Five Cancellation Policy Mistakes & What To Do Instead

By Britt Seva, Salon Business Coach and Founder of Thrivers Society

There are two universal truths in this industry: Every business owner (a.k.a., you if you’re a stylist or salon owner) needs to have a cancellation policy. And nobody likes talking about it.

Listen, having the hard conversation about (not to mention enforcing) your cancellation policy is not fun, but it’s necessary. Let’s dig into the top five most common cancellation policy mistakes and what to do about them!

Mistake #1: Not Having a Cancellation Policy

Real talk: If you don’t have a cancellation policy, you’re allowing your clients to walk all over you. Yes, sometimes life gets in the way (a sick child, a flat tire, an unexpected work meeting). But here’s the thing: adults are just older children.

Meaning, we’ll try to push the limits and get away with as much as we can.

And, like kids, we respond well to negative repercussions…which is where the cancellation policy comes in.

Does that mean you always have to enforce it, even when your client is having a run of bad luck? Not necessarily.

Around here, we believe that everybody should get one get-out-of-jail-free pass, one time that they can cancel against policy and it’s okay. BUT that comes with certain verbiage: “Thanks for reaching out. I totally understand about [situation]. I’m going to give you a one-time pass on the cancellation policy ’cause I know you’ve never canceled before. In the future, if you do cancel regardless of reason within [whatever the policy is], there is a penalty of [whatever the penalty is]. Just something to keep in mind. I’ll waive it for this time. Hope you feel better [or whatever response makes the most sense].” When you use this language, it reinforces that this is a one-time thing. Next time, you’ll enforce the policy.

Your time is worth protecting, friend. Take the time to build a cancellation policy and practice talking about it to get comfortable and confident.

Mistake #2: Not Enforcing Your Cancellation Policy

Let’s say you do have a cancellation policy, but you never enforce it. Every time somebody cancels last minute or at a timeline that doesn’t work for you, you say, “Oh, no worries. I understand. See you soon.”

It’s fairly immature to go to any kind of business and say, “I should get a get-out-of-jail-free pass because I’m having a bad day/my car got a flat,” etc. Everybody has bad days. Everybody has days where things go wrong. But you don’t need to take a full hit because somebody else’s day didn’t go as planned.

Does that mean you can’t be flexible? Of course not. You can use the verbiage in mistake #1 to communicate that you understand, but this is a one-time pass. Will there be instances where you need to bend your cancellation policy? Probably. Life happens, right? But enforcing it 99% of the time will enable you to run a solid business and protect your time.

Mistake #3: Only Posting It on Your Website

The average client doesn’t peruse your website on a regular basis. 99% of the time, they get on your site to book an appointment, maybe click around a bit, then log off. In other words, they aren’t going out their way to look for your cancellation policy.

Think about it this way: When you sign a waiver or fill out a form on a website, do you read the fine print? Probably not. Your clients don’t either.

Assuming your clients know and agree with your cancellation policy just because it’s on your website is not fair and possibly not legally enforceable. Instead, have a pop-up on your online booking platforms that reminds them of your policy every time they book. That way, they’re reminded of your policy and can decide before they book whether this appointment is a good fit for their schedule.

Mistake #4: Mentioning It at the First Appointment (& Never Again)

If you’re not talking about your cancellation policy, it’s not a policy. It’s an idea.

Should you explain how your business works (including your cancellation policy) early in the client/stylist relationship? Absolutely. You can do that verbally, in written form, or digitally.

Should you mention your cancellation policy the first time a new guest is in your chair? Yes.

It’s important to establish the foundation of the client/stylist relationship because people don’t know your business like you do. They don’t know your policies and systems inside and out. So, walking them through on their first appointment or sending friendly reminders throughout the year when big events or seasons (like the holidays) come up is good business practice.

How do you bring up your cancellation policy when big events or seasons approach? Try this verbiage: “Just a reminder: I know we haven’t talked about it in a while, but since the holidays can be pretty stressful, I’m using this time to remind my clients about our cancellation policy. I know your life is busy, my life is busy, so out of mutual respect, I wanted to remind you that [talk about your policy here].”

Finding a cadence that allows you to talk about your policy with clients a few times a year keeps it top of mind for you and them.

Mistake #5: Over-penalizing

While some stylists never mention their cancellation policy, others take it a step too far and create overly rigid policies with heavy penalties.

We get it—if somebody doesn’t come in, it’s money out of your pocket, right?

That being said, there’s a lot of laws around services rendered and payments due for services rendered. In most places, the law is written so that if a service is not rendered, a consumer doesn’t need to pay. (Cancellation policy regulations vary by state, so check yours to be certain (or, one better, contact a local small business attorney for 100% certainty.).

you’ll lose the client, and they’ll blast you on review sites and social media.

Sustaining your reputation is what’s most important. A cancellation policy is meant to be a slap on the wrist and an opportunity for behavior correction. It’s not meant to make people feel like they’ve hurt us or for it to be too heavy.

Four Things to Consider When Crafting Your Cancellation Policy:

1. Decide what your cancellation policy will be. Consult a local small business attorney to help identify your options and implement an enforceable policy.

2. Have your clients agree to the cancellation policy in the salon. Taking the 30 seconds to restate it out loud to them shows that you mean it.

3. Create a way to invoice clients for the penalty charge. Have a structure in place so they can’t book their next appointment until the penalty is paid. They either follow your rule or can’t play with you anymore.

4. Customize your policy to your business. If you work five days a week, your policy will look different than somebody who works three days a week. If you’re more part-time, consider a 36, 48, or even 72-hour policy.

For example, if you have a policy where you charge 50% of the service, the client will likely win if they took you to small claims court. Or if you ran the client’s credit card on file with a 50% cancellation policy and they fight it, they’ll likely win due to consumer protection laws. Either way, chances are

Having and enforcing a cancellation policy is difficult. No doubt about it. But having the tough conversation helps you ensure you have clients in your business who care about it and you. So, build up the confidence you need to have the conversation to enforce that policy. Create the structure and the conversation. Consider what works best for you and your business, and don’t be afraid to hold people accountable for their actions.