Entrepreneurship

Worry Less, Save More: Why You Need a Good Cancellation Policy

February 11, 2025

Hello, I'm KAT
With 15 years of experience as both a wellness practitioner and business consultant, I know exactly where you’re coming from—and how to guide you toward the thriving practice you envision.
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Do you get that awkward or anxious feeling when a client late-cancels? Do you worry more about losing your client if you uphold your cancellation policy than you priortize how much money you could save by honoring healthy business boundaries?

I’ve been there.

And in a business that’s only guaranteed to produce income when everyone shows up — no PTO, sick pay, or vacation pay — your livelihood can feel at the whim of your clients’ lives.

Download My Free Essential Cancellation Policy Guide ⤵️

The Ripple Effect of Last-Minute Cancellations

You know that feeling on Sunday night when you look at your schedule for the coming week: every slot is filled, your budget’s on point, and you head to bed without a worry in the world?

Then, Monday hits and your first client, Bob, texts he’s doubled over with food poisoning, things are coming out of every end and it’s not looking good. Poor thing!

You’re not going to kick a man when he’s down: you waive your cancellation policy.

Two hours later, Alexis frantically texts that her daughter is home sick and she can’t find a sitter. I mean, of course the kid needs her mom.

But you still haven’t found a client to fill the first spot, and now you’re down half your income for the day.

Wednesday, your sweet elderly client, Mable, who’s been showing signs of dementia, forgot to write her appointment in her calendar and she no-shows.

If that’s not bad enough, on Thursday, Jan, one of your most loyal clients who’s overloaded to the gills from heading up the burn unit of a hospital is so, so, so, sorry, but her boss called her into an emergency meeting at the same time as her appointment with you.

You’re frustrated and stressed out. 

But — and it’s a big but — you really kinda sorta did it to yourself.

Here’s the good news: that means you have the power to change it. 🙌🏼

What’s a Reasonable Cancellation Policy?

While there are definite exceptions where compassion should rein over enforcing your cancellation policy, your policy is there to honor your time through clearly stated expectations and healthy boundaries that eliminate stress and protect your revenue.

A reasonable policy typically includes:

  • 24-48 hours notice requirement for cancellations
  • Clear communication of the policy during booking
  • Fair cancellation fees (often 50-100% of service cost)
  • Allowances for true emergencies or first-time cancellations
  • Consistent but compassionate enforcement

A reasonable window gives clients a period of time when they can cancel without incurring a fee. That window also affords you some time to find another client for the slot.

If your client cancels after the window, your policy helps you recover lost wages rather than being subjected to issues that are outside your control including forgetfulness, inconsideration, and drama.

Yep, I said it. Some folks bring the drama with them.

More on that in a bit.

The Benefits of a Clear Cancellation Policy

Think of it as more than just a set of rules, it’s professional self-care.

Communication is key — in any relationship, right? And the practitioner/client relationship is no different.

A clear policy helps reduce your anxiety. It creates mutual respect and establishes healthy boundaries from the get-go. 

From the business perspective, your policy provides:

  • Protection of income by reducing no-shows and last-minute cancellations that can’t be filled
  • Ability to better manage your schedule and workload by having advance notice of changes
  • Time to potentially fill cancelled slots with waitlisted clients
  • Clear professional boundaries that help maintain a sustainable practice

From the client perspective, your policy offers:

  • Transparency about expectations and responsibilities
  • Flexibility to handle genuine emergencies or unexpected situations
  • Understanding that reasonable fees help keep your business sustainable so clients can continue receiving services
  • Motivation to keep appointments or give adequate notice, leading to better consistency in their treatment

Should I Include Any Exceptions in My Policy?

There are circumstances when exceptions make sense. And there are plenty of times when you’ll have to use discretionary judgement.

Let’s take a deeper look the cases at the beginning of the post and how you might handle them differently.

Food Poisoning Bob: This is Bob’s first cancellation. If he’s always been respectful of your time, then demonstrating understanding and compassion is more important for your longterm client/practitioner relationship than asking him to cover the cost of his missed session.

Can’t-find-a-sitter-Alexis: It’s always something with Alexis: her kids, her pets, her boss, her neighbor, her car, her IBS. This isn’t the only time she said she “couldn’t find a sitter,” and this time, she let it slip that her daughter got sick two days ago. Knowing she forgot to cancel her appointment within your given window, it’s time to draw the boundary and enforce your policy to protect your business against these repeat offenses.

Memory-Impaired Mable: You care about Mable a lot. She’s been a loyal client for years. You’re not a doctor and are in no position to diagnose, but there’ve been signs that her memory isn’t as sharp as it once was. With this being the second time she’s missed an appointment in two months, it’s time to have a gentle, compassionate conversation about the impact to your business and your need to enforce your policy going forward.

Overloaded Jan: You love her! You really connect with her; you laugh together, swap personal stories, she refers her friends, and she confides in you. She never means to disprespect your time, but her work priorities negatively impact your work and your bottom line. Engage in a conversation where you maintain compassion and your integrity around your policy, and you will likely engender her respect and understanding.

A Note on Drama

There are always folks (like Alexis) who seem to attract or even thrive on drama.

These are the clients that always have something come up at the last minute that takes precedence over their commitment to the time they arranged to receive your services.

For cases like this, your cancellation policy can act like a filter to sift these folks out and safeguard against the impact of their chaos.

They have one of two ways to go: they’ll either tire of paying the late fee and go elsewhere, or they’ll pull it together and honor their commitment.

Business Boundaries as Self-Love

When you reframe your cancellation policy as an act of self-respect, you’ll automatically reduce no-shows and late-cancels.

Enforcing it not only becomes easier, it acts like a lightening rod that attracts the right clients.

Remember: your time is valuable. Your expertise is valuable. And when you value your time, you become a magnet to clients who value it, too.

If you need help crafting a policy that can save you thousands a year, be sure to download my FREE guide! ⤵️

Real support from someone who understands the wellness world

Meet Kat Fleming

After 12 years of building successful wellness practices and guiding other practitioners, I've discovered that true success comes from nurturing all dimensions of yourself—not just your business skills. Through my holisitic framework, I help practitioners like you create thriving practices that align with your deepest values while providing the freedom and abundance you deserve.

Read more of my story