Salon Deposits: When Do They Really Make Sense?

No-shows and last-minute cancellations can be incredibly frustrating for salon owners and stylist teams. Those empty appointment slots represent lost revenue and wasted time that could have been better spent on other clients. It's an issue that plagues many salons, so the idea of requiring deposits is naturally appealing as a potential solution.

But are deposits always a good idea? The conversation often gets overly focused on implementing deposits as a tool, rather than analysing the actual problem you are trying to solve - reducing no-shows.

Consider These Two Key Questions:

1. What steps are you currently taking to minimise no-shows and late cancellations?
2. How big is the no-show problem at your salon? What percentage of clients fail to show up?

One salon owner I spoke with was considering mandatory deposits for all clients after dealing with a frustrating no-show situation. She had everything set up to easily take automated deposits through The Salon App's platform for both online and in-person bookings.

However, when we dug into her data, it turned out her overall no-show rate was less than 1% over an extended period. While any no-show is aggravating, was it really necessary to charge deposits to 100% of clients when 99% were reliably showing up? There was also the concern that abruptly asking long-standing clients to pay upfront could damage those established relationships.

The Solution? Be Selective with Deposits

Instead of a blanket deposit policy, this owner decided to require deposits only for:

• First-time clients
• Any clients who had recently missed an appointment

This more targeted approach allowed her salon to avoid no-shows from new clients and higher-risk individuals, while not inconveniencing the vast majority (92%) of existing clients with good attendance records.

Deposits can be a useful tool, but implementing them salon-wide may be an overreaction if your no-show numbers are low. Consider the size of the problem, analyse your current preventative measures, and explore more strategic ways to utilise deposits for maximum impact and minimal client disruption.

Does your salon take deposits or have you opted for a different approach to tackling no-shows? We'd love to hear your perspectives and experiences! Share this blog post on Facebook, Twitter or Instagram and let us know your thoughts. Every salon owner has struggled with this issue at some point, so let's get a conversation going. The more we can learn from each other's strategies, the better equipped we'll all be to minimise those costly empty appointment slots. Don't forget to tag @TheSalonApp too!

The Salon App is an all-in-one booking, management and marketing software that helps you grow your salon business more quickly. Automated deposit features are a zero cost option. Book a demo today!