4 ways to increase salon profits
As a small business owner, you are responsible for every aspect of your business and keeping it afloat. Growing profit is important, to cover any future eventualities. But how can you increase your salon’s profitability?
1. Redesign your treatment menu
Take an objective look at the treatments you offer and identify the services which have the fewest bookings and lowest profit margins with a view to removing these from your offering. This will clear the way to focus on the more profitable services and to introduce the new treatments clients have been requesting.
Use the opportunity to optimise your treatment menu by rewording your services. Simplify the copy and speak your clients’ language so they are absolutely clear what they will receive from their treatment.
2. Increase client visits
Many clients lead busy lives and may want multiple services but not have time for them all. Look to introduce shorter treatments which use technology to achieve results in a fraction of the time, such as Eve Taylor London’s Target+ Ultrasonic Facials.
These specialist treatments achieve impressive effects in just 30 minutes; they complement full facial treatments and can be carried out in the weeks between treatments, making them especially beneficial when treating specific concerns such as hyperpigmentation or problematic skin.
These shorter treatments can also be combined with other services you offer, such as nails, lashes, waxing or massage, allowing you to create an all-round beauty package.
Offering shorter, result-focused treatments will allow you to see more clients throughout the day, increasing your bookings. The more clients that visit you also give more retailing opportunities, further boosting revenue to the business.
3. Increase average spend with upgrades and add-ons
With clients craving experience-based treatments, there has never been a better time to increase profitability by upselling. Small but frequent profit enhancements could be made by upgrading the treatment with a more luxury product. For example, massage with warm candle wax, such as Eve Taylor London’s Aromawax Massage Candles, for a small additional fee.
If you are looking at higher profit upgrades, look to upsell with more premium formulations. Enhancing their treatment with a specialist peel-off alginate masque rather than a standard paint-on masque, or using a technology-based modality within the treatment, adds revenue to the business while showcasing higher performance products and equipment, encouraging clients to book in for those treatments next time.
4. Offer retail products
The lockdowns of the pandemic have showed us that clients can and will buy products to use at home. Just because they are be visiting you again for treatments, don’t revert to not offering a retail selection for their homecare.
While you are limited as to the number of treatments you can perform within your opening hours with a maximum revenue ceiling, the profit made from retailing has no limits, meaning you can sell a full regime of products with a cost matching or exceeding that of the treatment in minutes, with very little physical effort.
Even just retailing one product per treatment can increase profitability greatly throughout the week.