The Discounted Package and the No-Show
You own a small one-room studio in Alaska. You sold a '6-facial package' for $540 ($90 each, a $60 discount off the $100 single-session price), paid in full, with a written policy on the receipt: 'Packages expire 12 months from purchase; 24-hour cancellation required or the session is forfeited.' A client has used 4 of 6 facials. She no-shows for her 5th appointment with no call; you waited 30 minutes and texted her. Two days later she calls, apologizes, says her car broke down, and asks to rebook. She also asks for a refund of the two unused facials because she is moving out of state. Separately, a walk-in asks whether you take tips on a package and whether the price includes tax.
1. How do you handle the no-show and the forfeiture clause?
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Apply the policy as written but exercise reasonable judgment and document it. The policy says a no-show without 24-hour notice forfeits the session. That is a legitimate term if it was disclosed at purchase and is not unconscionable - and it protects a one-room studio where an empty slot cannot be filled.
However, a first-time no-show with a plausible explanation is a relationship decision, not just a rule decision. A defensible approach: enforce the policy (the 5th session is forfeited) or waive it once as a courtesy and note that future no-shows will be enforced. Whichever you choose, be consistent and put it in writing. Do not silently ignore the policy - that teaches the client the policy is optional and creates a fairness problem with other clients.
Document: the appointment, the no-show, the text, the call, your decision, and the reasoning. If you waive, say so explicitly as a one-time courtesy.
2. She wants a refund for the two unused facials because she is moving. How do you calculate and decide?
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Start from what she actually paid and what she actually received. She paid $540 for 6 facials and used 4. The question is the value of the unused sessions.
A common and defensible approach: refund the unused sessions at the package rate ($90 × 2 = $180), not the single-session rate, because she bought the package and the discount was part of the deal. Refunding at $100 each would give her more than she paid per session and would effectively penalize you for her move.
Also consider the expiration term: if the package expires in 12 months and she is moving, the expiration is not the reason for the refund - the move is. Decide whether your policy permits refunds on unused sessions at all; if it does, the package-rate calculation is fair. If it does not, you may still choose a goodwill refund. Either way, put the calculation in writing, state the policy, and get her acknowledgment.
Do not refund the forfeited no-show session unless you decided to waive it - and if you waived it, be clear whether it counts as used.
3. Answer the walk-in's questions about tips and tax, and explain the business reasoning.
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Tips: tipping is customary but not required; if you accept tips, they are the client's choice and should be handled transparently. On a package, a tip is typically given per service or at the end, not baked into the package price. Decide your policy and state it consistently.
Tax: whether sales tax applies to services depends on state and local law; in Alaska there is no statewide sales tax, but some municipalities levy local sales taxes, and the rules on whether services are taxable vary. Do not guess at the register - know your local rules and configure your POS accordingly. If tax applies, it should be shown as a separate line, not folded silently into the price.
Business reasoning: clear, written policies on tips, tax, packages, expiration, cancellation, and refunds prevent exactly the disputes in this scenario. A one-room studio lives on repeat clients and referrals; consistency and transparency are the marketing. Document policies at the point of sale and apply them evenly.