They throw off your schedule, they waste your time, and they frustrate the living heck out of you - that’s right, we’re talking no-shows and last minute cancellations. You don’t just treat the customers that come in through your doors like clients. You treat them like friends, taking the time to prep their visit based on any/all of their preferences. So, when these customers fail to pay you the same kindness in return, it can get under your skin, to put it lightly. Beyond all this, even more importantly - an empty gap in your calendar loses you money!
As a service-based business your appointments are your bread and butter. An empty slot in your calendar works to take money right out of your pocket. How much altogether you ask? Well that depends. Below are the 3 major factors that you need to take into consideration when determining: what do gaps in my calendar really cost my business?
1. Hourly Wage of Your Employee
When determining how much an empty slot in your calendar costs you, first consider--
How much the employee who was meant to service the absent customer gets paid hourly
How many hours that employee was devoting to service
Think about it - for the employee whose client just cancelled or never showed up, you’re paying that employee for realistically nothing. It’s not their fault, but every empty slot in your schedule comes paired with an idle employee who is eating away at your pockets for nothing in return.
2. Cost of Missed Service
What was that given customer coming in for? Hopefully they weren’t expected to spend a ton because whatever they were coming in for is unfortunately revenue your business will never see. For example, if you own a salon and a client who was coming in for a $40 haircut, $40 blowout, $10 wash and $10 brow wax ends up not showing - that’s $100 that was just taken out of your hands.
3. Number of Open Appointments per Month
Once you’ve figured out the above, next it’s time to zoom out and think about this on a grander scale. How often does this occur at your business? Are you frequently stuck with gaps in your schedule either from last minute cancellations or because times are slow? Are we talking once a week? A few times a month?
Once you’ve got yourself a rough number multiply that by the added costs above. That should give you a rough estimate regarding how much money open gaps in your schedule are actually costing your business per month.
Want a clearer picture of what gaps in your schedule are costing you? Use our free ROI Calculator to do the math for you at lightning speed. Stop guessing. Find out exactly how much open gaps in your schedule are costing your small business.