No shows and late cancellations are costing your business more than you realise. That’s why we created a few ways to help protect your appointment book, like Online booking deposits and Online cancellation fees. But we know that introducing deposits or cancellations can feel terrifying. What if clients get angry? What if they stop booking online?
The truth is, when communicated properly, cancellation policies actually attract better quality clients and protect your business. Here’s how to introduce fees without damaging client relationships.
Deposits vs. Cancellation fees… what do I choose?
You have several options depending on what works for your business:
Deposits
- You charge a client upfront to secure their booking.
- You can set a fixed amount (e.g. $20-50) or a percentage (e.g. 25-50%) on all services.
- You can also customise it to only apply to specific services (e.g. all services have a $20 deposit, except colour services, which have a 50% deposit).
- The deposit is taken off the total cost of their invoice when checking out.
Cancellation fees
- You require your clients to save their credit card and agree to the cancellation policy to secure their booking.
- You can set a fixed amount (e.g. $20-50) or a percentage (e.g. 25-50%) on all services.
- You can charge their card if the service gets changed to the “Cancelled” or “No-show” status.
- When charging a cancellation fee, Kitomba automatically calculates how much the client needs to pay based on the agreed policy (e.g. $10 – which is 20% of a $50 service).
Our recommendation for starting out: Deposits have many benefits other than protecting you from no-shows and late cancellations. First, they ensure that clients who are booking in are actually committed to their appointment. They also ensure that if the customer needs to cancel, that you are 100% protected, whereas with cancellation fees it’s dependent on whether your staff decides to charge it. Plus, our data shows that clients who pay for a deposit tend to buy more retail products! We think it’s because the service cost appears lower (with the deposit already paid), and so clients are often more willing to add that extra product or treatment.
Why cancellation policies matter (more than you think)
The real cost of no-shows
When salon owner Loz Main looked at her numbers, her accountant delivered a shocking reality: “Your cancellations cost you a full-time hairdresser’s wage last year.”
That’s not just lost revenue; that’s a team member you could have hired, equipment you could have upgraded, or the holiday you deserved.
The client quality shift
Here’s what Loz discovered after introducing deposits: “We are attracting more A-grade clients because they’retaking our business more seriously by putting some financial support to their appointment. Now we have literally maybe a 1% no-show rate because we have that strong procedure around it.”
The clients who respect your time and business will understand. The ones who don’t? They’re probably the ones costing you money anyway.
Setting up your policy
You need to choose a few things to create your cancellation policy.
Notice period
Your notice period is how much notice a client needs to provide to avoid the cancellation fee. This can
differ depending on what kind of business you are, and how long it usually takes to fill that space.
Most salons and spas choose between 24 hours, 48 hours, 72 hours, or 1 week. This gives clients
reasonable flexibility while protecting your business and gives you the opportunity to fill that space.
Service-specific policies
- If you decide to take deposits, you have the ability to customise what your policy is per service category.
Consider different structures for: - Quick services (cuts, blowouts): Smaller deposits
- Colour/chemical services: Higher deposits (50% is common)
- Bridal/special events: Full payment up front
How to communicate with existing clients
The biggest mistake: Turning on cancellation fees without warning and letting clients discover it during
booking. This can feel jarring to them, and impact your relationship.
The right approach: Be transparent, communicate it with them early, and don’t be afraid to explain why
you have to introduce it – most clients are understanding!
Templates for introducing fees
Email to all clients
Subject: An important update about your bookings
Hi [Client Name],
We wanted to let you know about an upcoming change to our booking system that will help us serve
you better.
Starting [DATE], we’ll be introducing a [deposit/cancellation fee] for all online bookings. Here’s what this
means for you:
What’s changing:
• A [amount/percentage] deposit will be required when you book online
• This deposit goes toward your service; you’re not paying anything extra!
• If you need to cancel or reschedule, please email or call us with at least [24 hours’] notice to avoid
the fee
Why we’re doing this: Like many salons, we’ve experienced an increase in last-minute cancellations and
no-shows. When an appointment is cancelled with short notice, we can’t fill that spot, which means we
can’t serve other clients who need us.
This policy helps us:
• Reduce wait times for appointments
• Continue offering the quality service you expect
What hasn’t changed:
• Rescheduling with 24+ hours’ notice is always free
• Our commitment to making you look and feel amazing!
We appreciate your understanding and continued support. If you have any questions, please don’t
hesitate to reach out.
Thank you for being such an amazing client!
[Your Salon Name]
SMS to active clients
“Hi [Name]! Quick heads up: Starting [DATE], online bookings will require a small deposit. Need to
reschedule? Just give us [24hrs] notice and we’ll refund it. Thanks for understanding! – [Salon Name]“
Social media post
“Starting [DATE], we’ll be introducing a deposit when you make a booking online, to help reduce no-shows and last-minute cancellations. Don’t worry, your deposit will go straight towards your service when you check out; you’re not paying extra. Questions? DM us or ask at your next appointment!”
When implementing deposits or cancellation fees, be sure to update your:
• Website booking page with clear policy explanation
• Booking confirmation messages
• Voicemail greeting (if relevant)
• Front desk signage
The bottom line
Introducing cancellation fees or deposits feels scary because you’re asking clients to change their
behavior. But here’s what successful salon owners know: the clients worth keeping will understand and
adapt.
As Loz Main put it: “Those clients that were probably the ones that were always cancelling last minute
were the ones that didn’t want to do the deposits and are no longer clients. Now we’ve just made room
for fantastic clients.”
Your time is valuable. Your business deserves protection. And your best clients will respect that.
Your business sustainability depends on protecting your time and revenue. Start today, communicate
clearly, and watch your client quality improve while your no-show rate plummets.