Deposit and Cancellation Policies made easy
Implementing and enforcing Deposit and cancellation Policies a common thread in many hairdresser groups
The main Issues with Deposits or Cancellations in a hairdressing business are:
Time-consuming
Not consistent
Customer complaints
Its no wonder that most feel that its easier to “not bother” rather than deal with these problems
But, Why should businesses suffer financially from the impacts of no-shows or last-minute cancellations? other industries wouldn’t, so why do hairdressers?
It all boils down to the simple gap in knowledge!
Something which salon owners or freelance hairdressers should be taught….and regularly don’t know:
The Do’s and Don’t with cancellations!
Here are some pointers to get you started:
When somebody books an appointment in a hair or beauty business they are entering into a contract to exchange a sum of money for a hair or beauty service.
At the time of entering the contract it is up to the consumer to understand the terms and conditions of the contract.
So as salon owners we should be displaying he policy in an Evergreen/accessible place.
Not in Instagram highlights or on a post a few years ago!
Think of somewhere, where if the customer requested to see the policy, it would be accessible. Website? Salon Reception Area?
If the customer is booking online; you can make the policy available using the online system.
This is probably the easiest route, but we know that telephone, rebooking and walk in requests for appointments will slip through the net!
So for all of the other bookings, you need to have the policy displayed in evergreen and accessible places.
Next issue: deposits!
Regardless of if you take a deposit or not, you are still ok to charge a cancellation fee. Of course its more difficult to enforce this if you haven’t taken a deposit.
You can take as much or a little deposit as you like but there is something very important to remember:
You may not be able to keep the despot if the customer cancels!
Under the Consumer Rights Act the business must make a reasonable attempt to sell the appointment so if you have been given notice of the cancellation, even if its within the window of time for your cancellation procedure to be enforced, you should still attempt to re sell the appointment at the same price (no discount). Cancellation list? Advertise to VIP group?
If you can resell the appointment then legally you can’t keep the deposit or charge a cancellation fee, you can keep it on account for the next visit, if the customer agrees.
If you don’t resell the appointment then you are able to keep some or all of the deposit OR charge a cancellation fee.
How much?
If you don’t know your numbers; This is the tricky part!
You must be able to provide a breakdown of the costs (if challenged) and show that the fee covers the business costs.
Can include: operational costs and profit.
So this fee will vary from business to business.
Keep in mind that if you take a 100% deposit or a 50% deposit you may not be able to keep the entire amount.
So here are the top tips when enforcing your cancellation and deposit policy:
Know your numbers for the time when you get challenged about charging a cancellation fee.
Have your policy accessible and available in evergreen places - social media is not the place for your cancellation or deposit policy! Need help with this? join our free Facebook group for free marketing support
Use automation to enforce your policy and ensure your customers are receiving a consistent and professional service. These will also save lots and lots of time and problems!
“Automating your policies” got you feeling stressed? Let us help you with your digital journey, we deliver in person and online education which can solve these automation nightmares quickly!
Book a free salon growth strategy call with our team to discover how HEIR Education can help!