June 30 is creeping up on us, and it is a great time to introduce a price increase on services, but have you considered other avenues first to generate more profits?
Most salon owners react to the question “how can I make more money?’ and automatically think they need to charge the customer more.
It may surprise you, there are other options you can take, and although rising prices is most certainly a regular occurrence we would recommend, it may not be the only answer.
Here are 3 very effective ways to increase your profits, without a price rise!
1. Have you considered Increasing your average client spend (on average how many $$$ each client spends with you every visit)?
You can do this a few different ways, you can have them upgrade their services or serve them better by offering more services they may be needing, and can get it done while they are with you.
Offer a retail range to help your clients with home hair/beauty care and needs!
Some salon owners get scared of the word ‘sales’ or don’t want to come off 'salsey’ when helping clients with your retail range, or helping them with upgrading your services. But the truth is you are actually doing an injustice by not servicing them as well! Clients have money to spend, and it all comes down to...... do they spend it with you, or do they give it somebody else?
If your client comes in and asks for their standard full foils and toner, but constantly talks about how dry their hair is, and brittle, If you don’t upgrade your service to include a treatment at the basin and chat about your take home products to help with home hair care, you’re not serving your client to the best of your ability!
Take home products compliment your services and not only gets your client coming back for your services but coming back with orders for products as well!
Upgrading your services works the same way, if you are genuinely looking out for the best interest of your client, and looking for ways to service them better, upgrading your services works just as well!
If your client is booked in for a facial, lash tint, eyebrow wax and tint, and she is chatting about her event she is attending on the weekend. You further ask her about her event and what she is wearing to find out about her beautiful green dress, and she is looking to get a matching bag and shoes to match later that day, but she is running out of time, and worried she won't get time to get what she needs for the matched look she was after. She may not of considered to match her finger and toenails with your full range of gel polish! Or if her dress is cocktail length and her legs are on show, perhaps a leg wax and spray tan? Maybe a lip gloss or perfume you stock in the salon, she could grab with you to save her some time.
Your client is actually so thankful to you, as you have successfully saved her the most precious commodity (time), helped her feel absolutely amazing in her stunning new green dress, with matching nails, flawless tan and gave her the gift of confidence!
2. Have you considered the avenue of getting your clients to visit you more frequently?
You by no means want to trick your clients into coming when they don’t need to, but little things you can do to ensure they see you every 6-8 weeks instead of every 10 for their cut and colour, or every 3 weeks for their waxing instead of 4, is REBOOK them at their appointment!
If you don’t rebook, the clients get to the week of needing your services, and they message you and you don’t have availability until the following week, or they look in the mirror and start noticing their regrowth at the 6-8 week mark and by the time they remember to call/message you in between work, picking up kids, cooking, cleaning, another week has pasted.
Now if this extra week is stretched out every time over the year, that could potentially be the difference between them seeing you 8 times instead of 6!
If you have let’s say 80 clients seeing you 6 times a year on average spending lets say $120 on each visit (some maybe more, some maybe less), that’s only $57,600 for the year. But if you can have those same people see you 2 more times over the year by simply rebooking at time of appointment, you have given yourself an annual bonus of an extra $19,200!!
3. Can you leverage your timings better, getting faster with your services to ensure you can see more clients in a day, or if your able to see a couple of clients at the same time?
Getting faster at your speeds can be like giving your self a pay rise!
If you can get your full set of acrylic nails from 2 hours down to 1.5 hours, you can see one more client in the day than you did before. I’m not saying put yourself under ridiculous time constraints, that you don’t feel comfortable with or that will make you fall behind, or have your quality of work slip, but if you can challenge yourself and get faster, if you can see one more client a day over let's say 5 days, you’ve just increased your hourly rate girl!
How do you do this?
GET A CLOCK! If you don’t have a clock for reference, set a timer. It can be so easy to get distracted as there isn’t anything making you go faster, you have no idea on the time and you chat away with your client, and it's not until you are finished, you say “Oh no is that the time?” (trust me I have been guilty of that)
Have you considered leveraging your time with seeing more than one client at a time? You obviously can’t divide yourself in half and do them at the same time, but if you can have a hair colour service processing while you do a hair cut, leg wax or spray tan, would that be effective?
Or if you have the space, create value packages so best friends can come and get a spray tan together? Or mother and daughter can get their hair done together at the same time? Make sure you address all these options before looking at a reactive ‘price rise’ for your clients.
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