Taking Deposits – Yes or No?
22 Oct 2020
Written by mike
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 –
- What are your level of no-shows?
- Do you have regular repeat customers or are they mainly new one off visits?
- 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?
- 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 a large number of walk in’s 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 really 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.
Your salon is very busy and you can’t afford to have people not show up. Or, your salon is quiet and again you can’t afford to have people not show up.
It is a very easy step. With iBookings it is. iBookings is proven to increase the number of bookings. Booking reminders and confirmation can help even further.
The key to making deposits work for you –
Make it easy. Clients want a fuss free booking process. We can make that happen.
Make it flexible. Depending on the service and amount it needs to be bespoke.
Why you should take deposits –
A recent study reported that taking a deposit reduces the risk of no shows by over 50%.
The recent study also suggested that the average bill is £42 and the average time per service is 42 minutes.
Having just 1 extra client turn up per day when they otherwise wouldn’t equates to almost £15k PA
There has been a doubling of salons taking deposits who have also seen their average bill increase by almost 20%.
Adding in text reminders / booking confirmations reduces that level of no shows down even further.
The details –
Most businesses question whether to take a % or a set amount. iSalon has the flexibility to amend this so chat to us and our experts will help you to decide what’s best for you. No two salons are the same.
If you’d like to know more or chat to us about arranging a deposit scheme, please email us on email@example.com.
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