Time for a Makeover: 5 Profit-Boosting Ideas for Hair Salon Businesses
Are you in a business rut? If your processes, services and income have been pretty much the same for years, the answer is probably yes. It may be time to say that “good enough” isn’t good enough anymore.
Just like its clients, a hair salon must update itself regularly to stay current with the marketplace and maintain a successful competitive edge. Check out these tips for revamping your business to make it smarter, not harder.
- Analyze service and product sales.
Do you really know which ones are selling well and which aren’t? Spend a few minutes learning what your inventory control system can tell you about where your money should be invested in the future. (If your system can’t do this, consider finding a new option.)
Check out the latest hair trends in your area and online. Are there new products and services you should add to your offerings? Pick your stylists’ brains. Do clients often ask for or comment about things you don’t currently supply but your competition does?
- Do more upselling.
Encouraging clients to buy more than what they came in for is one of the least expensive ways to increase sales.
- Turn the waiting area into a fun exploration zone with tester displays and brag books.
- Offer coupons to try new services or products.
- Have stylists explain to clients what products they’re using and why.
- Revisit marketing efforts.
Increase revenue by bringing in new clients. Even if you don’t have the budget, there are many ways to get your salon more widely known at little or no cost.
- Referral program: existing client brings a friend and they both get a discount.
- Social media: expert demos, hairstyle of the day, critiques of celebrity hair.
- Cross-sell partnerships with neighboring businesses: you display flyers or coupons in each other’s stores.
- Raise your prices.
No, it won’t drive away clients, as long as the increases are based on solid data. As your costs of doing business go up, your prices should also adjust to maintain profit margins. Your P&L statements will show you exactly where you’re falling short.
Of course, clients must also believe that they’re still getting good value for their money. That’s where the tips above can help, by giving them the impression that your salon offers the expertise and service they’re looking for.
- Outsource what you’re not good at.
Your expertise is hair, not bookkeeping. It may take you hours to figure out a spreadsheet or P&L statement, and still not be sure you did it right. That time and energy is better spent in growing your business, while an expert accountant makes sure you stay on track and advises you when adjustments need to be made.
At Xendoo, we specialize in small businesses such as hair salons. By integrating directly with your business management system, we eliminate bookkeeping chores from your daily schedule and provide the information you need to make smart decisions. It may be the greatest makeover trick of all for a small business to stay successful in the years ahead.