Needing ideas on how to change wedding reception venue

FH and I previously booked what we thought was "the place" to have our reception. However, we have decided to go back to our gut instinct and have a Sydney Harbour view reception by the water. We are really scared about telling the place we originally booked as they're so nice and were really attentive to us (we wish we could take their service with us!!). We know when we paid our $1000 deposit they said it's non refundable, so we're also a bit disappointed at that but it's my fault for rushing into this.
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Bermuda pet