Ensuring good profitability for your salon will help you as an owner reach financial stability and provide you the opportunity to reinvest in your business. Without profit, you may struggle to pay the rent of your premises, pay your staff or replenish your stock.
If you’re worried about your salon’s profitability, here are five ways to ensure your business plan is more financially stable.
Offer upsells and add-ons
Upselling is an excellent way of increasing profitability. Small and frequent additional purchases can make all the difference. Charging a small fee on top of a treatment or service to enhance the client’s experience is an ideal incentive for that extra purchase.
For example, if you have a tanning salon, you could sell add-ons such as tan accelerators to ultimately upgrade the treatment for the client. This helps you to showcase your products and encourages your clients to repurchase if they have seen great results.
Implement loyalty programmes
Loyalty programmes can create satisfied customers and encourage customer retention. Customers who return and make repeat purchases generate the most profit, compared to new customers who are visiting as a one-off.
Consider offering your customers a loyalty card where they receive stamps every time they book a treatment. When they reach a certain number of visits, reward them with a free treatment or service of their choice.
It could be worth taking a deep dive into your pricing strategy, ensuring you’re being competitive without underselling your services. Identify the treatments which currently take the fewest bookings, reviewing why this is and whether you’re charging too much for the service.
You should also reconsider the treatments with the lowest profit margin and decide whether you should continue offering these. Focus more on the popular treatments and double down on what your clients are specifically requesting.
Invest in marketing
Ensuring you get customers through the door of your salon is crucial to making profit. By investing in marketing, both online and offline, you’ll be spreading awareness of your salon and informing your audience of the services you have to offer.
It’s not always as simple as relying on word of mouth. Advertising your services online can help you reach a wider audience. Plus, ensuring all the relevant details about your salon are easily accessible can help potential customers decide whether they want to book with you or not.
Manage inventory efficiency
Having the relevant inventory control is crucial for the everyday operations of your salon. Ensuring you have enough products required for the treatment you’re offering can help you avoid any last-minute cancellations and losing potential revenue in a situation that could have been avoided.