Most of us who work with small businesses or have closely followed data about SMBs over the years understand what the biggest self-reported negative SMB business drivers are.
Late payments have always been a big one. Difficulty finding and retaining skilled labor is another perennial SMB gripe.
And of course, no-shows are right up there in the headache hierarchy. Nothing drives a business owner up the wall faster than the client who skips out on a scheduled massage or the student who bails on a music lesson. Cancellation fees might help, but they do not fully plug the hole.
New data from InTandem, the new partner-facing platform from all-in-one SMB SaaS provider vcita, puts a number to the losses from no-shows. And let’s just say it’s an eye-opener.
According to vcita, citing data it has gleaned from 10,000 SMBs using its platform, client no-shows cost SMBs a staggering US$27 billion in 1H 2023.
That is a spit-take-inducing number.
And of course, the data helps make the case for vcita’s mission, which is to use technology to make life easier for SMBs.
“This data is a wake-up call showing that SMBs are still losing revenue and struggling to manage cash flow due to operational challenges that can easily be solved with technology, and our mission is to make this type of technology accessible to more SMBs,” said vcita CEO and Founder Itzik Levy.
76K No Shows
The inputs for vcita’s estimate of the cost of lost revenue to no-shows include 76,703 recorded no-shows during the first half of 2023, an average of 7.67 no-shows per business over the six-month period. The company used estimates of $107 as the average cost of a no-show, and the Small Business Administration figure of 33,185,500 U.S. small businesses. Put all these data in a blender with some ice and out comes a $27 billion lost revenue smoothie.
