How do I handle costume deposits at my dance studio when I sell?

Start with an accurate record. For each family, note the child’s class, the costume, the amount received, any balance owing and the supplier order that matches it. Reconcile the total with your bank so you know the money is accounted for. Gaps are easier to fix before a buyer finds them. If some costumes are already ordered and paid for by the studio, make sure the supplier invoices are on the list as well.

Then decide how the work and money will move. One approach is that you deliver orders already placed; another is that the buyer takes over and receives the deposit funds. Whichever you choose, put it in writing and make sure supplier orders are not left stranded. Your lawyer and accountant can help you set the terms. Be ready for questions from parents about refunds, and decide in advance who will answer them.

Finally, tell families clearly. A short, friendly note explaining who will handle their costume, when it will arrive and whom to contact reduces worry. Time the message with your buyer, and consider timing the sale around the recital season, so costumes are not caught in the middle of a transition. A calm, clear process now protects the studio’s reputation, which is a large part of what you are selling.

Key takeaways

• Keep a family-by-family list with amounts, orders and delivery dates.
• Agree in writing who delivers and who holds the funds.
• Tell families early what happens to their costume.