How to prevent losing money because of missed appointments - calculated by Toni Milun

Do you own a hair salon, a healthcare clinic, or maybe work as a tutor? Have you ever wondered how much money you lose when a client books an appointment and does not show up?

Did you know there is a way not to lose that planned revenue after all?

Let's take Marija, a hair salon owner, as an example. This morning she came to work and checked the schedule. It looked like a good day: all five employees had full calendars, and each of them had five to ten clients. The revenue would be enough to pay salaries, suppliers, taxes, and contributions. She was happy that she would finally be able to send her employees to the training they had wanted for a long time. There would even be enough for those new clippers.

And then, a cold shower: as many as four clients did not show up. Only one let her know that something had come up, while three did not say anything at all. They simply forgot. Yesterday and the day before were good days, with only one client missing her appointment each day. Marija had hoped that the number of missed appointments had gone down and that they would not happen anymore.

So she takes her notebook and, for the first time, does an analysis: she counts how many clients have not shown up this year. The result is discouraging: an average of three no-shows per day. If a treatment costs around 25 euros, that is a loss of 75 euros a day. That is around 1,900 euros a month - the total gross salary for one more beginner employee.

Just like Marija, most entrepreneurs forget to calculate how much money they lose each month, on average, because clients do not show up. How do I know that? Over the past few days, I asked people I know who work in service businesses: a hairdresser, an acquaintance who tutors math, a neighbor who owns a nail salon, a friend who owns a massage salon, and a dental clinic. They can all be divided into two groups.

Some have automated online appointment booking, as well as reminders for clients before their treatments. No-shows are very rare.

Others do not use any online booking system and rely on clients remembering to book on time and show up for their appointment. They often experience clients not showing up. How often? They usually do not know, but their estimates are 5%, 10%, and sometimes even more.

Our Marija considered personally sending WhatsApp reminders to clients the day before, but realized that it would take her an hour a day that she could use much better.

There are two solutions for your and Marija's problems: the first is an automatic reminder, and the second is accepting advance payments. You can easily introduce both with the Zoyya app.

1. Solution: Automatic reminders with the Zoyya app

Instead of wasting time and sending messages to clients yourself, why not use an app that will do it automatically for you. The day before the appointment, every client receives an automatic SMS or email reminder with the exact time and all the details. The forgetfulness rate drops close to zero.

2. Solution: Accepting advance payments through the Zoyya app

The second solution is an advance payment, meaning payment in advance. When a client pays part or all of the treatment in advance and also receives an automatic reminder, cancellations become almost nonexistent.

You can set the required advance payment amount through Zoyya however you want. It can be 10%, 50%, and some businesses choose 100% of the treatment price. In case of an unjustified no-show, the amount paid in advance stays with the salon, and if the client comes, they only pay the remaining difference.

As soon as a client pays for a treatment, or at least part of it, they will make an effort to come at the scheduled time. Human psychology works that way: we do not want to lose our money. If we have paid for a service, we will use it.

Some entrepreneurs are afraid and say: if we introduce advance payments, we will lose clients.

The experience of those who have introduced them says that you will not. Buyers of your services care much more about something else: that you are professional, that you deliver quality work they have paid for, and that you are kind to them. If you stick to those principles, no advance payment will drive them away.

Besides, you do not have to ask all clients for an advance payment. You can charge it only to those who are often late or only to new clients.

You can communicate it that way too - tell existing clients that you have introduced advance payments, but that you are giving them a grace period of two or three months during which you will not charge them. You will apply the advance payment immediately only to new clients and to those who have not been showing up regularly at the agreed time.

I will share my own experience from when I was teaching math. I found a model for raising the price while keeping existing clients satisfied.

I would raise the price only for new clients, and tell all existing ones: I have a new price, but for you, as a sign of good cooperation, I am giving a discount until the end of the semester - I am keeping your current price. Then, in the new semester, I would start charging them the higher price.

Do you know what their response was? - Thank you for giving us a discount.

You can communicate the same thing to your clients: "Sometimes clients do not show up for their scheduled appointment, and during that time we still have to pay employees. We have decided not to reduce employees' salaries or raise prices, but to introduce advance payments. That way, we can improve quality while keeping the same price."

Why we sometimes do not show up for scheduled appointments as clients

We all have obligations and sometimes forget scheduled appointments. Sometimes circumstances get in the way: we have to stay longer at work, or a child gets sick. Still, some people are a little more relaxed and say: I am tired today, I do not feel like going to that scheduled cosmetic appointment or math lesson.

I was recently present when a friend was canceling a scheduled medical examination in advance. He is a schoolteacher whose schedule had changed, so at 9 in the morning he decided to call a private healthcare institution to cancel an appointment scheduled for noon.

The examination was covered by supplemental health insurance. I was having coffee with him at the time and told him: "I do not think that will work."

Of course it did not, because customer support explained the rule to him: scheduled examinations can be canceled no later than 24 hours in advance - never on the same morning. That scheduled examination was counted as completed, and he no longer had the right to use it through his insurance.

I will admit it on his behalf - he knew several days earlier that he would have a different schedule that day, but he thought it would be enough to call a few hours earlier.

My friend, like many people, does not think like an entrepreneur. He believes that it is enough to call an hour or two earlier to say he will not come. He does not see that he created a gap of 30, 60, or more minutes for the entrepreneur, while the doctor still has to be paid for the time during which no service was performed. In addition, some treatments require additional support staff who also have to be paid. That makes the cost of a no-show even higher.

What if the client paid an advance payment and got sick that day

You can independently decide by what deadline a client can cancel the appointment and receive a full refund of the advance payment. Most businesses choose 24 hours before the appointment.

Still, let's be realistic: sometimes clients really will get sick on the day of the scheduled treatment and objectively cannot come. OK, there will also be those who simply do not feel like coming to the treatment and will say: I do not feel well and cannot come. All of that is realistic, and it is important to know how to react properly in such a situation.

Some entrepreneurs have chosen the following strategy: once a year, a client has the right not to show up for a treatment, and the advance payment will remain valid for the next appointment. This shows consideration and understanding, and clients will appreciate it.

You can, of course, choose the model that feels best for you. After all, you know your clients best.

Who benefits especially from introducing advance payments

You have a seasonal business by the sea. The Adriatic is beautiful, tourists like to swim during the day and go out in the evening, but when rain is forecast, guests want something else: a massage, a cosmetic treatment, private training, and so on. Then tomorrow comes: rain has fallen, all appointments are booked, and you are looking forward to the revenue. Everything started according to plan, but by noon the weather has already cleared up. Guests who spent the morning in their rooms want to go outside, to the beach, and they no longer care about that cosmetic treatment. Of course they will not come to the treatment; they would rather go swimming. Their additional argument is: well, we are guests, and everyone knows the guest is always right.

Advance payment steps in and saves the situation. A guest who has paid 50% or even 100% in advance will not give up their money so easily.

Be wise, protect your business and your employees, and introduce advance payments.

Why have online appointment booking

When I come to a hair salon or for a massage, I want the employee to focus on me, not answer the phone while massaging my back. Interrupting a massage does not leave a professional impression. Hiring someone to answer the phone is a great option, but most salons cannot afford it. Maybe larger ones can, but certainly not everyone.

I will tell you about two situations I personally had at hair salons.

The first: I came to a hair salon, and the hairdresser looked at me in confusion. Another client was already sitting in his chair, ready for a haircut, and there was no room for me. I checked my calendar - I had entered that exact appointment. The hairdresser looked at her notebook and saw several crossed-out names and mine, which was not crossed out, but with all the writing, erasing, and scribbling, she had not noticed my name. In notebooks like that, it is easy to overlook who canceled a haircut and who remained on the list.

I had to leave without a haircut. Although the hairdresser was kind, the feeling I left with was not pleasant.

The second situation: I usually book a new appointment right after a haircut. But sometimes I am not sure when I will travel or whether I might have to stay longer at work, so I say: I am not sure when I will be free, I will let you know. That happened to me exactly three weeks ago.

When my hair had already grown out, I looked at my calendar - there was no appointment entered, and I remembered: I had not arranged one. No problem, I will call them tomorrow and make a reservation. But tomorrow came - obligations from morning to night, and when I finally wanted to call in the evening, I realized that working hours were over and nobody was at the salon. I put a reminder in my calendar for the next day, but then I forgot again. And so several days passed, while my hair kept getting longer.

One thing would have saved the situation here: online appointment booking. I can book a new haircut, massage, or medical appointment at 5 in the morning or 10 at night. The app is always available. I open it, check available times, compare them with my schedule, and book when it suits me.

On the other hand, the service provider immediately sees in the app who has booked an appointment. There is no need for phone calls and interrupting a massage or haircut just to compare schedules. There is no wasted time and no double booking.

And young people will be very grateful. They like to solve everything in 2-3 clicks, without too much talking.

Gift card

We all express love in our own way, and it is said that there are five basic love languages: words of affirmation, quality time, gift giving, acts of service, and touch. Of all of them, giving and receiving gifts means the least to me.

That is exactly why I find it extremely difficult to choose gifts for birthdays or Christmas. It used to cause me stress and take a lot of time.

Do you know how much simpler my life has become now that gift cards exist? I go online and find something that will make someone dear to me happy, whether it is a massage, education, a cosmetic treatment, or something else. Instead of long thinking and even longer searching, I get to a nice gift in a few clicks. I believe many people will recognize themselves in this - especially us men.

The gift card in the Zoyya app is especially well designed because it lets me pay an amount and enter the email address of the person the gift is intended for, for example my mom for her birthday. A code is created automatically and sent to my mom's email, and she can then use the code online and book an appointment. And if my mom really does not want to arrange the appointment online - no problem. She can come to the selected salon and show the gift card in the app. Everything is written there, including the date by which it should be used.

Using gift card apps increases loyalty and helps clients stay with us.

How much does it cost

Let's imagine that our Marija decides to send reminders to her clients by mobile phone herself. For her 30 or so messages, she would probably need an hour a day, and we should also take into account possible mistakes: mixing up names, appointment times, entering a wrong phone number, and so on. Everyone who does similar work knows that correcting a mistake takes several times longer: noticing where we made a mistake, then sending an apology message.

Now let's imagine that she used the Zoyya app and chose one of the available plans - the business plan. It offers her free online appointment booking and email reminders. Maybe not all clients will start using that service right away, but even if half of them accept it, that already saves a huge amount of time. Phone calls and schedule coordination are reduced. The price Marija pays is 24 euros + VAT per month. You can also pay less if you pay for the entire year upfront, which gives you one month free. And if the reminder saves you just one appointment or your listing on zoyya.com brings you just one client - you have already paid off the subscription investment for that month.

If you decide to give your business growth a stronger push, the advanced plan is suitable for you. The price is 44 euros + VAT per month, and again, by paying for the whole year upfront, you get one month free. This model is truly advanced because it additionally includes: fiscal cash register, advance payments, gift cards and packages, loyalty program, and much more.

The world is changing fast. Your future, and actually already your current, clients are digitalized. It is time for you to leave your notebooks behind and digitalize your business with the help of the Zoyya app.

Article author: Toni Milun

Toni Milun is a mathematics professor, financial vlogger, and educator who, through the projects "Where maths is fun" and "S Milunom do milijuna", has spent years bringing mathematics and financial literacy closer to a wide audience. He is the winner of numerous awards, co-author of the bestseller "Budi financijski fit", and organizer of the well-known Financial Literacy Conference, which has been held for three years.