Cancel Culture
Hi Barb, I really struggle with charging cancellation fees at my salon. I find more often than not I’m waiving them to avoid having the conversation. Help!
You certainly aren’t alone, Doll! Cancellation fees are like my hubby’s daily glass of prune juice. Not particularly enjoyable but necessary to keep things running – TMI Barb, I know.
Dog grooming is a business that runs as an appointment-based model, meaning our revenue is directly tied to our scheduled bookings. I know this is not news to you, but it can help to remember why we charge these pesky things. In much simpler terms, if Susan no-shows with Honey, we don’t get the money! – and we need that money, Honey!
Cancellation fees have a bad rep for being a money grabbing scheme for business owners trying to be a bit cheeky and get cash for not doing the work, but that’s not why we have and need them. Cancellation fees aren’t a tool for generating extra income but protecting our projected income.
Hopefully in your time as a groomer you’ve noticed your days are booked at a similar level. You’ve learnt through trial and error what the body and brain can handle and how much work needs to be done per day to meet your economic needs. So, you’ve landed at X number of dogs a day (with variation for sizes and temperaments I hope!).
I never was very good at algebra, but I know enough to gather that X - 1 = less $$. The math for once IS mathing.
A Bad Case of CBB
Cancellation fees are not just about recouping some of the ‘less $$’ but they deter clients from what I like to call CBB. No, it’s not a new lifestyle channel on the telly, it’s my acronym for Careless Booking Behaviour.
CBB is a condition that plagues appointment-based small businesses like ours.
It happens when Susan was chatting to Lisa, who has just had her dog groomed. Susan said “ahh yes I must do that” and later that night, makes an appointment. When the day of the appointment rolls around, she decides that Honey doesn’t really need a groom so doesn’t take her. Susan has caught CBB, but she isn’t the one suffering from her condition, you are!
IMPLeMENTATION
Cancellation fees are a whole lot easier to implement when you have forewarned the client and have proof of this. I recommend sending your cancellation policy with your booking confirmation where possible, that way you have it in writing and it’s a bonus if the confirmation requires an action from them (e.g. signing, confirming, box-ticking etc!). I’ve never been very tech savvy, it’s a bit out of my wheelhouse, which is why it’s great there are snazzy programs available that can do it all for you.
As to what to include in your cancellation policy, it’s important to be realistic and fair to the client whilst also knowing how long it might take you to fill or re-arrange the day should someone cancel. Twenty-four hours’ notice is generally a reasonable ask for salons with front-of-house staff or extra hands to help fill a spot. You might as for 48 hours if you’re solo and would need to do extra hours admin post-grooming.
THE EXCEPTIONS
Of course, there are always going to be exceptions to the rule. Here are a few things I would consider when waving a cancellation fee:
- Compassionate grounds: Life can be a nasty little B sometimes. It’s okay to waive a fee every now and again should the reason for cancelling warrant it, particularly with your long-time clients.
- If the client is often moving around their schedule for you. We love a flexible client! You know the type that is first to jump into a very impressive front split if it means helping us fix an overbooked day or leave early when we’re feeling under the weather. We must protect these rare specimens!
- It’s a first-time client that kicks up a stink and throws a tantrum when you try to enforce the fee. No, we’re not rewarding bad behaviour, but yes you did read that correctly. It was the very classy Maya Angelou that said, “When someone shows you who they are, believe them the first time”. You don’t need to put up with BBB, not to be confused with CBB, BBB stands for ‘Blatantly B*tchy Behaviour,’ and sometimes it is still a win to part ways with a client rather than chase the $$.
I hope this makes you feel a bit better about sticking to your guns and charging your cancellation fees, but remember you always have the option of asking them to pay a deposit for their next appointment instead. If you’re putting your faith and dollars behind them to attend their next appointment, then why shouldn’t Susan bet her own money on her and Honey?
Some food for thought, Darling
Barb-bye!