Input on dealing with cancellations

Johnnyboy

Johnnyboy

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I am a weekend warrior and along with that, all work is done by appointment. My problem is dealing with the cancellations. I have people dropping out on me last minute and then have no one to squeeze in and I end up with a wasted day and no money. Most of the cancellations don't ever come back anyways. I'm looking for input on how you all deal with this?

I give out receipts and I'm thinking about maybe some type note where it states that deposit may be required and that if deposit is made, something specifying that the customer has up 4 weekends from cancellation to reschedule or deposit will be lost?...but don't know how to word it or even if there is something else that might be suggested.

Once again, I do this on weekends by appointments and I wouldn't be doing this if people would reschedule but a lot of them don't. Some people I have rescheduled up to 3 times and all I do is loose the day and make no money. thanks in advance for the input
 
Have them put at least $20 down. I have never come to the point where I've had to do this, but if I was weekend only like you, it would be a complete requirement. If they aren't willing to put $20 down, they aren't serious about having you do a detail. Do you have a smart phone? If so download Square and start taking the $ down over the phone.
 
Ive had this happen before but they usually just reschedule. It it is a big job involving anything with buffing im starting to require a down payment. Im a weekend warrior just like you and thats helped me a lot with cancellations.
 
I am a weekend warrior as well, and have plenty of people interested in my time, so while I don't require a down payment, I do require their CC info to schedule an appointment for a future date with the terms that if they cancel with less than 14 days notice or they do not show up at all, they will be charged 10% of the quoted price (min. of $20) for wasting my time.
 
VP.....I do have the Square and I must say......that is a must for detailers!
I wasn't thinking an exact amount but more of a percentage like ZMC mentioned. In my case, I would never go for the CC info. I would be too afraid that they would try to blame me for any future charges or anything that wasn't supposed to be charged. I was thinking about 20% of the agreed total for the job.
 
Johnnyboy said:
VP.....I do have the Square and I must say......that is a must for detailers!
I wasn't thinking an exact amount but more of a percentage like ZMC mentioned. In my case, I would never go for the CC info. I would be too afraid that they would try to blame me for any future charges or anything that wasn't supposed to be charged. I was thinking about 20% of the agreed total for the job.
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Hopefully people view you as a business, and not just a guy in a garage washing cars. If so, they are usually willing to trust you with their payment info and do not consider you to be the type of person that may go on a shopping spree with their CC info. I often deal with people who are too busy or do not live close enough to come to my place for a pre-appointment inspection, so this is the only way I can avoid "free" cancellations and no-shows... unless I ask them to mail me a check? but let's face it - no one does that these days.
 
How can you charge them? When they call you ask for a CC? I guess. But people do cancel. I right them off. they usually don't call back. I wouldn't ask for a cc. just right it off and go on. I've only had a few cancellations and it's just part of business. People sux sometimes.
 
By Visa and MasterCard regulations (AMEX and Discover too) you can't charge them a cancellation fee for services not rendered unless you are a hotel/motel. Sure it probably happens all the time, but if the customer calls the card issuing bank and disputes the charge they will get their money back every time. Your merchant account is then subject to closure (probably wont happen first time) and you'll have to pay a charge back fee. If you have excessive charge backs they can not only close your merchant account but they can also "black list" you where no US based processor can handle your transactions. This list will include your name, business name, SSN, phone number and address. So having someone else sign for your account won't work either. You will end up with an off shore processor and pay crazy high fees and wait a week or better for your money.

I wasn't always a professional detailer, I used to be VP of sales for one of the largest independent sales companies in the merchant services business.
 
2BlackChevys said:
By Visa and MasterCard regulations (AMEX and Discover too) you can't charge them a cancellation fee for services not rendered unless you are a hotel/motel. Sure it probably happens all the time, but if the customer calls the card issuing bank and disputes the charge they will get their money back every time. Your merchant account is then subject to closure (probably wont happen first time) and you'll have to pay a charge back fee. If you have excessive charge backs they can not only close your merchant account but they can also "black list" you where no US based processor can handle your transactions. This list will include your name, business name, SSN, phone number and address. So having someone else sign for your account won't work either. You will end up with an off shore processor and pay crazy high fees and wait a week or better for your money.

I wasn't always a professional detailer, I used to be VP of sales for one of the largest independent sales companies in the merchant services business.
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Thanks for the info. I think it's bad business/karma to do this. Just move on. It's not the worst thing that's ever happend.
 
So if they cancel you have a free day. If they cancel and you charge them $20 now you have a pissed off person who will never become your customer. Do you really need $20 that bad?
 
rustytruck said:
So if they cancel you have a free day. If they cancel and you charge them $20 now you have a pissed off person who will never become your customer. Do you really need $20 that bad?
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I completely agree with this. I had a job cancel that was booked a few weeks in advance. I couldn't get a hold of them the day prior and they just completely forgot about the day. They were so sorry and even offered to pay me a small fee since I drove all the way out there and nobody was home. I told her that's not how I do business and I understand with busy schedules things can get overlooked. She is now one of my best customers.

The $20 isn't worth it. Give your customers the benefit of the doubt. If you have a large number of cancellations perhaps take a look at your scheduling and follow up process. I ask the customer if they would like a reminder call/email/text the day before the job. If they book online this process is automated via reminder emails.

I've only ever had 2 people cancel. One of them was really weird because the car was there but nobody was home and nobody ever answered the phone. I almost called the police because I was worried something bad might have happened to them because they were texting me just 30 mins before I got onsite. I never did hear back from them...
 
So to be honest... I have never charged anyone... It is just a way for me to show people that my time is valuable and that if they have priorities that are more important than keeping an appointment, it would be best not to schedule it in the first place. Now obviously I can understand if something important comes up, having the car detailed is going to have to be rescheduled. I am totally fine with that. But the excuse of "Sorry, had a late night last night... slept all day and couldn't drop the car off" just would not fly with me, I would feel I was entitled to some form of compensation. As a weekend only operation, I only do 2-3 cars each month, but have significantly more interest than that so I have to turn away other customers in the meantime because someone has "claimed that spot" already (for instance, I am currently "booked" until June based on my given available weekends from now until then).

I was unaware of these terms for cancellation fees. Does this still hold true of the customer-to-be accepts the terms of the agreement by offering the CC info knowing they are subject to a certain payment if they do not show up for their appointment? I know I am in no way shape or form a hotel or motel, but the idea is the same to me... I have 1 garage spot, and if someone else promises to fill that spot, and then does not show up - it costs me money, just like a hotel has X # of rooms and if someone does not show up, and costs them money.

Thanks for the info.
 
All great info and interesting to see everyones different point of views on this!
 
I will never charge anyone for cancelling their appointment. I don't ever want any of my customers up set over $20 charge. Most of my customers are regulars and not worth up setting them.
 
That's a tough one. You don't want to pizz anyone off, but if they no-show, there goes your day.

It's probably not worth it. I always tell them that if smething comes up where they need to reschedule, I would really appreciate it if hey could call me. Seems to work.
 
rustytruck said:
So if they cancel you have a free day. If they cancel and you charge them $20 now you have a pissed off person who will never become your customer. Do you really need $20 that bad?
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If someone gets mad and does not come back over $20, it is very unlikely they would be a returning customer anyway. It is not about the $20 (or %), it is about securing your clients appointment. This is a common practice in many professional fields, why should we be any different?

Again, I do NOT charge my clients cancellation fees, but thinking that someone that does is making bad business practices is a completely different story.

If I schedule someone a $400 Opti-Coat job, and they cancel the morning of and never schedule again, you are out a potential $400, or whatever else you could have scheduled that day instead of that appointment.

Cancellation fees are not about making money when people cancel, it is about securing dedicated customers that are not going to waste your time. If I was a high end detailer that only did exotics, this would be an absolute requirement. For volume detailers, or mid level operators that can easily fill a half day or so in your schedule, no big deal, it is not worth it.

Also, if the client calls up and says they have to cancel, and you feel it is a legit reason, or if you just don't want to upset the client, just waive the fee! They will feel like you are doing them a huge favor, and you will still cement most of your appointments by charging the fee. Win win!:dblthumb2:
 
Johnnyboy said:
I am a weekend warrior and along with that, all work is done by appointment. My problem is dealing with the cancellations. I have people dropping out on me last minute and then have no one to squeeze in and I end up with a wasted day and no money. Most of the cancellations don't ever come back anyways. I'm looking for input on how you all deal with this?

I give out receipts and I'm thinking about maybe some type note where it states that deposit may be required and that if deposit is made, something specifying that the customer has up 4 weekends from cancellation to reschedule or deposit will be lost?...but don't know how to word it or even if there is something else that might be suggested.

Once again, I do this on weekends by appointments and I wouldn't be doing this if people would reschedule but a lot of them don't. Some people I have rescheduled up to 3 times and all I do is loose the day and make no money. thanks in advance for the input
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I dont require a deposit, but cancellations happen. Sometimes its flaky people and sometimes its a legit reason. Either way you don't get paid

I always try to call a day or two in advance of a job to remind the person and allow myself an opportunity to fill the spot if they back out.

I once drove 30 mins on a sunday morning to detail a truck and upon arrival the guy sent me home because he had 'forgot' and he was having people at the house that afternoon. Lesson learned from that a'hole. Now I always confirm in advance
 
I just had 2 cancellations.
Both re-scheduled for next week.
Do I charge them $20? I don't think they'd like that and they would cancel again.
So I probably wouldn't get the $20 (how would I collect it) and I'd lose $600 worth of work.
So IMHO, $600 out ways $20.
 
Detailing by M said:
I just had 2 cancellations.
Both re-scheduled for next week.
Do I charge them $20? I don't think they'd like that and they would cancel again.
So I probably wouldn't get the $20 (how would I collect it) and I'd lose $600 worth of work.
So IMHO, $600 out weighs $20.
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Well it is obviously a different story if they reschedule.
 
After getting burned the first time, I always call to confirm, and since I don't take cards (yet), I don't have the ability to charge them. Probably wouldn't anyway for all the reasons above.

If I can't reach you to confirm, then I try to schedule someone else, like the person I had to book 2-3 weeks out. ("I just had a last minute cancellation, would day after tomorrow be convenient to reschedule?)
 
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