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BUSINESS
IT’S TIME TO CHANGE THE WAY YOU THINK ABOUT DEPOSITS! By Tamara Reid, Head of Brand for Timely Business Management Software.
Once upon a time, businesses shied away from taking deposits for fear of upsetting their clients. But times are a-changing and now, salons are turning the deposit-taking process into a positive one for everyone involved. Here’s how they’re doing it. When it comes to deposits, the theory is this: that by asking a client to put down a deposit on booking (somewhere between 10 and 70 per cent of the total price) you’re protecting your cash flow in case they don’t show up. At face value, deposits sound great (and that’s because they are great, but more on that later); yet many business owners feel anxious about introducing a deposit policy because they don’t want to a) create more work or b) upset their clients. Truth is, these scenarios are usually avoidable! Now is the perfect time to reframe the way we approach deposits.
Revisiting your deposit policy
Requesting a deposit can reduce no shows by weeding out clients who aren’t committed to their booking. “I like taking a deposit because it protects my income,” says Emily 70
Beauty Biz Year 15 Issue 2
Harper, founder of Brows by Emily Harper, who introduced a deposit policy and hasn’t looked back. “I’ve found that people only pay the deposit if they are serious about coming. Since implementing deposits, I hardly get cancellations and when I do it’s always for a legitimate reason.”
Communicating your new policy
Communication is key as you’ll need to let your regulars know that your policy has changed. You could do this via your website, social media or at the time of booking. If you don’t like the word ‘deposit’, try flipping the script by labeling this payment as a ‘reservation fee’ instead. Steve Moore, business coach at BOSS - Bring on Salon Success and co-founder of Moore Beautiful, reassures clients by telling them that the fee will be deducted from the total cost: “Most clients love this as it means they have to pay less on the day!”
Setting yourself up for success
Use business management software, such as Timely, to automate your deposit policy. Timely allows salons to take online bookings from either their website or social media (Instagram and Facebook). Businesses with TimelyPay have complete control over how they take deposits. They can choose which services require deposits, set flat booking fees, charge a percentage, or require full payment up front; they can even ask clients to save cards securely into their Timely account - there are a range of flexible options to suit any type of deposit policy! The client will be prompted to make a payment to secure their appointment, then they’ll pay any outstanding balance on the day of their service. With more technology at our fingertips than ever, is it time to revisit the deposit policy for your business?
