Should You Require Deposits? A Guide to Prepayments and Policies

No-shows are killing your income.

Every empty chair is money lost. Every last-minute cancellation is time you can't get back.

Deposits seem like the obvious solution. But here's the tension:

Require deposits → Some potential clients won't book. Don't require deposits → Some booked clients won't show.

This guide helps you find the right balance for your business.

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The Case for Deposits

The Numbers

• Salons without deposits see 15-30% no-show rates
• Salons with deposits see 3-8% no-show rates
• Even 50% deposits reduce no-shows dramatically

The math: If you have 20 appointments/week and 20% no-show, that's 4 lost appointments. At €50 average, that's €200/week, €10,000/year in lost revenue.

Who's Actually Flaky?

Higher no-show risk:

• First-time clients (no relationship yet)
• Long/expensive services (easy to chicken out)
• Weekend evening appointments (plans change)
• Far-in-advance bookings (people forget)

Lower no-show risk:

• Regular clients (relationship = accountability)
• Short/quick services (less commitment)
• Morning appointments (fewer competing plans)

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The Case Against Deposits

Friction Costs Bookings

Every step in booking is a dropout point.

• See availability → 100% continue
• Enter details → 90% continue
• Add card for deposit → 60-80% continue

Some clients won't book if deposits are required. The question is: are those the clients you want?

Trust Matters

Deposits can feel:

• Impersonal for regular clients
• Presumptuous ("You assume I'll flake?")
• Like a money grab

This matters more in some markets than others.

Chargebacks Happen

Some clients will:

• Dispute the charge
• Claim they never booked
• Win the chargeback

Not common, but it happens.

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The Hybrid Approach (Often Best)

Deposits for New Clients Only

Logic: First-time clients are highest risk. Once they've shown up reliably, trust is earned.

Implementation:

• Require deposit on first booking
• After 2-3 successful appointments, no deposit needed
• If they no-show once, back to requiring deposits

Deposits for High-Value Services Only

Logic: A €30 haircut no-show stings. A €300 color correction no-show is devastating.

Implementation:

• Services under €50: no deposit
• Services €50-100: 25-50% deposit
• Services €100+: 50% deposit or full prepayment

Deposits for Peak Times Only

Logic: Saturday no-shows hurt more because you could have filled that slot.

Implementation:

• Weekdays: no deposit
• Friday evening/Saturday/Sunday: deposit required

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How Much to Charge

Recommended Approach

For most salons: 50% deposit for new clients and high-value services.

For high-end salons: Full prepayment is expected and accepted.

For quick-service: Card on file rather than upfront deposit.

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The Card-on-File Alternative

Instead of charging upfront, collect card details and only charge if they no-show.

How It Works

1. Client books online
2. System collects card details (not charged)
3. Client shows up → nothing charged
4. Client no-shows → late cancellation fee charged

Pros

• Lower friction than upfront deposit
• Still discourages no-shows
• Client doesn't feel "out" money until they flake

Cons

• Higher chargeback risk
• Some clients still uncomfortable giving card
• Feels aggressive if poorly communicated

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Implementing Your Policy

Communication is Everything

Bad: "We require a 50% deposit."

Better: "To secure your appointment time, we ask for a 50% deposit. This protects your slot and is applied to your service total."

Best: "We've implemented a booking deposit to ensure we can give every client our full attention. Your deposit secures your reserved time and goes toward your service."

Where to State the Policy

• Booking page (before they enter card)
• Confirmation email
• Reminder texts
• Salon signage
• Website FAQ

No surprises. Clients should know the policy before booking, not after.

What About Regulars?

Options:

• Exempt loyal clients from deposits
• Grandfather existing clients
• Apply only to new clients going forward

Handled well, regulars understand. Handled poorly, they feel insulted.

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The Cancellation Policy

Deposits work best paired with a clear cancellation policy.

Standard Policy

Flexible Policy

Which to Choose?

Flexibility builds goodwill but can be abused.

Strictness protects you but can feel harsh.

Most successful salons: Strict written policy, flexible human application.

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Handling Pushback

"I've never had to pay a deposit before."

"I understand. We've found that deposits help us manage our schedule so we can give every client our full attention. The deposit goes directly toward your service."

"What if something comes up?"

"Life happens! If you need to reschedule with at least 24 hours notice, your deposit moves to your new appointment. We're only strict about same-day cancellations."

"I'm a regular, why do I need this?"

"You're right, and I appreciate you! Our policy is mainly for new bookings. Let me make a note that you're a trusted client."

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Technology Setup

What You Need

Booking system that supports:

• Card collection at booking
• Deposit processing
• Automatic refund for cancellations
• Clear policy display

Payment Processing

Stripe or Square work well:

• Hold authorizations (temporary holds)
• Delayed capture (charge later)
• Easy refunds
• Low chargeback rates

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Measuring Impact

Track These Metrics

Before implementing deposits:

• No-show rate
• Late cancellation rate
• Booking conversion rate
• Revenue per week

After implementing deposits:

• Same metrics
• Compare at 30, 60, 90 days

What Success Looks Like

• No-show rate drops 50%+
• Booking conversion drops 5-15% (acceptable trade-off)
• Net revenue increases
• Stress decreases

If bookings drop more than 20%, your policy might be too aggressive or poorly communicated.

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Quick Decision Guide

You should probably require deposits if:

• No-show rate is above 15%
• You have long/expensive services
• You're fully booked (every slot is valuable)
• You've tried reminders and they didn't help

You might skip deposits if:

• No-show rate is under 10%
• Most clients are walk-ins
• Your area hasn't adopted deposit culture
• Competition doesn't require them

The hybrid approach works for most:

• New clients: deposit required
• Regular clients: trust-based
• High-value services: deposit required
• Quick services: card on file

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Deposits are about respect

Respect for your time. Respect for your business. Respect for clients who DO show up.

A client who won't put down €20 to secure a €100 appointment isn't a client who values your time.

Implement thoughtfully. Communicate clearly. Enforce consistently.

Your schedule - and your sanity - will thank you.

👉 Vinci 26 makes deposit collection seamless with built-in payment processing and automated reminders - protecting your time without creating friction.

Build something that's truly yours.