Expert Advice: Are cancellations wrecking your business?

In the hair and beauty industry, no-shows and last-minute cancellations can wreak havoc on your schedule and your bottom line. Addressing this issue effectively requires a proactive approach and firm policies. 

Recently, I discussed this topic on my podcast, The Life of KG, and received an overwhelming response. Here are some strategies to help minimise cancellations and protect your business.

Many salons operate with a 24-hour cancellation policy but extending this to 48 hours can make a huge difference. This extra day gives you more time to fill the white space and arrange for necessary preparations, such as patch tests. 

If you don't already have a cancellation policy, it's crucial to implement one immediately. You can't hold clients accountable for cancellations if there's no policy in place.

Consistency is key 

Having a policy is just the first step, enforcing it consistently is what truly matters. Be clear and precise in your wording, and ensure your team understands when to enforce the policy. 

Ideally, the policy should apply to all cancellations except in genuine emergencies. This approach not only protects your business but also sets clear expectations for your clients. 

Remember, you're running a business and you need to treat your income seriously. Clients will respect your business more if you do.

Implement a deposit system

Taking deposits is not a new concept but, surprisingly, many salons still don't do it. Deposits can significantly reduce the number of cancellations. 

By requiring a deposit that covers your cancellation fee, you ensure that you're compensated even if a client cancels. 

Most booking software makes this process simple and automated, removing the burden from you and your team. Additionally, deposits can be collected over the phone, ensuring every appointment is secured financially. 

If a client cancels, you still have their deposit and if you fill the slot, you come out ahead.

Educate your clients

Clients often don't realise the financial impact of cancellations on your business. Use social media and other platforms to educate them. 

For instance, on my Instagram page @kg_katiegodfrey, I've shared a breakdown of the potential financial losses from daily, monthly and yearly cancellations. Sharing this information professionally can help clients understand why your policies are necessary. 

Running a successful hair or beauty salon means balancing excellent client service with firm business practices. By extending your cancellation notice period, implementing a deposit system and consistently enforcing your policies, you can minimise the impact of cancellations. 

Educating your clients about the importance of these policies will also help them understand and respect your business decisions. 

By taking these steps, you can protect your business from the effects of cancellations and ensure a smoother, more profitable business. Feel free to reach out to me for further advice and tips on managing your beauty business effectively.

Katie Godfrey is a Business Strategist, Mentor and CEO of KG Professional, offering ABT Accredited courses.