Cancellation fees - do we have a leg to stand on?

[EMMA AT ELITE]

Hi All,

I state in my leaflets and on my website;
Cancellation Policy;
Unfortunately due to a number of no shows & cancellations affecting my business, a minumum of 24 hours notice is required to cancel/ postpone or a 50% cancellation fee will apply.
A 50% non - refundable deposit is required on all treatments over £20.

I just wondered though as therapists if a client wont/ dont pay their cancellation fee, we dont really have a leg to stand on do we?
The client dont legally have to pay the fee do they - is it just a good will gesture to pay this on the clients behalf!

Has anyone had problems getting cancellation fees out of clients?

Love Emma x:hug:x

 

[Verve Designs]

Hiya- I think trying to get a cancellation fee after the event is going to be tricky- both legally and logistically. Legally you do have a leg to stand on..but, realistically, would you take someone to court with something so small? Which is what they're also relying on.

I'd stick to non-refundable deposits personally- on all three sides of my (very different) businesses i'm suffering at the moment from the same things (and speaking to other people they're having the same...time of the year??), but I've quickly learned that it's the price you have to pay- and trying to chase people up and deal with it, is time you could be spending on the good clients.

 

[tanninglass]

in my view the way to go is this:

if a session/treatment is due to last over 45mins or is worth more than £30 then a non-refundable deposit is required of at least £10 preferably 50% of the total amount... though if this is £100 it is unlikely they will pay 50% ... this tends to clear up most mess and covers at least some of the costs incurred ... then you just hope if they cancel or miss the appointment someone else walks through the door... so far its working quite well.

 

[WAX inc]

hi. i insist they must call to cancel with as much notice possible. if they dont show i put a note on there name on my record that they must pay in full in advance befor any more bookings will be made. im actually gratefull when they bother to cancel as so many just dont bother to turn up. Spray tan clients are terrible for this. i went to work on my day off for one customer who didnt show last sat, didnt think she would forget as she had been in for her waxing the day befor .. its so rude but i think its unavoidable and something we just have to put up with unfortunately.

 

[kylieb]

I'd say not if they havent actually signed anything and even if they did it will cost you money to get that money back.
I dont believe in cancellation fees as personally I just wouldnt go back. Some people can be genuine and not be able to make their appointment for a good reason and may not be able to let you know.
I work on 3 strikes. If my client doesnt turn up or is not in for their appointment then they get 3 chances. On the 4th time of them ringing I will politely say that I need payment in full for this treatment due to 3 times of them not turning up. Ive only ever had to do this twice and one client I just told that I wouldnt be doing her treatments any more x

 

[jes]

I agree with everything said by Kylieb in the above post. The only thing I do is different is only give them 2 chances before asking for payment in full before making another appointment.

I just can't see the point of threatening customers and potential customers with fines as they'll just go to a salon which doesn't.

 

[lublu]

After having whole days wiped clean because of no shows and cancellationswe have canc policy in our salon, 50% if you do not give 24hrs notice. We take bank card no and it is stored on a password protected pos system.
we have had this in place for over two years and only a handful of people have objected. our cancellation rate is virtually zero, in truth we rarely have to enforce it and take the 50%. If someone has special circumstances i would not charge them - sometimes it is unavoidable
I took legal advice before introducing this system and it is on all the cons cards.
When we book people in we always explain our policy and a notice is clearly displayed at reception
People that are not comfortable leaving card details can pay 50% in advance
what can i say but it works for us

 

[wowbb]

After having whole days wiped clean because of no shows and cancellationswe have canc policy in our salon, 50% if you do not give 24hrs notice. We take bank card no and it is stored on a password protected pos system.
we have had this in place for over two years and only a handful of people have objected. our cancellation rate is virtually zero, in truth we rarely have to enforce it and take the 50%. If someone has special circumstances i would not charge them - sometimes it is unavoidable
I took legal advice before introducing this system and it is on all the cons cards.
When we book people in we always explain our policy and a notice is clearly displayed at reception
People that are not comfortable leaving card details can pay 50% in advance
what can i say but it works for us

I think this is a good point and i think a lot of clients should respect more that you are keeping the slot for them and that you might have to cancel other customers to then be left with an empty day is very frustrating and also costing you money!

I think certainly for new customers i would always take a deposit and / or depending on the treatment and time involved ask for full payment up front, whereas if you have regular clients you know that they will come and pay but i can also see that for a bigger salon it might be easier to treat all clients the same way to avoid confusion for the staff!

 

[EMMA AT ELITE]

Thanks for all your replies, some really interesting points, & views made!
I am not very good with asking for non-refundable deposits & cancellations fees, however I am going to try & ask for non-reundable deposits mostly on new clients or those that tend to cancel last minute!
x:hug:x