For every service business

How much should a cancellation fee be?

Most small service businesses charge $25 to $75, or 25 to 50% of the booking. Here is how to set yours, and how to make sure it actually gets paid.

Early access · Free to use · 1.9% per payment

What no-shows cost service businesses

The booking is gone. The fee never comes.

$25–75is the usual flat cancellation fee for small service businesses1
25–50%of the booking is the usual percentage-based fee1
Proportionatefees that match your real cost are easiest to defend2
Sound familiar?

Setting the fee is easy. Charging it is not.

Most businesses pick a number, write it on the website, and never charge it, because asking a client for money after the fact feels awful.

Guacamole does the asking. You stay the one they like.

  1. Flat fee · best when your services cost about the same.
  2. Percentage · best when prices vary a lot.
  3. Higher for no-shows · up to 100%, since no notice means no chance to refill.
  4. Lower if you refill fast · if slots fill quickly, a smaller fee is enough.
How it works

Prevent. Protect. Recover. Refill.

01

Prevent

Reminders and easy rescheduling cut cancellations before any fee applies.

02

Protect

Each booking is secured with a card. Nothing is charged upfront.

03

Recover

Late cancel or no-show? Your fee is charged automatically.

04

Refill

Cancelled slots are offered to clients who want them sooner.

"But…"

What every business asks us first.

"A fee will scare clients away."

Clear, fair fees agreed upfront are standard across service businesses. Reminders and free rescheduling mean most clients never pay one.

"I'll just ask for it when it happens."

That is the step most businesses skip. Without a card on file, asking after the miss rarely works.

"My prices vary too much."

Use a percentage. Guacamole applies it per service.

"What if I set it too high?"

Change it any time. Keep it proportionate to what a miss really costs you.

Your number

What no-shows cost your business.

Set to typical numbers for service businesses. Change them to yours.

Lost per year

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Fees you could collect at your policy

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Estimate from your inputs. Prevented no-shows and refilled slots come on top.

Free template

Your cancellation policy, ready to use.

Copy it, change the bracketed numbers, and post it. Then let Guacamole make sure it actually gets paid.

Cancellation Policy

Your booking is reserved just for you. Please give at least [24] hours' notice to cancel or reschedule.

• [24]+ hours' notice: no charge.
• Less than [24] hours' notice: $[40] (or [25]% of the booking).
• No-show: $[40] (or [100]% of the booking).

A card on file secures your booking and is only charged under this policy. Emergencies are always considered.
The rules

Charge it the right way.

Agreed in advance

Only charge a fee the client accepted before booking. Guacamole records that acceptance.

Local limits

Some places cap fees in certain industries; Quebec, for example, caps restaurant no-show fees at $10 a person. Check your local consumer rules.3

Waive by mistake bookings

Not charging someone who books by mistake and cancels at once protects goodwill.2

A typical month

What it looks like for service businesses.

Example figures at an average price of $100. Prevented and refilled bookings are revenue you keep that would otherwise be lost.

Monthly statementExample
No-show fees recovered$1,280
20 no-shows prevented$2,000
9 bookings refilled$900
Guacamole fee (1.9% of $21,000 processed)−$399
Net gain+$3,781

You have nothing to lose.

$0to start
1.9%per payment, only when money moves
100%of our fee back on refunds
0contracts

Free to use. 1.9% per payment, only when money moves. Refund a payment and our fee comes back. No contract. See pricing

In short

Most small service businesses set a cancellation fee as a flat $25 to $75, or 25 to 50% of the booking price, and up to 100% for no-shows. Choose a flat fee if your prices are similar, a percentage if they vary. Guacamole collects whatever fee you set: clients accept it at booking, secure the booking with a card, and are charged only if they cancel late or miss. Free to use, 1.9% per payment.

FAQ

Questions service businesses ask.

What is a reasonable cancellation fee?

Usually a flat $25 to $75, or 25 to 50% of the booking, with up to 100% for no-shows.

Should I charge a flat fee or a percentage?

Flat if your services cost about the same; a percentage if prices vary a lot.

Is a cancellation fee legal?

In most places, when it is clear, reasonable and agreed in advance. Some industries and regions set limits.

How do I actually collect it?

Secure each booking with a card and charge it under your policy. Guacamole does both automatically.

What does it cost?

Free to use. 1.9% per payment, only when money moves. Refund a payment and our fee comes back. No contract.

Stop writing off missed bookings.

Early access is opening for service businesses.

Free to use · 1.9% per payment

  1. Bookedin: how much to charge for a cancellation fee
  2. InvoiceOwl: cancellation fees guide
  3. Snappy: Quebec's $10 restaurant no-show fee