It’s essential for any service business to have a cancellation policy in place. For salons and spas, the practice is especially helpful to decrease the number of costly late cancellations and no-shows.
To help get you started, here are the steps to create, implement, and enforce a cancellation policy in your salon or spa:
1. Create a Cancellation Policy
Be very clear about how your salon’s policy works:
- Clarify what constitutes a cancellation versus a no-show
- Explain when, how, and why a deposit is taken and/or their on-file credit card will be charged
- Outline how deposits are applied to current or future services
- State at what point a client would lose their deposit and/or their credit card would be charged
- Set concise timelines and percentages, such as:
- For no-shows, X% of the scheduled service fees will be charged.
- For a cancellation less than xx-hours in advance of the scheduled service, x% of the service fee and 100% of any special order expenses will be charged.
- For a cancellation more than x-hours in advance of the scheduled service, x% of the service fee and 100% of any special order expenses will be charged.
Note: Do your research to confirm what percentage maximum you can charge in your state for a cancellation or no-show. For example, some states do not allow businesses to charge the full price for services not rendered but can charge a percentage of the service or a set fee for cancellations and no-shows.
2. Implement Your Cancellation Policy
- Post your policy on your website and social media channels
- Display your policy or a link to it in your reception area
- Add your policy or link to it on your confirmation emails and emailed receipts
- Add a link to your policy in the footer of your emails and newsletters
3. Have the Right System in Place
- Set the percentage(s) for cancellations and no-shows
- Using integrated payment processing, set up a means by which your team can add credit cards on file for existing clients
- Implement a paywall to your booking process, both in-house and online
- Train your staff about the cancellation policy and how to use it – consider arming them with a straightforward statement they can use when addressing their clients
4. Enforce Your Cancellation Policy
- Apply a process for all new clients for both in-salon and online scheduling
- Introduce your policy to all existing clients and collect payment information
When you take deposits and/or require a credit card on file to book a service, clients will be more respectful of your time and less likely to skip out on their appointments. And, as a result, you should see a significant drop in cancellations and no-shows.
If you are ready to start taking deposits and/or using the card-on-file feature, set your salon up for success by using Rosy Salon Software’s integrated payment processing, RosyPay. Deposits are only in Rosy for RosyPay customers. Not a Rosy user yet? Begin your free 30-day trial today.