Hi Andy,
May I ask why you are considering implementing a cancellation policy? what has happened to trigger this thought?
I have a 100% cancellation policy on my price list and clients are reminded at time of booking. I have never charged anyone to date. If their reason is genuine and the client reschedules then I waive the fee. Other times, after discussion with the client, somehow miraculously they can make the appointment
I also tell them that if I can fill their appointment slot then no fee will be charged.
I have also had NO SHOWS (new clients), however, none of them have been back. I keep records of these people.
Depending on the booking, I make courtesy calls to remind the client of their appointment and to say "look forward to seeing you". I have many clients with email on their mobile phone so I email them instead.
I think cancellation charges are best dealt with on a case by case scenario as we don't want to piss off any clients at the end of the day. When you form a good relationship with your client they will respect that you have a business to run and turn up to their appointment or reschedule with ample notice.
Andy - In my two previous employments, I worked for busy salons in central London and they both implemented cancellation polices and one even took deposits for first time clients and sometimes deposits for treatments over an hour at busy timeslots. Some clients would pay the cancellation fee over the phone, some would pay when they next had their treatment. Either way, you need to bare in mind the "stress" this puts on your reception team as there is always a client who does not want to pay and want to speak to the Manager. Then there is also the blanket rule debate. Some clients are friends, word will get out if you charge one and not the other.
Final note, and I may need to correct myself on this.... taking deposits over the phone ie, card not present transactions is not a guaranteed payment as this can be disputed by the client.