How to be nice about cancellations without losing money
Hi Al-
I’ve taken a course and purchased the successful studios book for you. Both were helpful as I decided whether and then how to open a studio. But the most pivotal experience I had was a 5 minute laser coaching session. I was trying to decide whether to open my own business, even though I really wanted to stay away from administrative and managerial work. You asked a few questions and basically said I’d be miserable doing it (which I would have been in that mindset!) You also recommend the E-Myth. Wow! Five minutes on the phone led to a change in my mindset. I read the book, got excited, and I just celebrated my 1 year anniversary of opening my boutique wellness studio where I do primarily yoga and personal training privates. It doesn’t feel like work at all. Thank you thank you! Namaste
I have researched a lot about appointment cancellation policies, but still haven’t arrived at something I’m comfortable with. Here’s my question:
Being in the field of wellness, I have a hard time charging clients for canceling if they are ill. For instance, I have had a diabetic client for 3 years. She has 3 privates a week with me, but misses about 1/3 of them because of blood sugar problems, which means it is always just an hour before she is scheduled. I know her overall health is improved by our work together. I fear she will stop sessions if she is paying for 1 a week that she doesn’t use. Even if someone is coming down with a cold or the flu, I don’t want them coming in and spreading germs and taking longer to get well because they don’t want to get charged for the cancellation. So, do you have suggestions for a cancellation policy that respects what is right for the client’s health, maintains the integrity of my message of wellness, but also works for the business?
Lorna
I’m so glad to hear that things are going really well for you. And I’m grateful our brief work together was so impactful. Hearing stuff feedback like this just encourages me to offer even more.
You ask a pretty common question. It’s tough to deal with a private session that is canceled an hour before it’s supposed to happen. You want to be nice, but you keep losing money and wasting the time. Here’s are some proven tips for handling it…
First, have a policy set up for it. Usually something like “Cancellations made with less than 24 hour notice will be charged 50%, no-shows will be charged for a full session.”
Next, know what you’re really willing to accept. I suggest that for every 8-10 sessions someone books, you allow one cancellation or no-show with absolutely no penalty. Life happens to everyone, even responsible people. Just don’t let people know in advance that you give one “free excuse”, or people will take advantage of it.
Also, remember, you’re the boss. You have policies in place, BUT, you reserve the right to change them however you see fit and whenever you see fit. And you can do this for whomever you please. I do suggest that when you make exceptions, tell people “I don’t usually do this, but you’ve always been a good client so I’m not going to charge you for the session. I’d be grateful if you wouldn’t mention to anyone else that I didn’t charge you a cancellation fee. Thanks.” Most people are very appreciative and this also sends the message that this isn’t acceptable in the future.
Also, you’ll be surprised that you will fill your time with higher caliber clients by doing this. You may also find that people who used to have “unavoidable” excuses before suddenly make all their appointments. It’s funny how this happens…
You deserve to be paid well for your time. Feel good about standing up for yourself as a professional.
Al
Great advice that feels right in my gut. Thanks, Al! My goal is to notify clients and implement it by 4/15/10.