How to unlock the hidden cash in your salon business
If you’re serious about growing your revenue then you need to get smart. You might be sabotaging your efforts without realising it by making some common mistakes. We outline the four money mistakes that could be impacting your bottom line:
1. Do you discount?
Look at your discounting habits. You might think discounts are a way to pull people through the door but any work you do at special rates, such as discounts for kids, senior citizens or students, is work that earns you little or no profit. Can you really afford to keep that up?
2. What about no-shows?
No-shows create havoc in your schedule, especially at busy times of the year, but have you
considered what they’re doing to your bottom line? Sit down and work out how many no-shows your salon had last week, last month and last year. Get ready to be surprised, and possibly frustrated, at all the money lost as a result.
3. Sale time
Retail products are a key source of income for most salons and spas. Do you know what your best and worst selling products are? Does your stock ordering system reflect this? Think strategically about what you can do to boost sales.
4. Mind the gaps
Look at your calendar and figure out what’s your salon’s busiest day of the week? Are there any days where you’re constantly turning away paying customers? Could you maximise productivity and profit by only showing online booking availability before and after booked timeslots?
Timely’s Minimise Gaps feature makes this easy and helps you make the most of the time and resources available.
Three creative ways to increase your revenue:
1. Express yourself
Offering your clients express services is a way to help them feel the love while boosting your bottom line.
Come up with some fast, affordable and easy-to-sell services that your clients will love. It could be quick massages or even express manis.
2. Sync with the seasons
You’ll know from experience when your busiest times are. Many salons are really busy before the festive season kicks off then find themselves practically empty when everyone’s on holiday.
Planning ahead can take the headache out of your cash flow. Get creative with promotions and events to draw in new and existing clients back when the salon is quiet. There are lots of great ideas in Timely’s salon promotions blog.
3. Get your clients to be upfront
Online booking gives you the opportunity to request a deposit and if someone’s already paid for some of their treatment, they’re less likely to be a no-show – saving you time, hassle and money.
It pays to set up automated appointment reminders, too. With Timely, you can send custom SMS marketing and email messages whenever you like. Just set, forget and watch your no-show rate dwindle.