Introduction
A cancellation policy is a must-have for any service business, but especially for a field services company. Plumbers, HVAC, electricians, and more can benefit from having a simple, straightforward cancellation policy.
In this brief article, we’ll answer
If you’re just wanting to create your own cancellation template, you can click the box at the bottom of this article, follow the prompts, and have a cancellation policy that is specific to your business needs.
What is included in a cancellation policy?
A cancellation policy should be included in the terms of service that you give to a customer. In a nutshell, it should clearly outline the expectations of the owner and the client, when it comes to cancellations, reschedules, and holds. You need to answer the who, what, when, where, why, and how questions.
More specifically, you need to include the following guidelines as you write a cancellation policy
- Define the cancellation terms. What constitutes a cancellation? What constitutes a reschedule? What constitutes a hold?
- Explain the process for cancellation. What must the customer do to cancel an appointment? Call, email, submit a ticket on the website, fill out a cancellation form? What about for a reschedule?
- Give a deadline. Can a customer cancel more than 48 hours out without incurring a fee? If it’s less than 48hrs, what is the fee?
- Define the cancellation fee. If it’s still less than 48 hours warning, is that a different price than an hour before the appointment? Is it a flat fee or a percentage?
- Define exceptions to the rule. Is there a clause or clauses in your cancellation template about natural disasters, inclement weather, or other emergencies?
- Provide necessary contact information. How can a customer reach you? Again, is it via phone, email, chat, form, etc?
- Supply any other relevant information. How do you handle refunds on pre-paid cancellations? How would they be paid out and when? Are you holding yourself to the same standards, fees, timelines, etc if you have to cancel as the business owner, technician, or dispatcher?
- Reaffirm your commitment to them as the customer.
Once you’ve accounted for these questions, and have a rough draft ready, review the document with your team to make sure no edits are needed. After making edits, get final approval with your leadership team. It may even be worthwhile to have it approved by legal counsel before eventually rolling it out to customers.
Why do we need a cancellation policy?
If you’re reading this article, you’re probably already convinced that you need a cancellation policy template.
But if answering all of those questions above sounds like a lot of work, we understand. The point of a cancellation policy is to clearly outline the expectations of the business and the client in a work order.
The whole purpose is not to punish clients, "but to create stability for you as a business owner so that you can enjoy your life and show up for your clients in the best way possible," as Felicia, the Bad Therapist says.
You want to avoid the ol’ Karen calling to say, “I’m so sorry, Jim. I totally forgot our appointment was today in 30 minutes. I’m going to have to cancel. Are you free this evening or tomorrow though?”
Of course you’re not free tonight or tomorrow! Your last appointment is already at 6pm, so you’re missing dinner with the family. Plus, you and your team are booked out for the next 3 weeks, which you know Karen doesn’t want to hear. Karen is only thinking about herself.
Best case scenario, you find a time to reschedule in the future. Worst case, you lose that appointment slot and revenue because you have to refund her. With a cancellation policy, at least you can recover a portion of the revenue based on the fee charged for canceling.
Rather than wasting a lot of time with Karen back and forth, a cancellation policy resolves these issues quickly. You, or another skilled customer representative, can hold the line based on the policy, and find a solution that will minimize lost time, lost money, and lost energy.
Whether you’re an owner, technician, or front office staff – whether you’re in electrical, plumbing, HVAC, or another home service line of work – you need this appointment cancellation policy in your toolbelt.
How to write a cancellation policy
Thankfully, we’ve done the hard work for you.
You can write your own cancellation policy using the questions and prompts we've set up for you. Just click the box below.
Remember to be specific and clear in your language. Once you have it finalized, post it in multiple places, including your website and service level agreements.
