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Salon Spa Price profit sales

Friday, July 4th, 2014Beauty hair salon, consultation, Hairdressing, hairdressing business, Salon & Spa, The Hair SalonComments Off on Salon Spa Price profit sales

Welcome to BACK2MYROOTS B2MR : Regular postings of fresh new topic’s.

Salon Spa

Profit Sales

mike vallance

 Salon  and spa. Prices profit sales: How do we increase those sales figures? What do we have to look at and consider as salon owners in today market. There are a few key points that you need to consider think of it as your circle for growth and success.

Market, pricing, sales, costs, discounting, strategy, overheads. Each of these is connected and definitely effects profit and profitability of your business.

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Lets look at these together and see how they all connect.

Market what is your target market ? With out an idea of this how can you fix a pricing point that your client or potential clients can afford or will be happy to pay ? This leads to pricing, how do you decide on what you want to charge in your salon for the services you offer.

Note: Don’t over complicate your price list and services. How do you come up with right fee’s or pricing  this is where it gets interesting its an equation. Days open, hours in a day, number of staff !!! Given that small is the new Big ‘The New salon rule book’ Consider. How many days are you open. Then consider the hours open for business. Finally the salon number of staff /stylist who will be bringing in revenue to cover all the hours.

We have: 

Days lets say  6.

Hours lets say 4 days at 8hrs two days at 10 hours =52  hours.

lets go with 4 stylist doing appointments every 45 minutes  bringing in £60 .00 or $60.00 an hour

This is the fun part 52 x 60 x 4 =  Max takings of £/ $ 12,480 per week  divded by 4=£/$ 3,120.00 Per stylist if fully booked. Plusretail sales. I have always thought retail should cover the cost of salon products if the salon is working to its full potential. We could go on and multiply by weeks and into months.Of course one would have to have a list over overheads and expenses.

retail product knowledge

Note:

Expecting all staff to want to work 52 hours is asking a great deal so having a float or part time member may well be required as well as receptionist, and apprentice/trainee or assistants.These are needed and although are an expense will make the salon runner much smoother and so more efficiently maintaining service and standards key to success and growth and client retention.

Out going: Rent or loans, utilities, wages/commission, stock, tax, sales tax,insurances,Employer contributions, plus others!

The point here the question we started out with is. How do you increase profit? Given our little scenario above that every one is fully booked working to their fullest potential yet still delivering the highest level of service only two things can change to increase takings, more staff so you can service more clients or an annual/regular price increases!

retail sales and knowledge 

The price increase: This puts fear into the hearts and minds of so many salon owners ! Thoughts such as. In this economy cannot justify it ! We will lose clients! Fear ! Remember at the begging know your target market. Inflation the cost of doing business effects us all. If you don’t keep pace with inflation you will fall behind. Small price rises keeps you in step with inflation it keeps you profitable it keeps you growing,it offers a wage increase through increased takings.You don’t have to have an increase every time across the board maybe look at chemical services one time whilst cutting and styling maybe beauty another.

As a salon owner you cannot afford to let this one slide if you do you will be working harder to see less! The same applies to discounting do value added but don’t ever discount your prices.When you discount you in effect have to work harder to take less or do more to turnover the same? Don’t ever put the prices up feeling guilty and discount them down this sends out a clear message we are not worthy of the price increase.

How do you market and display your retail products are your team good at selling through recommendation if your not selling your stock and its just inventory its costing you money! plug those leaks in your business 

Believe in your self your vision :

It will not serve you to call around other salons to see what they charge and price yourself accordingly. There are a few reason why most salons run at no or little Profit . They are busy copying one another! Or driving pricing down by competing in a discount driven market, the discount driven market is not sustainable and is doomed to failure.

There are formulas to set your prices that do not involve emotion We can show you how. Let’s face it – it costs the same to run a salon no matter where you are. So why not let us help you look at your salon and your target market let is show you how to have your salon in  healthy profit. I also think that we need to always look at the Why. Ask the question Why are we in business whats it for? OrWhy do we want to go into to business what is success?

Why do I suggest this I think by asking and exploring the why we get to the motive behind why we want to be in business what is true success. Why the will also help us to understand our true values this in turn helps us to follow the path to the success we want  and desire. It will help us to surround ourselves with the right team ,those who share our values and vision. Remember. Salon success. Stylist success. Business success are all linked together it’s Team success. Its never about any destination only ever about a journey taking the right people on that journey makes it enjoyable maybe even fun!

Leadership
Our industry is in constant change and is sometimes criticised. For lacking vision in some areas. However there is an ever growing body of professionals. That have a firm commitment to our industry, they have a passion for change, to raise standards through education and sharing. Leadership, education and team incentives.Will over time and with commitment give any individual that ability to do exceptional work and to be more creative. Leadership and management help create an amazing work environment for all concerned. So key for success for all concerned.
Conclusion
This journey. This career, is wonderful – Challenging. Inspiring and yes can and will be hard work. but the rewards are worth all the effort.
Thank you all for letting me share some thoughts with you today.These are inspirational, passionate, industry professionals.They have a vision. These are the people I want on my bus to learn from, share with, take a journey with. Get inspired. Connect with driven motivated industry professional. challenge your self. invest in ones /your self 

Are you driver or passenger !

 There are no guarantees in life and ones career and career choice is no different thing happen and its how we deal with them that defines us. Jobs change relationships come and go the one thing that remains after training is our skill both hands on creative and the ones we learn about people and communication about caring about being a team player. Constantly developing new skills staying current is so very important.

The salon and the S word now available in book and e book format for links to purchase and reviews Click here or on the image. 

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 The Salon & the ‘S’ Word

 Written by Mike Vallance

Essential for success: commitment, focus, drive, a willingness to make change keeping an open mind. planning. taking responsibility for ones choices making and taking hard decisions. Honesty and staying creatively challenged.

My web site is Back2myroots: B2MR feel free to check in

You can also find me here on LinkedIn on Twitter MikeB2MR and Facebook Back2myroots B2MR

 

 

 

 

 

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