Key Actions That Will Improve Your Salon or Spa Profitability
May 29, 2017
If it is accepted that you are already running a profitable beauty salon and spa, it is time now to think about taking your business to the next level in terms of turnover and profitability. There are many ways to do so depending on your years of experience in this field and the volume of clientele. However, there are a few sure shot ways you can try that usually in most cases will certainly bring success.
Here are some of them that you can implement to grow your salon and spa business and profitability.
Improve customer experience – A satisfied customer is not only a source of permanent revenue, you can be sure that he/she is also a great point of referral and will bring in more clients for you. Hence adopt a personalised approach. Do not treat them as a number in your cash register, go out of your way to remember their names, their tastes and what pleases them most in the your salon and spa. Is it extra towels, a round of gossip with your staff or even the beverage that they prefer? This act of making them feel important and remembered will surely help to spread the message of the quality of services offered by you, thereby increasing the flow of clients and revenue.
Offer one time discounts – Customers will never forget their first day at your spa. If they feel your service is awful, that is the last you’ll see of them. Hence, make the first time treatments a special affair for clients. One of the ways to do so is to offer heavy discounts, something like a bundle of different services for the price of one. If you can make it a memorable experience, the client will come back for it at periodical intervals, never mind if they have to now pay double or triple for it. This will improve you income levels without extra investments in equipment or additional staff.
Focus on increasing average spends – This should be another of your objectives. If a client comes in every couple of months for a haircut, try and push colouring through too. If you succeed, that’s extra revenue for you per client per visit. A word of caution though! Do not be too pushy with your pitch. Convince your client to try extra services without being overbearing. Once your client is satisfied with the add-on, it will be a regular feature in all her/his visits. Along with this, focus also on increasing the number of visits. Make precooking even if the next appointment is months away. Give a signed card to your client and follow up days before the schedule.
Reduce overheads – Look for ways and means to reduce overheads without compromising on the benchmarks of service. Keep the ambience as it is, as well as the number of trained and experienced staff. But cut down on inventory levels and do not invest in additional capital expenditure until absolutely required. If you are looking for an IPL hair removal machine for sale to augment your existing ones, explore alternative installation options. Instead of going for outright purchase, opt for a leased machine. Not only will you save on immediate expenses, you can pay the instalments from the extra revenue generated from it.
Other ways that you can reduce costs are through reducing phone, bank and other establishment charges, rationalising staff costs with better rostering, reducing freight costs and negotiating with suppliers for better deals.
Follow these simple steps and you will surely increase the profitability of your beauty salon and spa.