A company cancellation policy is one of those things that a lot of small businesses don’t think they need—until they do. After a few clients cancel right before an appointment or miss one altogether, the lost time and profit can no longer be ignored. Thankfully, making your own company cancellation policy is relatively easy. We’ll walk you through what every company cancellation policy should have, provide you with some ready-to-use templates, and give you some tips on how to prevent last minute cancellations in this resource.
The purpose of a company cancellation policy is to limit when, how, and why a client can cancel an appointment or service without penalty. While each company tends to have a different cancellation policy based on their services, every cancellation policy template should have three key pieces of information:
How long do you want to give the client to cancel without penalty and when does the penalty kick in? 24- to 48-hour notice periods are the most common among small businesses. Make sure you send along your cancellation policy as soon as possible to ensure that your client is fully informed about your policy in advance.
Are you going to charge a standard rebooking fee, a percentage of the cost of the service, or something else?
Determine whether you want to be notified via text, email, or by phone and be sure to provide contact details like the email address or phone number you want the client to use.
Cancellations made [48 hours] or less before an appointment will be subject to a [rebooking fee of $50]. Cancellations made via [customer’s email to email@example.com] sooner than [48 hours] before an appointment will be processed without penalty.