A quick way to increase salon profits
This is what we all want, right?
Well, I don’t think I speak to anyone who isn’t keen to grow business profit and client base. But let’s talk profits today.
What do I mean by profitability?
Easy… The bit that is left over. Don’t forget to take off ALL of your expenses. Every time you do a treatment you have to take money for your training course. Even if you did it 10 years ago. That is now 10 years experience! You are always learning and improving.
If you want to talk more about profits, why not come and do my understanding your pricing structure workshop…
How to increase profits
It doesn’t have to be difficult. Let’s have a look at a few:
- Grow your client base
- Increase the average spend per visit
- Increase how often they visit your business
- Reduce your salon overheads
Keep them coming back
People often focus on getting new clients. Why not focus on the ones you have?
Why not make them feel so valued that they cannot help but tell everyone how amazing you are. Let your current clients sell your business for you!
When your clients return for a 2nd visit and a 3rd and 4th, they are staying. Clients are all about building relationships.
I always say my entire business is built on approximately 20 clients! And my salon takes over £100k per year! Sounds crazy right?
Do this and you will…
- Increase your client base
- Research shows established clients are more likely to spend more at each visit
- You get the opportunity to re-book them on each visit and increase the frequency of salon visits
- It is cheaper to retain a current customer than to acquire new ones.
Ok I can still here you asking, but how?
Let me show you a quick example which can be done by any salon owner.
If you don’t believe me here’s the maths…
Take a look at this simple salon calculation to see how much you LOSE if you don’t hang onto that new client after their 1st visit. This salon profit calculation is for a hair salon. However, it works equally well for a beauty salon or day spa.
Let me show you…
Let’s say your average Facial is £35. Your client makes an average of 5 visits per year to you.
£35 x 5 visits = £175 spend with your salon per year.
Let’s add some extra services to this, like a massage or Indian head or some waxing. Increase their spend by another £20 – £40
That’s a POTENTIALLY an extra £100-£200 per year, with no extra advertising costs.
So per year this clients total is now potentially £275 – £375
To me, this is just by you increasing your chat to them and getting them to see the value in what you offer.
Imagine if you could get this client to come every month
It is our job to make recommendations and we know how much the clients will benefit from monthly treatments. Now think this client who used to come 5 times per year is now coming 12 times.
You have just more than doubled that clients spend. Just for spending time with them, making recommendations and showing you care.
This client is now spending between £55 – £75 per month. I can hear you saying ‘NO Way! It won’t work’. Well, I am no genius and it works for me.
Just be authentically YOU! Care about your clients and your job, which I am sure you already do!
This client now spends between £660 – £900 per month. Do you seen where I am going?
Imagine this x50
Say you have 50 of these clients coming to your salon every month?
All spending this amount! That is now £2750 – per month!!
Let’s x that by 12. Your business is now taking £33k – £45k per year.
How does that sound?
Does that sound good? And that is only 50 clients. That is only 11.5 clients per week.
That doesn’t sound hard does it?
Did you know?
Most salons only keep about 33% of new clients. That is, 67% never return for that 2nd visit.
Have you ever thought how much you are possibly losing?
The answer is rather scary, here it is…
67% of your 50 clients is 33.5!! Wowser!!
33.5 clients a year never return after their 1st visit. It makes you think.
Making life harder
We are just making things difficult for ourselves. Why?
So get chatting to your clients. Go above and beyond and go that extra mile. Obviously boundaries in place. But you get the gist! Think about the potentials.
I have given a very small example here. You could easily double and triple this figures. But, I always believe in breaking things down to be able to see how easy it COULD be!
Increased profit potential
Now try the calculation for your salon to see how much you are losing each time a new client doesn’t show up again.
To increase your salon profits hopefully you can see that what you need to do is straight-forward – just ensure they return for a 2nd visit and become loyal clients.
How you do it is rather more tricky. This is where your salon marketing steps in. That is another topic for another day…
But you are not alone!!
I also offer a free strategy call as part of my Creating Salon Success group, to discuss the challenges you are facing in your business or to help you find your direction. Or, maybe you just need a little support and want to work at things at your own pace, join us.
There are so many modules available to you, all aimed at helping you have the business you always thought you would have; learn how to price your treatments and build your confidence.
If you fancy a chat just get in touch…