Taking Deposits

It is a common discussion amongst salon owners, should you or shouldn’t you request a deposit from your clients. It can be frustrating when clients cancel last minute or simply don’t show. It can also be daunting to consider implementing a deposit scheme and explaining to clients.

The first questions to ask yourself –

1. What is your level of no-shows?
2. Do you have regular repeat customers or are they mainly new one-off visits?
3. How busy is your salon and your staff – what’s your level of utilisation?
   A) What’s your average bill?
   B) How long is your average service/treatment time?
4. How easy is it?

To find the answers to these questions you can view your iSalon utilisation report for hours worked and available. Your Salon KPI report highlights no shows, average bill, and service time and the 5-star client report shows clients that return on a regular basis.

It’s likely that taking a deposit isn’t right for you if –

Your client booking report shows that you have zero no shows. There is no need to introduce a potential barrier if you currently experience zero no shows.

Your clients are mostly regular, repeat customers and any new clients you do have always show up without fail. Again, you have no need for a potential barrier in this instance.

If your salon is empty most of the time and you have the time to deal with many walk ins to recuperate some of the lost income from cancellations.

Lastly, if it is a difficult and unnecessary step to add to booking and it may put your clients off. (There are some complicated and un-user-friendly booking systems).

However, deposits can be your business best friend if –

You experience a high level of no shows. Taking a deposit is proven to improve the number of clients arriving on time for their appointment.

You feel a sense of commitment is needed to remind your new clients to turn up and you want to remind your regular clients of the value of your time too. We can all become complacent, and it is no bad thing to remind them.