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Salon discounting is it good for business?

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Salon discounting

Salon Discounting is it good for business? 

Does it pay

Or 

Is discounting driven by fear? It can only lead to working harder for less!

Is it short sighted and destructive? Consider what creating a brand and culture on discount says about you and your team . We are not worthy ! We are desperate for business. Consider when you give a 10% discount to encourage business you then have to do more to make the same amount ! How can this be getting ahead looking towards growth? for every 1000 $or £ you take your giving 100 away?  Staff have to work harder to earn less it’s negative its destructive. It will break you down . Concentrate On. The standard of service you offer the skill and training of your team.the experience you deliver be unique don’t compete with those discounting around you charge for who you are and what you present.

I want to help you to see that success is not discounting ! I want to help you develop a strategy for real success!

How much discounting goes on in your salon?  Have you ever considered what this might be costing you and your business?  Be honest! The answers is a lot!  Groupon  who gains here well the client looking fro a deal does Groupon does does the salon or stylist? No the client who looks for these deals is not going to become a long term client they are deal hunters. Concentrate on what you have grow your business like you would your garden with TLC no quick fix is going to bring in clients. Discounting is not the answer is a road to know where. Vision vales goals > marketing strategy . seek help if required .

How this happens.

How does this discount come about. Stylist like to reward their clients make them feel special but at who’s expense?. This happens all to often in fact i have been guilty of it when work in a salon it’s such a easy trap to fall into.

Example.

A regular client comes in for a full head of foils. You like and enjoy time spent with this client maybe she tips well? When the service if done and it’s time to pay you say ‘I have just charged you for a half head today’ Da! Why. She came to get her hair done. She expected great service. She expected a great job. Did you short change her with the foils? Did you rush her through? Then why give the discount! are you not worth your fee? Where do you draw the line? This is not necessary your clinet comes to you for the great job the great service you give concentrate on that !

Another great one is a client is have a tuff time money is tight, [well it is for us all]  but you feel sorry for her. After the service you say i’ve take £10.00 or $10.00 off your bill today hope things get better for you. A great gesture but what ever she is going through she chose to get her hair done she knew the cost.

Who’s money as the stylits are you giving away by no charging the full amount? The salon’s yes certainly and your own as your commission will be less. In both the above cases you are putting out messages . One price is subject to change if we or I so chose. I know we over charge or are slightly expensive but i can be flexible!!! NO NO NO

What we need to see at the end of the day good days work good days takings! It’s not me not being caring or understanding it’s business it’s drawing a line.If your a member of staff paid on commission your short changing your self and the salon. If your an owner what do you think this might be costing you weekly or monthly? Making clients feel special is what we should be doing every day every visit. Doing an exceptional job each and every time. We are in the business of service we offer skill and expertise. We you don’t need to cheapen you self with discounts.

Consider both as management and indeed a staff team if you did not discount and put all the money aside, what could it be used for? In house training, going to an education event or seminar, new piece of equipment. Things that both you as owners or stylists team members can and will benefit from. These newly learned skills or new equipment will in the end add to your skill level and improve the service you offer. Ultimately the client benefits.

 Hard nut to crack!    

This is a hard nut to crack in any salon. For owners when you have a staff meeting it may not go down very well. You might be thought of as being mean penny pinching. Stylist’s you have to think about the business side of this if it were your salon would you want hundreds of pounds or dollars a month just not coming into the business?

To end this starts with a group meeting draw aline no more as of now! If you have a receptionist then she will be key to stopping this. If not then careful monitoring of the day book the services being done and fees charged will be required, a little re education. You will notice a difference over a very short time it adds up!! Consider this when an existing client recommends you to a friend or work mate  do you want to be recommended for.

A. the great service and job done!

B. the great discount that the friend will now expect?

                                                                   Discounting is money floating away!

1. Discounting .

This is taking off either a pound or dollar value or a percentage of the clients service bill total. This is relatively easy to find and stop from happening.

2. Undercharging.

Often occurs when discounting is trying to be covered up. It can happen as full head of foils charged as half head or T section, Cut blow dry charged as wet cut, it goes on not always easy to find, not always easy to stop 

3.Discriminating Discounting.

This is a really odd kind form of discounting because in this instance you discriminate against your good clients that pay you full price for their services and they visit regularly. While other clients that only have some of the salons services and visit irregularly are discounted every single visit. You know the students, the senior citizens, the children and so on. You have a consistent policy across the board.

4 A Welcome or incentive discount.

Another one that I see a great deal of. Special opening offer 30% off any one service on first visit. What does this say? We are expensive.We over charge, but come in a for a one off cheap job!!! your new your exciting your professional your offering something new and exciting why cheapen this with an opening discount!!!  

                                                      Front of service friendly, efficient, professional, receptionist!


When you discount or undercharge where do you think this money comes from?

It does not come from the money you would have paid for the salon rent, it does not come from the money you pay for your professional products and it certainly does not come off the wages you pay your team.

The discounted money comes out of your profit. That‟s the only place it can come from. And the profit is essentially what you‟re in business for, is it? The discount that‟s given to your clients is taken from the money needed to grow your. If you feel that you need to appeal to all markets and so wallets then this is why or when you have a structure of fee’s based on experience.

An example of this that works well would be.

A newly qualified stylist might get all the students Why? Well one newly qualified the charges might be more affordable to a student, students have friends , students will not always be students. The goal being build up trust respect grow together as one gains more experience the fee’s go up as the student becomes qualified she they can afford a little more.win win no discount!

Make you staff aware that when discounting they are not only reducing their fee so their commission but they are giving away your profits.  The profit you need to grow and support your business.

                               A happy client happy with look happy with the service happy to pay!

Past business how it worked without discounting ! value quality skill service! 

I used to work doing education on the road a great deal but i also had for down time a home based salon it was a great business specialising in colour and colour correction. I charged an hourly rate occasionally a new recommended client would book for an a consultation prior to booking an appointment. this was how i worked.

Moving on hourly rate and not having the huge running cost of a traditional salon made what i did great value for client kept me fully booked weeks in advance.

However if a client ever said i was recommended  to you by ****** she said you great really know your stuff and your sound so much cheaper than the salons in town!! Hum I would say really thank you for coming but this is not going to work for me! If your only hear because it sounds cheap then i’m not the guy for you!!  I built up a business and a reputation of on not being cheap! it works it really works.

The ‘Three R’s’ 
”Reputation. Recommendation. Retention”. 
It’s not built on that constant looking for new clients it’s looking after what you have! It’s investing in your self and your business and those around you.

Conclusion

This journey, this career, is wonderful – challenging, inspiring, and yes, hard work.

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.

I also think that we need to always look at the WhyAsk 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.

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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!

Mike B2MR

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.

 

The Salon & the ‘S’ Word

 Written by Mike Vallance

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

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