If you are new to your business, many things that come your way will be trial and error. I encourage you to try new and different things, both in your facials as well as in your business in general. As far as implementing a cancellation policy I do think, as a seasoned business owner, that it would be an error to not put one in place.
By having a firm cancellation policy, you position yourself as a serious manager, not someone who doesn’t really care about the business side of your business. I’m not saying that if you decide to not put a cancel policy in place that you are not a good business person. What I am saying—from experience—is that without a policy for those clients who cancel on you without notice, you stand to loose a lot of money. Period.
Everyone has a different concept of time. In life, I am the type who is always early for appointments. That is no doubt why I am always at my office well ahead of my client’s scheduled appointment time. I don’t want to come off as unprofessional and not be there when she walks in the door.Some people are chronically late for appointments. When it comes to your clients, this can be a problem. Many times a client’s concept of time also translates to her either no-showing an appointment or calling at the last minute to cancel.
Here are a few examples of who I will charge and who I won’t charged based on their reason for missing or last-minute cancelling a scheduled appointment:
Excusable (obviously!):
- Their child is sick and they have to stay home.
- Their babysitter cancelled at the last minute on them. If this happens more than a few times with the same client, I will inform them that the next time (probably the 3rd time) this happens, I will charge them without 24 hours notice of cancellation.
- They were involved in an accident. Believe it or not, I had a (very conscientious) client call me from a hospital bed after she was in a car accident. Wow! I don’t think I would have had the presence of mind to do the same thing. Kudos to her!
- The client is sick. I always praise any and all clients for cancelling and not coming in sick. If you’ve read my previous posts, I abhor a client who doesn’t think well enough of my health (and her own) and comes in to get a facial with a fever or some other contagious illness.
- I got called into an unscheduled meeting at work. Again, I will accept this once or twice, but if it happens more than a few times I will inform the client they’ll have to pay the next time it happens.
Not acceptable:
- My mother is in town and we are still shopping. (I have had this one happen!)
- I forgot. (I have heard this more than once—and I confirmed the day before!)
- I’m too busy. (This is usually someone who doesn’t understand I am running a business, not enjoying a hobby.)
As I’ve written about in other articles, it is crucially important to write down everything on a given client’s chart. Just as if the client were coming in for her treatment, I write the date of the appointment on her chart. Then instead of commenting on her skin’s condition and what I did in the facial that day, I’ll write that either she no-showed (always written in red ink) or that she cancelled with 2 hours notice (or whatever time frame) and the reason she gave for the cancellation. I also write if I charged her or not. For instance, if it was a late meeting at work, the first one or two times I will not charge. Having that detailed information on her chart gives me easy access to know whether to charge her next time or not.
I want to stress that I would never charge a client without letting them know first. With new clients, over the phone, I explain my cancellation policy: If you need to cancel, please give me at least 24 hours notice to avoid being charged for the treatment. If I have them on the phone during their cancellation and it is a flimsy excuse that I do charge for, I will tell them right then and there that I am going to have to charge for this cancellation. Some put up a fight, others actually offer to pay without me saying anything. (These are the people who honor another person’s time.)
If the client balks at your charging them and you want to keep them as a client, tell them you’ll either let this one slide or charge them 50% of the appointment fee this time, but the next time it will be full appointment cost. Charging for cancellations will likely give you one of two results, depending on the client.
- Result one: you will never see or hear from that client again.
- Result two: the client gains new respect for you and your business and either never cancels at the last minute again, or if she does she is well aware that she will be charged for it and doesn’t give a fight to the fee.
I have kept many clients with second chances, but these were clients I wanted to keep. And I do have some clients who I will give carte blanche to—they are important clients to my business and for these few I will tend to forgive any issues that may come up with scheduling. These particular clients are my “best” clients and I do not want to lose them. (All clients are important to the continuation of your business, but you will no doubt have a few who are 100% regular and who buy a lot of products. Fiscally, these are more important than someone who comes in once in a while or once a year.)
Sometimes being in this position allows you to let a client go. For more on that subject, see:
- Letting go of clients
- The Importance of a Cancellation List (this will give you information on what to do if and when you do get cancellations—especially at the last minute)
- Website ideas: My Cancellation Policy
