Saturday, May 26, 2012

The Controversial Late Cancellation Fee! WHY???

"Our office/studio/business has a 24-hour-cancellation-policy. We require 24-hours' notice to cancel any appointment or you will be charged for the missed appointment (or a portion of the cost of the service)."

This has become a very common conversation any person has these days while booking appointments whether it's at the doctor's office, dentist's office, spa, photographer, wedding location, Pilates studio, and many, many other types of businesses. The late cancellation fees also range anywhere from $25 to the full cost of the service or location fee: hundreds or sometimes thousands of dollars. I recently saw an endocrinologist/gynocologist who had a FIVE-DAY cancellation policy and the fee for canceling within FIVE DAYS was $200! TWO HUNDRED! At first I was totally taken aback and almost didn't schedule the appointment--it seemed outrageous! However, I decided to schedule with her anyway because of what I had heard about her--and I didn't regret it. She's the best doctor I've ever seen. One appointment with her changed my life--and she spent three hours with me! She valued my time and I valued hers. I also made sure to be there on time and prioritize that appointment! I knew going into that business "relationship" that I would be held accountable for a missed appointment and I agreed to the terms

But... Why has it suddenly become so commonplace? Why is it necessary? Why can't the business take it on a "case by case" basis? Is it a greedy way for businesses to enforce payment? What about emergency situations? And... a question I've heard from many of my Pilates students over the years: "Why can't an exception be made for ME...this one time!?"  Well, in this blog post I'm going to share with you the reasons these policies exist, why they are important, whom they protect, and why VALUE and RELATIONSHIP play a big role in the necessity for this type of agreement.


Why the Policies Exist...
Most businesses that have these policies make their money on an hourly basis. Forget salaries or benefits or job security. Our world is moving more and more toward AT-WILL EMPLOYMENT and CONTRACTED SERVICES. You don't work, you don't get paid. Gone are the protections and guarantees and "job security" seen in days of old. So, for hourly workers a 24-hour cancellation policy is as much job security as hourly workers/businesses receive. That's it. As lovely as people are: people forget and things "come up". Unfortunately, most people wouldn't pay for missed appointments without the policy/contract holding them to their word. Especially in this "recession-mindset" our world is caught in these days, pinching pennies has become something of a necessity. But when does it go too far? I've seen in many cases  some individuals will show up for a Pilates session or class when they're extremely sick and contagious: in order to avoid being charged for appointments. I've also seen the reactions of other students who are forced to participate next to a sick individual. It's not chummy.

Why Showing Up Sick Is Not Okay...
 In my experience over the years, most students who have a cold or the flu will show up for their session even if they are sick, sometimes very sick. It's not a good idea for two reasons. One, a sick person won't feel good during or after the workout. With illness, working out hard can slow down the healing process and spread germs in all directions. The second is: your teacher really does not appreciate working with sick individuals. Someone who doesn't get paid unless they work does not want to be sick themselves. Having students expose them to germs threatens their ability to teach. If teachers don't teach, they don't get paid--no paid sick leave in this industry. True, no one likes to pay for a missed appointment but the teacher now loses a day or more of income because a student made them sick. A whole day or more of lost pay is quite significant. It seems if the student is prepared to pay for the session when  well, then maybe the same should be true if not? These policies exist for one simple reason: the business requires payment to remain open and pay their teachers. It's not the business "being greedy" it's a necessary measure to protect the staff and the business itself from going belly up. The funny thing is--there's a SIMPLE solution here that most students don't think of...

THE SOLUTION: Honoring Agreements...
IF the student isn't feeling well or think they might have a conflict, calling the day BEFORE to EARLY CANCEL the appointment is the best solution. Then, if the student is feeling better by the next day--calling in to find out if the teacher is still available is ideal for both parties. Chances are she/he might be and they'd be thrilled to teach (now that the student is feeling better!). If they're not, I'll bet they'll try to find a time for this person because they were so respectful and considerate! Also, that way if the student is feeling worse they already canceled their appointment and... won't be charged for a missed session! Sometimes we just wake up feeling poorly and can't anticipate it--on those days as much of a bummer as it is--the student will be required to pay. When that happens, it's important to remember the contract/agreement in place between both parties--agreeing to the policy. A signature accepting the terms of the relationship is usually present. Respect yourself and your teacher by holding true to your agreement.

Value & Respect...
Once I heard (actually heard the phone message) of one student calling to ask for a "courtesy" EARLY cancellation because "I'm a valuable and long-standing customer and if you value my business you won't charge me." We'll call that customer Veiled Threat for future reference.  However, Veiled Threat has made their intentions in the business relationship clear: You (business) are at my disposal and I pay you to exist for me at my convenience AND if you don't give me what I want or make me more important than other people then I will take my money elsewhere. (Does anyone else feel like they need a bath?) That business rolled its proverbial eyes and kept dealing with that customer but charged them nonetheless. If you're one of those people let me give you one big tip: STOP BEING ONE OF THOSE PEOPLE. It's also my guess that the people who provide a service for these types of individuals will probably resent them and seek to avoid giving them the best service they possibly can, even subtly. It happens--believe me. Another teacher I know dealt with the situation differently, "You won't be charged for this session but I'll have to ask you to find another teacher. Thank you for your business."  Also happens. That's called: Calling The Bluff. Veiled Threat will probably go leave a nasty YELP comment or two and then ruin their own reputation in the process. Think neighborhood Pilates studios don't communicate with each other? Or doctors? Or aestheticians? Think again.

Where Exceptions Can Be Made...
If we consider that ALL business transactions are relationships then we might respect the other party as much as we would want to be respected. Ah--the nasty GOLDEN RULE rears it's ugly (much forgotten) head. Doh! Paying a business for their expertise (read: service) does not give us the excuse to believe that they are at our disposal (or we theirs). It's a two-way street and that needs to be remembered and protected so the VALUE of the relationship can last long-term. But, this one can be tricky to navigate. After all, emergencies do crop up and when they do it can be a delicate situation.True emergencies happen pretty rarely though. When they do, and speaking only for my own business: I will offer a student a "make-up" session and will allow an early cancel for the missed appointment. Many teachers and studios do not. It is up to each business to decide where to draw the line. Some are more strict than others and for different reasons. Really understand where the studio stands when you sign up to work with that studio. If they say they enforce the policy, they will. Having realistic expectations about the situation in advance helps keep everyone on the same page.


ACTUAL Emergencies: A parent, spouse, child, or self is in the hospital. Examples: child birth, car accident, broken limbs requiring cast or x-rays, serious illness, sudden life-saving surgeries, and fatalities. Basically, if you or your immediate family are in the hospital or worse it's the real deal. Exceptions can be made.

Examples of NON-Emergencies: Headaches, cold or flu for self, child, or pet, etc. bad traffic, repairman/cable-guy/pest control services person is at your house, didn't "feel like it", acne, hang-overs, flight got canceled or delayed, favorite TV show got canceled, important phone call, forgetfulness. NOT REAL EMERGENCIES. These happen to EVERYONE and they are NEVER one-time things. No exceptions will be made.

When the Teacher Cancels...
Another thing I've frequently encountered over the years is, "But my teacher didn't give me 24 hours' notice before canceling my workout!" My response to that is: Were you charged for the workout? The answer is always no. The teacher may have late-canceled but the teacher isn't getting paid either. Most of the time, in these cases a substitute teacher is offered so the workout can proceed regardless. In situations where it doesn't happen, just remember the teacher is usually taking sick leave  or dealing with an emergency (without pay). They don't like it anymore than the student does, trust me.

Put Yourself in Your Teacher's Shoes...
The other day I was enjoying some quality with my partner. Because I knew I only had a brief time with him, part of me remained alert even though I had set my alarm so I would remember to give myself enough time to get to the studio on time to teach and be mentally ready. So, the alarm goes off and I ended time with my partner early to get to the studio and be ready to.... WAIT. Wait for a student who never showed up (or called to let me know they wouldn't be coming). My partner wasn't happy about it when he heard. "We could have had more time together! Does this person realize that they just wasted an hour of your time? You better charge them for that session! That's not fair to us!" While I agree with him I also have to handle the situation with as much finesse as possible for the sake of my student (who I very much enjoy working with) and for the business (which has bills to pay & overhead), my own self-respect, and our of respect to my partner (whose time was also affected).


What is FAIR?
And now comes the odious task of reminding the student/client of the 24-hour-cancellation policy. Never a fun conversation... Many students in this situation ask for a "make-up session"? Which is now two hours the client would receive for the price of one...and they're getting a bonus session because they... forgot? My daughter's school wouldn't reward her for forgetting her homework. Quite the opposite. Even as children we learn these simple lessons. So, why do we expect that kind of treatment as adults? It doesn't encourage that person to value the time of the teacher. It allows that person to continue forgetfulness. Because now they will think they can just do a "make-up" session. Yes, but--at the teacher's expense. What we have to remember is that we are all more alike then we are different. If we're asking (or demanding) something--chances are other people are too. It's usually at least 2-3 sessions per week (or more) that ask for reschedules, exceptions, and special treatment. While it may be a one-time thing on the students' end for the teacher and studio alike: it's constant. So, if you're that person who asks for the "one-time" exception remember that you are not the only person that business serves.

Try Working For Nothing...
If it was your time would you want to be paid? How would you feel to have set aside time for someone who didn't bother to show up or call and were expecting payment for that hour? Now imagine when you ask to be paid for your time, that person threatens to withdraw their business? (Also happens--some of them are blatant threats and will leave.) What if you went into your job one day and the boss said, "We're gonna call this a "make-up day". No pay or benefits for you today! Would you be A. Kind of annoyed B. Really pissed or C. Wondering how you'll pay your rent!? or D. All of the above? Would you have a good attitude about that? Would you want to continue working with or for that person?

Relationships are built on mutual respect. It's important for the teacher/studio and student to understand what is a real emergency and what is not and that respect means valuing the other persons' time. I'm sure I probably passed the "lecture-y" point a long time ago but-- remember the Golden Rule. No one wants to be coughed on, not paid, threatened, or disrespected.

I scheduled that appointment with my doctor, agreed to her $200 dollar and 5-day cancellation policy and therefore if I choose to cancel then I'm prepared to pay for her time whether I can make the appointment or not. Her time is valuable and she helped to change my life. Pilates also changed my life. It has made me fitter, stronger, taller, and better looking. How much is that worth? To me... it's extremely valuable both as a teacher and a student of the work. It's worth every penny.
--Eve White