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No Show Fees - Be Careful What You Sign

By
Real Estate Agent with Carolina One Real Estate

Today I did something that I hadn't done in about 8 years (when I got out of the Air Force).  I went to the dentist for a cleaning.  I know, I know, I need to go more often.  Part of the reason I waited so long was the lack of dental insurance and the other part is that I just never made it a priority.  It's one of those "there's no pain so I ain't worried about it" things.  I've also done some home cleanings with over the counter products.

After being "encouraged" by my wife for quite some time, I decided to make an appointment and go.  Of course the first thing you do when you go to a new doctor of any sort is to fill out all of their paperwork.  Most of it was pretty standard information, but when I got to the last page, a paragraph rubbed me the wrong way.  Now, unlike most people I read most of what I sign and if there is something with which I do not agree, I am not inclined to take the path of least resistance. This would be no exception.

The paragraph in dispute stated that in the event that I failed to show up at an appointment or if I canceled the appointment on the same day, a no show fee would be charged to me.  WHAT????  You think so highly of yourself and your business that you feel you can charge someone for doing nothing.  I don't think so...at least not with me. 

So, I calmly walked up to the front counter and said "I filled out the information that you need except for the last page."  The dentist said "Well I need this signed before we can do anything."  I said "we have a few choices in this matter.  A) I can line though the last paragraph on the page about charging me for you doing nothing, B) I can simply not sign the paperwork and you can clean my teeth, or C) I can walk out and we just won't do the cleaning."  She said "the reason we do this is so people will take the appointment seriously because if you don't show up then I've lost the opportunity of getting another person in your time slot and consequently loose money. 

I told her that I understood her situation but as a business owner that is the calculated risk that one takes.  As a Realtor, I have people "no-show" and cancel all the time, but I don't have the right to charge them money for a service that they never received.  We went back and forth for a minute and finally she agreed to line out the paragraph about the no-show fee.  We both initialed it and I signed the form to consent to the other information. I got the cleaning and a clean bill of health.  

The moral of the story is two-fold.  First, never sign something unless you read it.  You never know what you will get yourself into.  Second, never allow a person or a business to persuade you that you owe them money when no service has been performed.  Remember you are the customer!  Many businesses will push the envelope to see what they can get away with and unfortunately most people are unwilling to stand in opposition to a poor business practice. 

 

Michael J. Johnson

www.providingthelight.com

www.metrocharlestonhomes.com

Posted by

If you have a home anywhere in the Charleston Metro Area and would like to get more information about selling your home, please contact me for a free home evaluation. 

I also work with buyers.  If you are interested in more information about buying a home please contact me and I would be glad to meet with you or email you a list of homes.

 

Michael J. Johnson, Realtor, ABR

www.metrocharlestonhomes.com

843-817-5299

michaeljohnson@carolinaone.com

"Providing the Light to Guide You Home"

 

 

 

 

Comments (10)

Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest

I agree with the no show clause and wish I could implement one.

Mar 13, 2009 09:33 AM
Michael Johnson
Carolina One Real Estate - Goose Creek, SC
Metro Charleston SC

Good luck with that Adam.  I wouldn't pay it!

Mar 13, 2009 09:35 AM
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

I think they're quite common and they make sense to me.  Any business of that sort that fills all slots with paying customers and has a waiting list for available slots should be charging a no-show fee. Hairdresers, dentists, therapists, etc. all do it.  I would expect to be charged if I missed an appointment like that.

Liz

Mar 13, 2009 10:31 AM
Reba Haas
Team Reba of RE/MAX Metro Eastside www.TeamReba.com - Bellevue, WA
Team Reba, CDPE

This is the difference between "fee for service" and our higher risk/reward system of working on commissions.  Me-thinks, Michael, that there is a clear difference.  In our industry there are some firms that work this way and charge for viewing properties, or on a time based system. It's one of the beauties of being in an industry that does actually encourage competition - unlike what many people will try to purport, such as with the past lawsuit against NAR for non-competitive practices.

Be that as it may, I'm glad to hear that 8 years later your teeth were in healthy condition!

Mar 13, 2009 10:46 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Michael, I think no show fees certainly make sense with places like the Dentist. I would love to implement them in my business. I guess I do kind of. I wait 15 minutes if they don't show I'm outa there and will probably drop them as customer/clients. We need to set boundaries and stick to them.

Mar 13, 2009 10:49 AM
Michael Johnson
Carolina One Real Estate - Goose Creek, SC
Metro Charleston SC
Liz: would u be willing to give a restaurant your credit card so they could charge you if u skipped a reservation? No way I would allow anyone to charge that.
Mar 13, 2009 11:14 AM
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Michael ~ I didn't suggest this is a practice that restaurants use - it's not the same thing.  But maybe some very popular restaurants do.  You can eat there or not - your choice.

Liz

Mar 13, 2009 11:39 AM
Michael Johnson
Carolina One Real Estate - Goose Creek, SC
Metro Charleston SC

Liz - I don't think it is different.  The common denominator is a buyer exchanging money for a good or service.  You are right that you have the choice and my choice is that I will never pay someone for not performing a service no matter who they are.  But that's just me.  Thanks for commenting.

Reba - you said it right when you said "fee for service," not fee for non-service.  If you don't provide a service, for any reason, you shouldn't get paid.  FYI - my teeth thank you.  :)

Bryant - I think it is amazing that you would be willing to pay someone for not providing a service.  Is there time valuable?  Yes!  So is the patient/consumer's time.  Should I charge them a fee for the 15-45 minutes I usually wait past my appointment time.  Do they owe me a free service if they have not met the scheduled time?  Just a thought!

My point is this - you don't owe anyone anything unless you provide a service.  And, the service provider does not owe anything to anyone unless they are paid. 

Perhaps those that would like to implement no show fees should collect a credit card over the phone and charge for the appointment.  That way if anyone skips out, they are already paid. (dripping sarcasm implied) 

This will never fly because consumers will not put up with it and simply go somewhere else for the good or service. 

Thanks to everyone for thier input and opinion.

 

Mar 14, 2009 06:31 AM
Chris & Karen Highland
eXp Realty - Frederick, MD
Integrity, Experience, Enthusiasm!

Michael, I think by your persistence in removing that part of the agreement, you've answered the problem.  If they would have insisted on your signing that part of the paper, you would have probably found another dentist.  (I would have too.)  It shows that though they prefer to have this agreement, they ultimately don't want to lose customers.

Mar 18, 2009 03:59 AM
Michele Reneau
Certified Staging Professional (CSP) Elite Instructor - Summerville, SC
Realtor, GRI ~ Charleston, SC Relocation Experts Team

Michael-When we travel, we have a dining fettish.  We usually book at high end restaurants and they all clearly state they have a no-show fee.  We have to book with a credit card and you either book it with a card or you don't get the reservation. Needless to say, we always show up, but usually because we want to be there. I think its very inconsiderate of people that make appointments that don't keep them.  While we all know "life happens," I've known many people that just don't feel like it and don't even call to cancel.

Mar 28, 2009 02:45 PM