Cancellations, no-shows, and deposit policies for salons: how, why, and when to use them
Note: This post is sponsored by Mangomint, next-generation salon and spa software
I know you feel it.
No matter your role in the beauty business - whether you’re a salon owner, booth renter, private practice esthetician, or work-from-home hairstylist - you’re pushed, pressured (and sometimes plagued) by that one thing always nagging at you in the back of your mind:
Keeping all of your clients happy, all the time.
We’re people pleasers; that’s often what’s drawn us to this business.
We love to make people feel beautiful, cared for, and looked after.
But we’re also business owners, which means that we have to face up to some of the tougher choices in running a profitable and sustainable business.
Touchy subjects like cancellation and no-show policies might not come naturally to you, but they’re vital when it comes to keeping your doors open and the money coming in.
Thankfully, salon software and systems exist to make these awkward encounters much easier to handle, because they can be presented as digital agreements that your clients can ‘Click to Agree’ with.
But that doesn’t make having conversations about enforcing them any easier when the time comes.
Today, we’ll learn from Marchelle McKeirnan, VP of Sales at Mangomint about how to navigate awkward conversations about policies and procedures with clients.
Mangomint is next-generation salon & spa software that makes setting up policies and keeping your business professional so easy. To learn more and sign up, check out Mangomint Salon and Spa Software here.
Marchelle knows the beauty space really well, having owned and operated a salon for many years before diving into salon software and systems at Mangomint.
While she loved her time behind the chair, she always felt like there was something else out there for her.
After giving birth to her son, she returned to work behind the chair, but she started to look for other opportunities to escape the salon and move into something different.
She recognized that in order to be able to step away from behind the chair and start working on a new aspect of her career, she needed effective systems, automation, and software in place so that she could move on without worrying about how the salon was operating.
In her search for good software to help her achieve her goal, she connected with and built a relationship with the Head of Sales of Mangomint at the time (who is now the CEO of the company.) She was eventually brought on to the team at Mangomint because of her direct experience in the industry.
Learning and growing at Mangomint has affirmed for Marchelle how crucially important systems and software are for helping beauty business owners keep things running smoothly while also keeping clients happy, informed, and pampered.
If you don’t have a cancellation policy in place yet and need some guidance, or you do but you’re confident about enforcing it, today’s video and blog post were made for you.
*Editor’s note: This is Part 1 of a larger 2-part conversation with Marchelle around communication with clients. Stay tuned for next week’s continued conversation, where Marchelle shares her take on setting firm boundaries around your time and communication methods with clients!*
Why are some conversations with salon clients so uncomfortable to have?
While we can all agree that having conversations enforcing cancel/no-show policies and saying “no” to clients when you need a break is uncomfortable, we often have different reasons behind why it’s so uncomfy.
Sometimes you’re afraid that a client will leave you a bad review, or stop booking appointments at all. Sometimes you suffer from imposter syndrome and think, “Who am I to take myself so seriously that I need to charge someone for missing their appointment?” And sometimes, you’re just not very practiced at setting and enforcing boundaries for yourself.
I asked Marchelle what she thought about why setting boundaries and enforcing boundaries is so tough, and she had some great insights to share.
“[There are] so many different types of personalities [and] so many different types of people…for some of us, those conversations just never get easier. I have never had a fear of speaking on a stage, but it still took me a lot of time, training, and effort to become good at speaking in front of a group. So it's not to say that a shy person can't do this, but it's all about your preparation. And it's all about doing the hard work of having the policy in place, having the understanding of the ‘why’.”
“I always like to look at it from the [perspective of the] shyest, most introverted person in the room…if they know why they're setting this policy because of what it's protecting [for them], doing that hard work at the beginning really helps you to understand what that needs to look like - and what the end resolution always needs to be for you.”
Marchelle points out that it’s best to remember why you have policies and procedures in place: it comes down to protecting your time and the value of your skills.
Practice makes perfect, she says, and it’s important to always remember and affirm for your clients, it’s nothing personal. You’re simply sticking to the policies and your boundaries because that’s what it takes to run and maintain a successful salon.
Salon Cancellation Policies: How and why to have them
Marchelle stands behind “a strong and strict” cancellation policy at all times.
At her former salon in California, they enforced a cancellation policy that would charge no-shows a heavy cancellation fee, 100% of the time - no acceptions.
But she knows that this type of policy can come across as a little heavy-handed, so she explains that there’s a delicate way to inform and enforce a policy like hers.
“It really is about how you deliver [the cancellation notice.] I don't believe in posting signs all over your salon about it. This is my personal opinion, [but I think it] can get a little tacky. But I do think communicating it and having it set up [that clients] have to acknowledge it at some point [is important.]”
Mangomint’s salon management software comes with built-in systems and automation for informing about and enforcing cancellation policies, and Marchelle explains how easy that makes it for the salon owner:
“In Mangomint, [agreeing to the policy] looks like an actual toggle that [clients] have to select in online booking. They actually have to select, with their own hand, a toggle that says, ‘I agree to this policy.’”
How much should I charge for a cancellation or no-show?
Salon management software like Mangomint will include pre-constructed cancellation and no-show policies that you can customize to your salon’s needs.
But if it’s not in the budget to hire a writer or buy salon software, you can create policies on your own that reflect your values and the cost of doing business.
When it comes time to decide how much to charge for cancellations or no-shows, here are a few things to consider:
How many hours did you or your stylist lose pay because of the cancellation?
How much did the products cost you for the canceled appointment?
Do you want to create an atmosphere of ease and ‘going with the flow’, or would you like your clients to take you very seriously?
That last one, Marchelle points out, has a lot to do with the culture you’re creating in your salon or as a solo beauty professional.
“When I first started my career, I specialized [in] haircuts only. But I remember watching the colorists who would have a color makeover [booked] that would ‘no show’ and that would just kill a four, four and a half, or a five-hour chunk of their day.”
At the time there wasn't software that held cards on file, so there was no possible repercussion.”
“But I have also seen really successful salons have no cancellation policy and that's part of their culture. [They operate] like, ‘We're not gonna hold your card on file. We're not gonna hold you to it, but we're just going to go so heavy in the direction of like getting people booked and not worrying about [cancellation policies]. For those people, if that works, I think that it just has to fit into your culture.”
So how much should you charge for a late cancellation or a no-show? Marchelle says that considering the cost of materials and wages should be a big factor in setting the rate.
“If you're the type of salon doing massive color changes [and] huge expensive appointments - especially if you're doing extensions where you have to order sometimes thousands of dollars worth of supplies - your cancellation policy should reflect that.”
“[At my salon], I kept it really simple: up until 24 hours before the appointment, if you let us know, it would be a 50% charge. [If you cancel after that] or no-show, it was a hundred percent charge. It was very simple, very straightforward.”
How to enforce cancellation and no-show policies in a gentle but firm way
If you have a newly created cancellation or no-show policy, you might be sweating bullets thinking about the day you’ll have to enforce it.
You don’t want to ruffle feathers or lose a client, but you also want to be true to yourself, honor your own time, and build a sustainable, respectable business as a beauty professional.
Marchelle’s advice for keeping your cool?
Reflect the fact that you care about your relationship with the client, even while you have to let them know they’ll be charged for canceling.
“I personally always reached out again [after the cancellation.] That was just part of my culture. I sent them a really nice note: ‘Hey, just wanna make sure everything's okay!’ Because we don't know what's going on. Something terrible might have happened. So I think it's important to reiterate the policy and just send them a little note, ‘You will be charged for this - [but] if I'm missing anything, please let me know.’”
When should I take a deposit for booked services?
Deposits are another way that you can protect your time and the value of your services - but if you’ve never taken them, you might be wondering how and when to establish a deposits policy.
Taking a deposit for lengthy or high-ticket services can help ensure that a client will be more invested in showing up for their appointment.
But, Marchelle points out, it’s important to consider what you plan to do with that deposit, should a client cancel the appointment. Sometimes, taking a deposit can be more trouble than it’s worth.
“What I don't like about a deposit is [the idea that] there's $50 towards my $300 color appointment that is being applied to the $300 color appointment. And let’s say I need to cancel the appointment outside of the policy window. Now what happens? The business owner has to actually decide what they do with that. Are deposits refundable or not? Do deposits move with the appointment [date] or not? What is the deposit actually for? Is it for observing time on the calendar, or is it a portion of the payment towards the service that they have not rendered?”
And then there’s the problem of a deposit dispute, if it comes to that. Seeing as banks will most often side with their clients (especially if a service was never rendered), you might be upsetting a client (which, as we agreed at the very beginning, none of us wants to do!) and losing money at the same time.
Use your best judgement when it comes to deposits, but consider that it may not be the best way to establish strong boundaries and protect your time and resources.
Ultimately, Marchelle says, you want to develop a strong, trusting, and respectful relationship with all clients. That means having strong boundaries, a mutually beneficial trade of time and money for services, and a bustling salon full of happy customers.
Plus, when you set up those boundaries, you end up attracting your ideal clients - the type who respect you and your time.
“[And] when you're building the right clientele, you're attracting the right people,” says Marchelle.
“Those are people that are gonna respect your policies. So just make sure your policies are in alignment with who you are wanting to serve or who you are serving.”
Next week's blog post will continue my conversation with Marchelle, where we'll discuss setting boundaries around your time and communication with clients.
