cancellation fee?

For any shop owners/managers....

Does anyone charge a cancellation fee if a customer cancels their appointment same day? Mainly during a busy remote start season like we're in right now. I was thinking of implementing a $25 appointment reservation fee that would be paid up front and ultimately become part of their payment for the final cost of their install. If they dont show I keep the $25.

Let me know if anyone does or has tried this.

Not that I'm a shop owner or manager, but IMO that is totally fair. After all, you are forgoing income thanks to their cancellation.

A shop subject to excess cancellations could go out of business thru no fault of their own. It's the equivalent of a call-out fee.


Of course you might substitute another install OR decide to refund that fee in the interests of goodwill, etc.

I know this was back in December but I'm curious if you implemented anything and how it turned out? I'm an owner and I've considered it here in California because some people either get "busy" or "forget" or just over promise and never show up so I was thinking of a $10 hold appointment charge as well. Other industries such as Dental, Massage/Spa, Hair Salons in our area have 24 hour cancellation policies or they charge ??? but I've never asked them or been a "victim" of the policy. Another option, although a little weak, is to get a deposit (more than $25) to hold the appointment OR its first come/serve for the busy season. I am unsure of how my customer base would react to a hold appt. charge but in the busy times it may well be worth losing 1-5 potential customers to secure the other 95% and control Payroll and scheduling. I think there may be some legal course a customer could take and/or dispute a credit card charge for services not rendered but charged, so that would may require a very specific written policy that requires a signature from the customer when holding the appointment and caution would have to be taken if using a hold fee and charging over the phone. Just some out loud thoughts. Thanks for bringing this up.

We never did anything because the majority of our sales are over the phone or via email. For the most part it works out because if someone doesn't show I just call up folks that got gift certificates til I get someone close by that's willing to come right away. It would be nice to try something. I just don't know how to make it work smoothly.

It might not be applicable, but if forms are used - and maybe over the phone etc - an official statement that a cancellation fee applies. (Fee may vary with appointment type etc). But you the waive the fee in their case because you like them or it's no big deal.

I like bills that state a late payment fee applies but I never else rarely get charged despite sometimes several late payments. That non-charge gives a lot of goodwill!! (IMO)
Mind you, that never applies to Amex (as far as I recall... LOL).
And in many cases I might pay in advance when I have the money, or I round up the late payment to the next $50 or $100 etc. (Not that I think that is the reason for waiving the fee by big corporates - I doubt their software has (or had?) such an obvious(?) feature.)

When our shop schedules appointments we require a $50 deposit. We tell our customers that this holds the appointment spot as we are setting aside a portion of our day for their installation. We also tell them that $50 go straight towards the cost of installation. We take the deposit either in person or over the phone with a credit card. We rarely have someone miss an appointment. I think this remote start season there was only one person that forgot their appointment. They apologized and rescheduled and we told them we wouldn't hold their deposit. They were extremely happy (that whole goodwill thing) and we still got the install.

I'm sure I don't have to tell other shops how good it is to only have one customer miss an appointment for an entire season :)

We do all of our new business either via the internet or recommendations, we always require a deposit of $200.
Yes, we've had a couple of attempted frauds.

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Test before boxing up.

cdx280 said/explained well.
It made me think of my policy/suggestion re ordering sparts - ie, spare parts for fellow car club friends or members etc - namely 50% up front.
Same thing - it's deducted from the final payment (of course) but if not paid or collected within <whatever> time, the part is resold. (Any surplus can/might be refunded to the original orderer.)

cdx280 wrote:

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When our shop schedules appointments we require a $50 deposit. We tell our customers that this holds the appointment spot as we are setting aside a portion of our day for their installation. We also tell them that $50 go straight towards the cost of installation. We take the deposit either in person or over the phone with a credit card. We rarely have someone miss an appointment. I think this remote start season there was only one person that forgot their appointment. They apologized and rescheduled and we told them we wouldn't hold their deposit. They were extremely happy (that whole goodwill thing) and we still got the install.

I'm sure I don't have to tell other shops how good it is to only have one customer miss an appointment for an entire season :)

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Hey cdx280, is that policy year round or just during peak times like "remote start" season?

I'd argue it's a default and applicable anytime.
You could state or explain that if other bookings are NOT missed nor other expenses incurred, then you'll refund.


BTW - apols for my last reply. It's a bit digressive but it may provoke ideas - especially if uncommon parts are ordered for a missed appointment. (Tho I expect the deposit should cover time and the goods' return costs...)