Taking Deposits & Overcoming the Awkwardness!

You’ve worked hard to fill your books and your business is starting to hum, or already humming away like a little… hummingbird. You have a nice number of loyal clients who spend a fair bit with you. It’s all good.

But if you’re like nearly every other Clinic Owner or Manager, you have to deal with the dreaded no shows. They cost you time, money and are just plain annoying, especially when your books are full, and you have a waiting list.

A clear solution to this problem is to take deposits for treatments at the time of booking. But the extreme awkwardness of asking your VIP clients to leave a deposit, the risk of damaging the trust you’ve built up over so long puts it in the ‘it’s all a bit hard’ basket, to consider another day, or when you really have no other choice.

This is totally understandable, and up until now perhaps the perceived awkwardness of having to ask for a deposit has been greater than the cost of your no shows. But the thing is, the cost of living is changing the game. Everything is expensive, interest rates keep on rising, and people are feeling the pinch. Sadly, as we all know, often one of the first things to get cut out of a budget in tough times are beauty treatments, which places your business at greater risk, when you really need to keep your cash flow steady.

DID YOU KNOW:

Businesses who use deposits reduce their no-shows by 30%?

Clients who pay a deposit spend 30% more on the day?

We know how hard it is to have these conversations, but as business owners or managers, keeping your revenue healthy, retaining your staff, and ensuring you have appointments available for your VIPs are your priorities, so anything that helps you achieve these outcomes should definitely be seriously considered.

At Timely, we have spoken to many, many clinic owners, and managers, and understand how hard it feels to make the shift into deposit-taking, but also have seen the benefits to a business once implemented.

Here are our top tips to easily implement deposittaking into your business.

1. Let your clients know in advance. Communication is key! Give your clients a few weeks’ notice and time for this to sink in. Let them know your new policy means a deposit is required for all new bookings but let them know they have up to 24 hours (or whenever you choose) before the appointment to make changes with no charge. Sometimes the way you

If possible, try to ensure no one is surprised by the new process- share the update on social media, by text and email, as well as putting a notice on your front counter. Explain why you’re doing it, and let your clients know you value them, love doing business with them, and this policy is only in place for the kind of customers that don’t show up (never them of course!) and end up costing everyone when the prices have to rise to fill the revenue gap.

2. Don’t be afraid to be human. Being vulnerable can be a bit scary, especially when you want to show your clients you are completely on top of your business and have everything running smoothly, but there’s something very relatable to someone explaining that things aren’t perfect (because business is challenging for everyone!). If you explain to your clients how no shows cost you thousands in revenue each year, and how it means wasted time that could be spent fitting in the loyal customers (like them!), it really makes the decision very easy to understand.

3. Deposits are a way of life now.

If there was one positive to our industry that Covid gave us (and we had to think hard to think of one!) it’s that putting down deposits is pretty normal now. Whether it’s for a restaurant, cafe or hair salon, small businesses everywhere are securing their revenue by protecting themselves from no shows. Clients who value your work and support your business should see this new process as an extension of that same support.

If you’d like some more help with setting up deposits or working out what your cancellation policy should be, visit https:// www.gettimely.com/creating-your-bookingpolicy/ for a handy guide.