Saturday, November 13, 2010

What ways can someone protect themselves from losing money when they have cancellations? -

I am new at doing this kind of work someone else told me she had a cancellation lost money didn t know how to make up for it....I had a cancellation this past week also just underearned. What do people do when they have a client who cancells they lose the money they counted on. I am not looking for ways to get that person to pay but asking if you just over schedule so you make enough money or just charge more to all clients or what ways you have come up with to make up for these days when you end up not working. What do you do with your time on those days. The person that asked me about it does some kind of work where she goes out to the clients home to work. My husband I do handyman work I do organizing of offices homes. So any ideas you can share are greatly appreciated.

Over scheduling would have to be done very judiciously, you could also figure out how much you lose due to cancellations and increase your fees, but only if you don t lose clients as a result. Charging for missed appointments would antagonize people.You can also while you have dead time do some planning, preparation, especially when organizing offices, if you had the lay outs in advance. Good Luck

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Charge a non-refundable deposit when you book the work. If they cancel, you keep $25-$50 as a cancel fee.

Ask for a minimum down payment called Save the date . They have to Save the date on your schedule so noone else gets it. Make a notation in small print that IF THE CLIENT CANCELS A SMALL FEE WILL BE DEDUCTED . To determine what that fee will be you add gas, and lunch. $20 gas, $20 lunch, $10 misc. $50. ( or more thats up to you but it should be minimum $50) You will have gas in your car for the next client and lunch for yourself. Or take the lunch money and add it to the tank for the next two clients. This was you never lose. When they sign the contract -- you better have one of those ALWAYS it also says in red and bold that THE TIME AND DAY ISNT GUARENTEED because of the volume of service. A minimal SAVE THE DATE fee will secure time and date.(Just like people do for their wedding date at the caterers)Please Note:I have cancelled on people that didnt SAVE THE DATE to make a point. Then after they become a client and are satisfied they will pass that SAVE THE DATE information onto the referral and make sure to let them know how important that it and how small of a fee you charge for it. Always works. When they say tuesdays are not good what day you think I call them and tell them is the next available day? Tuesdays ofcourse. The next available day is the following Tuesday or Friday after. They wont wait, pay the $50, and you have a new client that you must satisfy for the word of mouth advertising of that SAVE THE DATE fee you charge =) Make sense? Do what the big companies do lol

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