I have a "non refundable deposit". However, if someone was truly not happy with the puppy they picked out, then I would absolutely give the deposit back. The non refundable part came about because of a certain situation.
That being said, if you are unhappy with that puppy talk to the breeder. I have concerns about the dogs that they are breeding because they are so far off standard. Not that they can't be caring people, their dogs just aren't good breeding material. That's all I'm going to say about that.