Deposits vs full payment for service bookings

The payment rule on a service is a statement about trust and risk. A deposit says: your time is reserved and so is mine. Full payment says: this is a product, pay and it is yours. Nothing up front says: I am easy to try. Each is right for some services and wrong for others.

Ask for a deposit when

• A no-show costs you more than the awkwardness of asking. Travel, a blocked afternoon, materials bought in advance.
• The booking is long, or far ahead, or on a day you could sell twice over.
• Clients are new to you. Regulars rarely no-show; strangers sometimes do.

A deposit between a fifth and a half of the price is common. The amount matters less than the fact of it: a client who has paid A$30 turns up.

Ask for full payment when

• The service is fixed in scope and price: a session, a class, a package.
• You would rather not handle money on the day.
• The price is small enough that splitting it is more admin than it is worth.

Ask for nothing up front when

• The price depends on what you find when you arrive.
• Your clients are existing relationships who pay on the day without fail.
• You are testing a new offer and want zero friction.

Say it in one line

"A A$40 deposit holds your time and comes off the total." "Paid in full at booking; reschedule with 24 hours' notice." "Pay on the day; cash or card." Put the line where the client sees it before they commit, and make the confirmation repeat it.

Refunds and the deposit

Decide what happens to the deposit when a client cancels with notice, without notice, or when you cancel. Write the three cases down. See How to set a cancellation policy.