This time the schedule / communication was our fault. We apologized and offered to give the student an additional lesson for free and they were still unsatisfied and just wanted a refund for the amount unused.
In this situation, I`d definitely give a refund.
I`d also put together written policies on what is refundable and what is not -- something that your customers can sign upon ordering your services. Perhaps a non-refundable retainer fee for your prep work, and require customers give X days notice if cancellation is needed, otherwise no refund.
Also, keep in mind for the future, if a client is still willing to work with you, you may offer credits to their account or the opportunity to reschedule for no additional charge.
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