How to Get Your Spa and Salon Profitable in 30 Days!

If you own a spa or salon, you’re a business owner. Good news, there are many ways to make more profit in your spa or salon than what you are currently doing. It’s time to put your business owner pants on and treat your spa as the business it is.

When money is tight, most spas cut back on advertising costs. To become a profitable spa, reducing expenses is the right step, but only if you are doing it for the right reason. No amount of money in advertising will generate a profit if the rest of your business is failing. In fact, advertising a poorly ran business is a quick way to run it out of business. Be honest, could your team handle five more customers this week? How about 50?

As a spa or salon owner, you must implement processes to help keep your business profitable and increase sales. We’ve put together five process building steps for you to get your spa in the black in 30 days. Depending on how well you implement them.

The first thing is,

Stay Positive!
Even if you’re broke! Having a positive attitude is one of the most important things you can do to get your spa or salon thriving. Your customers and staff hear a lot of negative talk in their daily lives, and they don’t want (or need) to hear it in the spa or salon.

How to implement
Hire upbeat people and inspire your staff to smile often. A smile is free and contagious and will put a smile on the face of your customers as well. People are attracted to others that are positive and recommend socially positive experiences to others often. You’re also more likely to get what you want with a positive attitude.

Reduce Costs
How much of your earned money gets wasted through lack of attention to detail or is lost by your staff? A free second color can cost your salon BIG. Products that are given away in your business comes straight from your bottom line. Make sure your money is not slipping through your fingers, no pun intended.

How to implement
Keeping fanatical track of inventory is business 101 in any company. An extra pump of product here and there can add up, especially in larger spas and salons. It’s the little things that add up that kill businesses.

Even the back bar in the salon can make the difference between a good month and a bad month in profit. Reduce bank and credit charges, ask suppliers how you can decrease costs, and even adding rubber bands to pumps to dispense a half pump will get you moving toward profitability.

If you have a product that isn’t moving, mark it down or sell it online with the goal of converting it to cash any way possible. You need to reinvest that money into a product that you can sell with decent margins.

Keep Your Existing Clients
Selling to existing customers is way less expensive than attracting new customers. Your customers expect a good value for their money. Don’t disregard this or you may risk losing clients to another spa that is desperate for new clients. Every service you provide in your salon must represent a good value for money to your clients if you are looking for client retention.

How to implement
Don’t start discounting. Discounts have a serious long-term consequence to your bottom line, instead look for ways to add value to your services.

Implement value-added to basic services to create a better experience. Some of the best value-added techniques allow for your team to multitask, while the client receives something special. A great example is a hot towel added to a service. While the client is receiving the benefits of the hot towel, staff can pick up, clean, and prepare for the next client.

Sell More to Your Existing Customers
Selling more to your customers is so straightforward you’ll wonder why you haven’t been tapping into this powerful revenue generating machine before.

Even 16-year-olds at McDonald’s do it with a “Do you want fries with that?” process.

All your team needs to do is present the option politely. To master the upsell, make sure you’re team has the right knowledge of additional services and listening skills.

Don’t expect the customer to grab your ears and shriek “sell me a dermaplane”! True professionals recommend services that enhance or complement what is being performed and cross-sell a different needed service that the customer might purchase somewhere else.

Suggesting a head massage or pedicure is a natural upsell any time of the year. Remember, it’s everyone’s job at the spa to make the recommendations for themselves and other team members. Some cross promotions won’t financially benefit the referrer unless you have a process for internal referrals. But, your staff needs to understand sometimes they need to do this to benefit the spa and other team members. Plus it will increase customer loyalty.

How to implement
Teach your staff to listen and look for additional opportunities for their clients to purchase additional services. You can even run weekly or monthly promotions to drive traffic to different departments.

Receptionists should also recommend complimentary services or add-ons during booking. A simple statement like “Most of our customers also book x service when booking y” can increase service x sales significantly.

You’ll have to train your staff as many spa and salon staff probably never had any sales training in their lives.

Increase Your Retail Sales
Retail sales might have more margin to your salon than even services after expenses.

Never push product, always make recommendations and ask if they need a product.

Adding a high margin sale at the end increases the ticket price, and many customers end up tipping on product sales.

How to implement
Communicate the “why” of retailing to your team. Make sure your staff knows why retailing is important to your business (especially how it will affect them).

Increase the Number of Customers:
Attracting new spa clients is more expensive than selling more to existing customers.

If your team isn’t maximizing the number of services purchased by the existing customers, you’re not ready to attract new customers.

But, if your team is consistently upselling, recommending products, is providing quality customer service, and has open hours to fill, now is the time to become more proactive about increasing your customers base.

Word of mouth is the best form of advertising, but it is also very slow and impossible to manage and scale. You need spa and salon marketing to attract fresh customers. Advertising speeds up word of mouth.

How to implement
Start a referral program. Start thinking about how you can develop an effective client referral program that will produce new clients straight away. It is acceptable to ask your existing clients to refer a friend to your spa or salon especially if you are prepared to reward them for doing so.

Advertising is also a great way to speed up word of mouth referrals. We find paid advertising on social networks like Facebook, Instagram, and YouTube works well here when done correctly. Your advertising must be ROI driven, or you are wasting money.

February 21, 2018

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