Make a deposit when you make your reservation. This has already happened in restaurants, but the trend appears to be spreading to hairdressers, beauty salons and other grooming services, according to the NOS survey.
This is a nuisance for entrepreneurs: Customers who make appointments but then don’t show up. This not only leads to loss of revenue but also to inefficiency. It is not easy to close such a gap in a short time, especially with hairdresser and care appointments that are usually planned in advance.
According to Igor Payet, owner of Beauty Unlimited beauty salon in Amsterdam, this costs entrepreneurs a lot of money: “One missed customer per day can lead to tens of thousands of euros in lost revenue every year.”
To eliminate this problem, some salons prefer a deposit policy. This means customers must pay some of the costs upfront when making an appointment. “We see this especially in larger treatments such as dyeing and hair extensions, which take a lot of time and are difficult to change at the last minute,” says Gonny Eussen of the General Dutch Hairdressers Organization (ANKO).
Efficacy and doubts
Payet, who started using deposits about three years ago, finds it very effective: “Since I started working with deposits, I have almost no problems with no-shows.” It operates with a 25 percent deposit for new customers.
But not all entrepreneurs are convinced of this. Alisa van Vaalen is the owner of the Kleurkamer hair salon in Krommenie. Although customers do not come regularly, they are reluctant to work with deposits. She started her hairdressing business during the Corona period and was not bothered by the customers not coming. “People have been looking forward to hairdressers being open for a long time, so they really didn’t miss this appointment.”
However, this is now a regular occurrence so they are considering introducing a cancellation policy. “Something is holding me back, though,” he says. He wants to remain accessible and fears backlash from existing customers. You will also have to expect additional administrative work if you need to repay deposits.
smarter business
According to ANKO’s Eussen, many customers find a deposit policy acceptable as long as it is clearly communicated. “I don’t know if people are staying away more than they used to, but many entrepreneurs are working smarter and more efficiently since the coronavirus pandemic and the tight labor market in the industry.”
According to him, hair salons are fully booked weeks in advance and therefore salons need strict planning and the deposit arrangement is also in line with this.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
