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.
Nothing to pay to start. We earn only when money comes back to you.
The booking is gone. The fee never comes.
What no-shows cost service businesses.
$25–75
is the usual flat cancellation fee for small service businesses1
25–50%
of the booking is the usual percentage-based fee1
Proportionate
fees that match your real cost are easiest to defend2
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.
- Flat feebest when your services cost about the same.
- Percentagebest when prices vary a lot.
- Higher for no-showsup to 100%, since no notice means no chance to refill.
- Lower if you refill fastif slots fill quickly, a smaller fee is enough.
Prevent. Protect. Recover. Refill.
How it works.
Prevent
Reminders and easy rescheduling cut cancellations before any fee applies.
Protect
Each booking is secured with a card. Nothing is charged upfront.
Recover
Late cancel or no-show? Your fee is charged automatically.
Refill
Cancelled slots are offered to clients who want them sooner.
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.
What no-shows cost your business.
Set to typical numbers for service businesses. Change them to yours.
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.
Charge it the right way.
The rules.
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
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.
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.
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 start, no contract. See the pricing page.