That deposit is to help set up: this is the amount we’re taking for the non-refundable deposit, these are the terms of transferring, etc. But go ahead and say: the remainder of this balance is going to be due on this date. Set those expectations early. I think that letting buyers know as far as what their pick-up options are, if they need transportation, what their requirements and responsibilities are as far as the price of that—those are great things to mention in your deposit agreement as well. Just to give them the lay of the land as far as how the rest of this process is going to play out. 

We mentioned this, but ensure that your deposit policies are clearly stated on your Good Dog profile, in addition to the deposit agreement. That doesn’t mean you need to write a book on your account profile. As far as letting buyers know, some good language, for example, for a non-refundable deposit would be: “Deposits are non-refundable. However, buyers are offered the option to transfer their deposit to a future litter. For more information on terms and conditions, please refer to the breeder's deposit agreement.” That is really key there. You always want to refer them back to the agreement so if they have not seen it or have forgotten about it, maybe they lost the email, then they’re going to be able to reach out to you and say, “I need to go over these terms and make sure that I fall within them.” Those are some best practices as far as deposits go. 

As far as the final purchase of the puppy, the contract that binds once the pup goes home—always have a contract. It falls in line with that advice I gave about deposits. Have an agreement. For final go-home date, they should have already signed that agreement ahead of time. Do not let that be a surprise on pick-up day. Pick-up day should be the focus of excitement and making sure they’ve got everything they need to set up that puppy for success. It’s not the time to be negotiating or going over finer points of contracts. It’s just not as good of an experience for your buyer. Keep that in mind. Require that the buyer signs that contract before you receive those funds. Whenever you send an e-contract on Good Dog, the good news is that even before a buyer completes that payment request, they can go in and sign that e-contract, which is fantastic, so they’re not bound to complete that payment until they’ve signed and you’ve signed.

Setting up a time to go over the contract with buyers (voice, video call) is a great way to take time and make sure they understand the finer points about that final agreement. Spend time going over the health guarantee information. That is most often the sticking point that buyers walk away not understanding or having misconceptions about, from my experience. Taking time to explain this is what is covered by my health guarantee. This is not. That’s a great way to help clear up confusion.

In your contract, be sure to include specific information for that buyer’s puppy. Information like sex, the sire and dam of the litter, along with the registration numbers if applicable, date of birth, as well as puppy’s registration number and name. It should all be listed in the agreement. Make sure all that information is clearly stated. If you’re registering a puppy and registration fees are included in the price of the puppy, this should also be noted in your contract. If it is not, it needs to be noted as well, so buyers know if they would like that registration completed, in a situation where you’re not paying for it, they’ll own that burden of payment. Those are things to keep in mind. Reiterate the terms of the deposit agreement: how much, when is it due. Let people know: you paid this on this day. It’s really helpful. Emphasize wait time may be longer than expected, based on what a buyer wants. If a suitable puppy is not available in the litter, that’s also a great thing to include. Let’s say you have a pick order, but buyers pick at six weeks. All of the boys have been picked, and on the fifth pick, that person wants a boy but they’re all gone: letting them know how that situation would be handled is a great way to set them up for success. And make sure they’re not asking for their deposit back because the expectation wasn’t set early. 

Highlight whether the puppy is being sold with limited or full registration. That’s really key in addition to letting them know any penalties that will be assessed for breaking limited registration agreements. Will the dog have to be returned? Is a fee charged per unauthorized litter? I would encourage you all to spend time. Most buyers on Good Dog are just searching for limited registration, pet-only homes. Generally speaking, when you price your dogs on Good Dog, I don’t think including registration pricing in with that is necessary. As far as going over that agreement and letting them know what they are signing up for, as far as breeding rights, is always incredibly helpful. For a lot of the limited registration agreements that I’ve seen that are successful, there is a clause that requires proof of spay or neuter by a certain age or date for the dog. That’s a great idea, to make sure that that pup is not going to be bred later. Keep that in mind as a way to safeguard yourself. 

When including a health guarantee, be specific about what is covered in the short term and long term. I know we talked about health guarantees, but first and foremost, include a clause that requires a puppy be examined by a veterinarian within a reasonable amount of time from buyers assuming ownership. A good rule of thumb here is usually within 72 hours of the buyer taking ownership of the puppy. Go ahead and take the extra step of highlighting how long the buyers have to report a puppy that may have some sort of health issue or some consideration that the vet appreciates when they examine them. A good rule of thumb is letting you know within 48 hours of that vet check if there was anything you’d like to discuss or report back to the breeder. Giving them a time window really cuts down on weeks or months later, getting outreach from a buyer who says this or that happened when we brought them home, without a ton of recourse on your end to verify that. Giving them time frames to report these issues—a great way to safeguard yourself. For short and long term guarantees, list the conditions that are not covered by the guarantee as well. As great as it is to list what is included in your guarantee, make sure you put those exclusions. For short term guarantees, common exclusions are any illness brought on by mistreatment or neglect on the part of the buyer, any health issues brought on by the transportation of the puppy from breeder to buyer, and any minor illnesses like upper respiratory infections, allergic reactions, stress or diarrhea, internal or external parasites, or contagious viruses like parvo. Those are really common exclusions that you want to highlight, so buyers are not left in the dark or this ambiguous place of what is covered in the short term guarantee. For long term guarantees, the length that a health guarantee is offered will vary by breed. Most often, we see this vary wildly depending on the breed. Be conscious of the steps you took to decrease the risk of hereditary conditions. Also, factor in the fact that there are some conditions for which there are no tests. Or that are highly prevalent for your breed and are therefore very difficult to provide a warranty against. For congenital conditions, you should only offer guarantees for conditions you health test against. That is a great rule of thumb. Whenever a puppy is returned based on some sort of health guarantee claim, our recommended approach is to allow the purchaser to keep the puppy and receive a reimbursement for treatment costs up to but not exceeding the purchase amount of the puppy. If you do decide to offer a return or refund option to buyers, you can also offer a refund of the purchase price or a puppy from your next litter for equal or greater value as an alternative. If offering a refund or return option—be specific on who bears the responsibility for costs like transportation, whether it’s solely up to the buyer or you split it 50/50 with the buyer. Going over those key points is really helpful. Be conscious of pet purchase protection laws (lemon laws) in your state. Those control over any return or refund language in your agreement. Check out a breakdown of those state laws by following a link we’ll put in the show notes. Again, always helpful to keep those things in mind.

I would include a clause that indicates the governing law state that controls this agreement. You have the option of choosing the state you reside in, the state in which the buyer resides in, or the state in which the transaction occurs. Remember that, in the event of a legal dispute, you may need to travel to whatever state this contract is governed by. Keep that in mind as far as logistics. When advertising your health agreement or guarantee on your Good Dog profile, be succinct and just refer them to your agreement. A good example of health guarantee language for your Good Dog profile is: Both short and long term health guarantees are provided for buyers. For details on terms and exclusions, please refer to puppy purchase agreement. That way, it opens up that conversation for you to sit down one-on-one and talk through any questions they may have. A lot of times legalese and reading these contracts can go over people’s heads. That’s understandable. As the business owner, I think taking that time to safeguard yourself and give that buyer extra reassurance that they feel confident moving forward with the knowledge of what they’re agreeing to is a great way to do business, a great way to leave a wonderful impression with your buyers, and to ensure that you have fewer refunds, fewer disputes. All those things go hand-in-hand with great contract practices and great deposit agreement practices. 

NE [39:07] I am so glad I got to ask you to join me on this podcast. You are just a wealth of information. That was amazing! Thank you for sharing all of that!

A [39:15] Happy to do it. I would also take time to say, Nicole, if you have any questions about how to add a contract to your Good Dog account so people can easily sign them through e-contracts or how to access the sample contracts that we offer on the Good Breeder Center which are great roadmaps for getting started if you’re a new breeder and don’t have an agreement that you’ve used prior to this podcast, feel free to reach out to the Good Dog specialist team. We are always here, 7 days a week, to make sure those resources are available to you. We can help you navigate the waters as far as getting that added to your profile. 

NE [39:54] I think that’s a perfect note to end things on because what I want to reiterate to all of our listeners is that we’re here to help you. The reason we put together this episode, wanted to cover this topic, offer things like e-contracts and sample non-refundable contracts, is to make you feel like you’re not alone in this. You’re not alone in guiding these conversations with buyers, protecting yourselves, protecting your programs. We at Good Dog are truly here to help you every step of the way through this process. Every step of the placement process, but specifically things that are a little trickier to navigate like non-refundable deposits. We are always here to support you. Like Adam said, please reach out to us if there is anything we can ever help you with. That’s all we’ve got for you today. Thank you all so much for taking the time to tune into this week’s episode. I believe the better educated we are about deposits, the more we talk about them with our buyers, the better we can work together to have happier breeders, happier buyers, and (of course) happier puppies, which is what it is all about. Thank you again for tuning in, and we’ll see you back here on August 9 for our next episode. Thank you everyone!