You blocked the hour, turned away other bookings, maybe prepped materials - and then the text arrives 40 minutes before: "so sorry, have to cancel!!" A late-cancellation fee isn't punitive. It's the price of a reserved slot that can no longer be resold.
What businesses typically charge
- 50% of the service price for cancellations inside the window (typically 24 hours) - the most common structure.
- 100% for no-shows - no notice, no arrival.
- Flat fees (e.g. $25–$50) - simpler for lower-ticket services where percentages feel fiddly.
- Deposit forfeiture - if you take deposits, the late-cancel fee can simply be "the deposit is non-refundable inside 24 hours."
The only thing that makes a fee real
A fee you cannot charge is a fee you don't have. There are only two mechanisms that work for solo businesses: a deposit collected at booking or a card kept on file. Everything else depends on the client volunteering to pay a penalty - which the politest ones will and the repeat offenders won't.
Communicating fees without souring the relationship
Lead with the reason, not the rule. "Your time is reserved just for you" reads very differently than "NO REFUNDS." Show the policy at booking, repeat it in reminders, and give one grace pass for genuine emergencies. Clients don't resent policies - they resent surprises.
When to waive it
Waive freely for first offenses, emergencies, and your best long-term clients - and say why: "I've waived this one since it's your first." That sentence enforces the policy and builds loyalty at the same time. What you should never do is waive silently, because then the policy stops existing.
Fees that enforce themselves
Ivy keeps a card on file and applies your late-cancel or no-show fee per your policy - you approve, it charges.
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