6 Easy Ways to Grow Your Salon or Spa Business

6 Easy Ways to Grow Your Salon or Spa Business

by | Sep 19, 2017 | Client Attraction and Retention, Increasing Profit, Salon and Spa Business Performance, Salon and Spa Marketing

It’s not good enough to just go from day to day making a basic living from your salon or spa.  Each day should be taking you a little closer to the business you dreamed of having, but that doesn’t happen by accident.

As the saying goes… ‘If you’re not prepared to change what your doing, don’t expect anything else to change’.

Having said that, you don’t need to make the process any more difficult than it needs to be.  Good, productive and profitable changes can often be achieved in the simplest of ways.  You don’t need to be an expert in ‘everything business’ to steadily increase your business growth and profits.

In this article, we’ll take a look at 6 easy ways to make worthwhile changes to your beauty business that will result in positive growth.

Get Your Team Excited About Retail Sales.

Let me tell you, this has to be one of the fastest way to add great profits to your bottom line.  Extra profits means you can invest in more equipment, better training, staff incentives, updated décor, more retail stock and a host of other great things that are most likely on your wish list.

For the same amount of time invested, retail sales will return 3 – 4 times more profit than delivering most services.  That’s pretty amazing don’t you agree?

To increase retail sales and get your team motivated, you need to ensure:

a. Team members are all using the product your stock.

b. Team members all have a sales target to work towards.

c. Team members have the training and knowledge they need to talk to clients about the product benefits.

d. The salon has the right product in sufficient quantities to generate sales.

Have a Marketing Plan

If you want new clients to find you and existing clients to stay loyal to you, then you absolutely must have some kind of marketing plan.  It’s doesn’t need to be flash or fancy, but it does need to be written down and applied consistently.

You may well have the best treatments, delivered by the best staff members, at the best prices, but if no-one knows about any of it, then you won’t sell anything.  It’s not good enough just to be great at what you do – no matter how many times you may see this said on social media!

You not only need to be great at what you do, but you must make sure people know about it.  After all, you can’t sell a secret.

Reward Client Loyalty

There is almost nothing as important to your business as retaining the loyalty of your clients.  After working with a truck-load of salons, I’ve realised that in nearly every instance, organic growth  was pretty great, however the reason the businesses weren’t growing was poor client retention.

These days, your clients have a ton of salons and spas to choose from.  Organic loyalty is pretty much dead in the water.  So, to keep your clients returning, you need to dangle the proverbial carrot in the form of a loyalty reward.  It will provide that extra incentive for your clients to return to your business to collect their reward points rather than trying out the salon or spa down the road.

Create a Benefits-Based Service Menu

When you think about it, the first thing many prospective clients come across is your Service Menu.  They usually head straight to your menu to find out what you offer and how much you charge.

If your menu is constructed poorly, the client will only focus on the price of your services and that’s not how you want to be judged.  Instead of the price, you want your clients to focus on the benefits they’ll receive if they have your treatments.

There are other factors with your printed menu that need to be considered also.  Colours, print size, font, categories and layout are all important to ensure easy readability for your readers.

A well-constructed Service Menu will help you sell services to your prospects and clients without you even being present!

Work Towards Attracting Only Premium Clients

Do you ever feel like the clients who come to your salon or spa are exactly the opposite of the clients you really want to work with?  Believe me, you are not alone.  Most salon or spa owners will say that they want to attract a certain type of clients (big spender, loyal, refers others) but instead seem to always attract clients who are looking for a bargain, won’t purchase retail and never re-book.

The truth is that in most instances, the salon’s own marketing is to blame for this.  The wrong clients walk through your salon doors because inadvertently you are asking them to.  But the good news is that you can turn that around and become much better at attracting the premium clients instead.

This can make a massive impact on your business.  Imagine finding clients who value your work, pay your prices happily and buy the retail products you recommend.  Now that would make going to work each day pure bliss!

Increase Your Service Prices

Be honest!  How long has it been since you’ve put up your prices?  If it’s been over 12 months then you are due to have a price increase right now.

If you continue to hold off, eventually your profit will dwindle due to increasing expenses, and this means less for you.

A small regular price increase, while not being heartily welcomed with open arms by your clients, is expected and accepted.  The problem occurs when all those small price increases are held off resulting in a massive price increase all at once.

And there you have it.  6 simple and straightforward ways to grow your salon or spa business.  Why not get started on implementing them straight away?

Get More Done With Less Stress – Make a List

Get More Done With Less Stress – Make a List

by | Sep 4, 2017 | Salon and Spa Business Performance, Staff Management, Recruitment and Retention

I’ve got to say, I’m a big fan of making lists!

I have all kinds of lists in my life. Grocery lists, business lists, packing lists, to-do lists and the list goes on!

But seriously, making lists in your business can help you to grow in so many ways. Not only does writing something down generally ensure it doesn’t get forgotten, but it also helps to ensure that others do the things you want them to do, the way you want them to do it.

If you think making lists isn’t a sophisticated business tool, then think about those professions that wouldn’t think of not using a list to ensure a positive outcome.

  • Astronauts use a checklist before lift-off. Every dial and every switch has to be in the right place at the right time and what better way to ensure this happens than to have a checklist?
  • Pilots use a checklist before take-off just like the astronauts.
  • Theatre staff use lists to prepare for surgeries so that everything that goes in comes out again.

Do you see what I’m getting at?

Lists make difficult jobs easier and ensure a much higher rate of success, so let’s look at how a few lists could help you in your business too.

Procedure List

You might also refer to these as treatment protocols, but regardless of what you call them, they are just a glorified list. Like a good menu, this list lays out what has to be included in your treatments.  One of the most important outcomes of using a procedure list is consistency.

Consistency in the delivery of your treatments equates to happy clients and this is because every time they return to your salon or spa, they’re going to get the exactly the same inclusions in their treatment as the time before – nothing more and nothing less.

Clients love consistency, even more than they love extras, and when they don’t receive it, they get cranky. So cranky, in fact, that they often leave and go elsewhere. And all because they never received the same treatment, delivered the same way, twice.

Many salons and spas make the big mistake of providing discretionary services. These discretionary services are the little extras that aren’t generally included but are sometimes provided on a whim. And while the client loves receiving these extra bits of pampering at the time, they don’t love it when they don’t get included next time they have the same service. As a matter of fact, they feel quite cheated and that can lead to all kinds of unwanted trouble.

So, to avoid this happening in your business, make a list that employees use when delivering services and make sure that everyone sticks by it. No more and no less at every visit will keep your clients happy and returning.

Delegation List

Delegation is any boss’s best friend. When done well, it can free up many valuable hours each week for more important activities. However, there is definitely a good way and a not-so-good way to delegate to employees.

The not-so-good way is to simply verbally tell your employee what you want them to do. This technique generally results in a disastrous outcome because not enough information is relayed in a written format

For delegation to be effective, employees have to understand clearly what they need to do to get the job done well. This involves, you guessed it, making a list.

By breaking a new job down into bite-sized pieces on a list, employees can generally tackle jobs that they may never have done previously and do it reasonably well. The devil is always in the detail, so make your list as detailed as necessary so that an employee knows exactly what to do to get the job done to your satisfaction.

Time Management List

This is one of my favourite lists. It’s my daily to-do list and when I use it, I get much more of the important stuff done each day instead of pottering about doing the easy jobs that could have waited. It’s human nature to put off doing the hard stuff first, but if you want to fit more of the important stuff into your day, start with a list.

The secret of an effective to-do list is prioritising the items on it so the important jobs get done first. Without this, human nature kicks in and you spend the time being busy but not being effective.

Recruitment List

If you’ve ever had to hire a team member, you know that it can be a bit stressful to say the least. If you stuff it up and hire the wrong person, it will definitely impact on your business and so you want to avoid that at all costs.

One way to ensure you hire the right person for the job is to have a recruitment list. This list needs to include all the must-have skills or qualities that the successful applicant must have as well as the desirable skills and qualities that would come as a bonus.

If you make and use a recruitment list, you’re much less likely to get swayed by other factors during the process which could result in employing someone you like instead of someone you need.

Cleaning List

I love cleaning lists for salons and spas. A good cleaning list ensures that all the less-than-fun jobs get shared out evenly.

As a previous salon owner, I know how frustrating it is when employees leave at the end of the day and the salon is left dirty or untidy. Particularly when it was left up to me to clean it.

It didn’t take me long to figure out I needed a list that would cover all the cleaning jobs that had to be done before everybody took off for the day.

If you don’t like the idea of having ‘Cleaning Lists’ try calling them ‘Accomplishments Charts’ – they’re really the same thing but with a more positive spin.

All these lists have worked wonders for my sanity over the years. I recommend you try making lists in your business. Not only will you get more of the important jobs done, but you’ll be much less stressed from worrying over the little things that often get forgotten.

Making the Most of Your Retail Sales

Making the Most of Your Retail Sales

by | Aug 28, 2017 | Salon and Spa Business Performance

Today’s salon, spa or clinic has changed dramatically from 30 years ago.

How?

Back then, a beauty biz could turn a healthy profit just from supplying services alone. As a matter of fact, retail was often considered the cream on the cake rather than an integral part of the profit formula.

How things have changed! In today’s world of IPL, LED, Laser, Microdermabrasion, Microcurrent, RF Therapy, Ultrasound and Specialised Facial Equipment just to name a popular few, it’s a much more expensive proposition to equip a salon, spa or clinic than ever before.

The need to produce more revenue to feed hungry equipment leases is greater than ever, and so, every square inch of your premises has to be devoted to making more money; and that includes your retail shelves.

To experience the best retail success, there are a few tips I can share with you to give your retail sales a welcome boost.

Choosing the Right Products

No matter how amazing a retail range may be, if the price point is too high or too low for your clients, you’ll struggle to sell products.

One way to assess this is to look at the price point of your services. Are you at the high or low end of the price range for the services you provide?

Chances are that wherever your service prices sit on the scale of inexpensive through to top-of-the-range, that’s where your retail products also need to be.

Looking Serious about Retailing

I know it’s the norm these days to have more than one retail range however, if this means that you have a few of this and a couple of that on your retail shelves, then this isn’t the best strategy for your business.

Before a client buys retail from your salon or spa, she needs to know that you have total confidence in it.

A few scattered products sourced from multiples ranges does not reassure your clients that you have confidence in the products you sell.

Rather than continuing on with this strategy, look at who your core clients are (the 20% that generate 80% of your sales) and what they are purchasing from you (or what they want to purchase from you). Then go out and find a range of products that’s a perfect fit for this segment’s needs.

Stop trying to be all things to all people. It diminishes your business when you do this.

Be confident in your business niche and which clients you are a good fit for and then cater for them wholeheartedly.

Creating a Retail Display

Plopping products on shelves and hoping they will sell themselves is optimistic at best. You need to give them a helping hand to increase sales.

1. Put your best sellers at eye-level.  Eye level is buy level.
2. Price your products in a visible location. If you have to hide the price then you are selling the wrong products.
3. Group your products together so that clients can find products that are perfect for their skin type or condition.
4. Never have complete gaps in your retail display. You can’t sell what you don’t have.
5. Always keep testers on hand for your most popular products. Client love to try before they buy.

Getting your Team Members Motivated to Sell

No-one is going to be enthusiastic when selling if they don’t believe in the product – especially therapists. To overcome this, ensure your team members are personally using the retail range you keep in stock.

When they start working for you, organise a package of testers or samples for them to use at home. The last thing you want is to have them raving to your clients about the products they use from the last salon they worked in.

Use retail as productivity rewards and always allow them to buy at your cost.

Devote time at every team meeting to refresh your team on one or two products from your product range. It’s easy to forget the benefits of every product you stock.

Encourage your team to give each other treatments using your products. Let them feel what the clients feel so they can talk more enthusiastically about the benefits your products deliver.

Product Prescriptions and Promotions

Many suppliers provide salons and spas with product prescription pads to use with clients. If you have them, use them. They are invaluable for making a written recommendation for clients who may not be able to purchase all the products required on the day of the service.

Also, stay up to date with promotional material available from your supplier. Take advantage of their promotional packs and special offers which are often provided at a better-than-normal price. This is a great way to introduce clients to your product range without resorting to useless samples.

If you’re using salon posters, be sure to remove them the minute they begin to look faded or tatty. This doesn’t send a good message to your clients.

 

6 Simple Steps to Conquer Overwhelm

6 Simple Steps to Conquer Overwhelm

by | Jul 29, 2017 | Leadership and Personal Well-being, Salon and Spa Business Performance

We all feel overwhelmed at times. Too many things to do and not enough time to do them in.

The real problem with overwhelm is that when it strikes, it tends to bring you to a complete stop. You just don’t know what action to take next, and so you take no action at all and therefore nothing is achieved.
But there are some simple steps you can take to conquer overwhelm and it’s easier than you may think.

Step 1. De-clutter your environment.

If you are constantly surrounded by clutter you can quickly end up with brain fog. All that ‘stuff’ surrounding you can leave you feeling completely overwhelmed. Take some time to de-clutter your work area.
Sort through all the bits surrounding you but try to handle things only once if possible. Whether it’s a piece of paper or an email, read it and either take action, delegate it to someone else to deal with, or hit the delete button (or toss it in the rubbish) and get it out of your mind once and for all.
See, you’re feeling better already!

Step 2. Get a pen and paper and make a list of what needs to be done.

Don’t worry about what’s more or less important at this stage, just get it out of your head and onto paper. I guarantee you that this one action alone will take the pressure off and allow you to start thinking more clearly.
Once it’s on paper, you can’t forget about it and that’s liberating in itself.

Step 3. Break your big list up into 3 individual lists.

Grab some blank paper and draw up 3 columns.  Head them:
Urgent – Jobs that absolutely have to be done immediately or all hell will break loose.
Important – Jobs that need to be done pretty soon but can wait another day or two.
Not So Important – These are the jobs you’d like to get done at some time, but nothing major will happen if it’s not done in the next couple of weeks.
Once this is done, you have created a prioritised list and now you’re absolutely clear about what needs to be done first. Don’t give into the temptation to do those easy-peasy jobs that are in your Important and Not So Important lists – they can wait.
Stick with the items in your Urgent List and don’t get side-tracked.

Step 4. Evaluate your Urgent List for jobs that can be delegated.

It’s easy to fall into the trap of thinking you’re the only person in the world capable of doing what’s on your list but that’s just your ego getting in the way of working more efficiently.
It’s generally much quicker to spend 10 minutes explaining what’s required than an hour doing the job yourself.
Put aside the ego and ask for help.  You are not the only person who can achieve great results!

Step 5. Take action on your Urgent Jobs.

Before you get stuck in, set yourself a realistic time frame to get each of the jobs done.  Write your expected finish date down beside each job so you can keep yourself accountable for getting things finished.
If necessary you can break each Urgent Job into smaller chunks and give yourself a to-do-by date for each of those segments.
Breaking big jobs down into smaller chunks takes away the fear of tackling a huge job!

Step 6. Re-evaluate your list each day. This is essential to stay on top of things.

Keep in mind that your lists are fluid.  There are your lists so you can move things around from list to list as things change.  You’re almost definitely going to find that some items will need to be moved into a different list at some point. Important items might have become Urgent or Not So Important items may not need doing any more.
Just get into the regular habit of spending a few minutes at the start of each day re-prioritising your items so you’re always working on the Urgent items first.
If you manage to complete all your Urgent items, move onto your Important items and start to delegate or take action on these.
And that’s it. I will guarantee that if you use this technique to de-clutter your mind and priortise your to-do list you’ll feel that overwhelm slide right away.
Oh, and don’t forget to put a lovely black line through each item as it’s completed. That’s almost the best part!

Why Retail Sales Can Make or Break Your Salon or Spa

Why Retail Sales Can Make or Break Your Salon or Spa

by | Jun 12, 2017 | Increasing Profit, Salon and Spa Business Performance

The fairy tale version of owning a salon or spa is that you learn your trade, start your own business, deliver outstanding treatments and gain a large and loyal clientele that will make you both rich and fulfilled.  This is the happy-ever-after version!

The truth, however, is that you learn your trade, start your own business, deliver outstanding treatments and struggle constantly to pay your bills, take home a wage for yourself and make any kind of profit to re-invest into your business.

Things used to be sooo much easier!

The internet and social media didn’t exist and you didn’t have to contend with other salons competing energetically for your clients. On top of this, the beauty industry has also undergone a pretty intense revolution in the past 15 or so years with the introduction of more potent (and more expensive) products along with high-tech equipment now needed to deliver the level of results clients expect to get.  In other words, everything just costs more; and so more revenue needs to be generated to cover those higher costs.

All in all, the fairy tale version is done and dusted and newer, better strategies are now needed to generate more revenue and hopefully bigger profits that will help you to thrive and grow in your business.

 

And that’s where retail sales stride into the profit equation.

 

When you sell a service you are, in fact, selling your time.  But time is finite and so it’s important to understand that retailing can actually return 2-3+ times more profit (depending on the markup of your salon or spa retail range) for the same amount of time invested in producing a sale.

Both services and retail have a base cost but the important difference is in the time it takes to generate the sale. As an example, if you provide services for an hour and earn $75, you would make around $37.50 (average) in gross profit. However, if you sell a skincare product for $75 (with 100% markup) you would also make $37.50 in gross profit.

The difference, of course, is the time taken to generate the same amount of profit – 1 hour to deliver services vs 10-15 mins to sell a retail product.

These figures will vary a little from salon to salon due to the cost of labour and products as well as retail mark-ups, but there is absolutely no doubt that retailing is a far superior way to generate gross profits.

So now that you’re convinced you to need to sell more retail, what happens next? Here’s an overview of points to consider.

Recruitment – If retail sales are important to your long-term success (and they are), hire people who are not only good technically but who also have a proven sales record. Many therapists and stylists hate to sell. They are simply not comfortable with the process for a variety of personal reasons, so make sure that you focus on the retail capabilities of your new hires during the recruitment phase.  You will struggle big-time to convert someone who hates selling into even a mediocre retailer.

Training – No-one can sell something they know nothing about. Make sure your team members know your product ranges inside and out. Also, ensure they use these products personally as team members generally sell more successfully if they truly believe in the products they’re selling.

Targets – We all work better when we work towards a target. Keep your sales targets realistic and achievable and help team members to improve the skills they need to achieve them. Once they reach their targets, reward them appropriately.

Product Range – No matter how fantastic a product range is, if it’s too expensive or too cheap for your clients, you will find it hard to sell. Also, look for a range of products that offers your salon or spa a 100% markup and is not readily available online.

 

In summary, retailing should never be treated lightly in your business as it can literally make or break your business financially. Remember, the profits from retailing can far outweigh the profits from providing services and so it deserves your full attention and planning.