Rebooting Your Salon Business

We can all agree it’s been a challenging year. However, with challenge comes opportunity for change. Take the opportunity to make it a positive change! Revisiting how you are building your business has never been more important. It’s crucial to pinpoint your problem areas. You can do this by checking your reports weekly to find any areas of weakness. Check out some of these simple ways you can get your business back on track!

Increase your average ticket price. 

If one of the problem areas you find is low sales, you can take some simple steps to increase your average ticket price steadily and consistently. First of all, it is important to not compare 2020 to 2019; we all know that 2020 was a year like no other, so comparing the two is like comparing apples to oranges. With that said, there are still ways you can increase your average ticket price in small increments that won’t be significant to your clients but will add up to make a difference for you.

If you have not raised your service costs in over a year and a half, then it’s very reasonable to increase your ticket price that way. Other easy ways to increase your average ticket price is with add-on services, such as conditioning treatments. You may be wondering if $5 a ticket could really make much of a difference. Let’s do the math:

You see 25 clients/week = $125/week increase = $500/month increase = $6,000/year increase

However you choose to increase your average ticket price, you must believe that you add value to every client you interact with, because you do! Your service is worth the price increase.

Increase your volume.

If you determine that your low sales are because of a decrease or lack of volume, then you need to find ways to increase clients. A slight increase in weekly clients can make a big difference in a month and year. Consider three additional clients per week:

3 clients/week at $100 = $300/week = approximately $1,200/month = $14,400/year

That sounds pretty good, right? You might be wondering how you go about getting those new clients. Do not attempt to do it by discounting your services—your services are worth the price! Instead, consider ways you can enhance your referral program, such as a VIP gift card program.

To implement a VIP gift card program, begin by pulling a report to determine your top 5-10 clients. Once you establish which clients are your VIPs, load gift cards with $15-$20. Make sure you are not giving over 20% of your average ticket price on gift cards as you don’t want it to be too costly for you. Prepare to give two gift cards per VIP with a handwritten thank-you card in a small gift bag or box (you can get these at a dollar store!) with a few samples for the client. When you present them, say something like, “I’d like to give you a couple gift cards to share with your family or friends who have never sat in my chair. I’d love to meet them and spend more time with clients like you!" When the card comes back, the VIP client can also get rewarded via your standard referral program. For more tips on getting clients to refer you, check out this blog!

Increase frequency of visits. 

If you are noticing a decrease in the frequency of visits, there are a couple ways you can improve this metric. You can simply bring on a stylist who has a full book of business. That would increase visits quickly. You can also increase the number of times your current clients come in, such as moving a client from every six weeks to every four weeks and/or scheduling in-between services. Let’s check out the equation on this one:

Client ticket is $100 and client goes from 8 times a year to 13 times a year = $1,300/year

$500 more per year per client x 10 clients = $5,000 more in sales

If you have a client who is frequently complaining about her greys showing too soon, suggest an increase in visit frequency. For balayage clients who normally go longer between color visits, pre-book before they leave the salon with conditioning, glossing, and cuts in between. Consider creating a signature 5-minute conditioning treatment for an in-between visit service. When treatments are signature to your business, they tend to be much more popular.

In addition to these tips and tricks, make sure to keep a pulse on client retention; if clients are not returning to your business, your business is not growing. To ensure you are retaining your customers, focus on your quality of work, guest experience, and value. Continue to remind yourself and your stylists to pre-book, educate your clients on services and products, and stay engaged on social media. Deciding to reboot your business may seem like a daunting task. However, if you pick one area to focus on first, it is much more manageable. And remember, when setting goals, consistency is key!