I Want To Make More Money!

I am sure that most salon owners and managers have heard this one before..."I want to make more money". The funny thing is...there's usually no more money to give. We would love to be able to pay our team members more, have a solid emergency fund in the bank account, and be living the high life ourselves...but the reality is...most salons DO NOT make money.

Money, and the desire to have more of it,  was the number one topic of conversation in each and every team member review I conducted. When the topic was brought up it usually went something like this: "I need to make more money". My response was "well then,  what can you do to make more money?" I would explain that we promote the salon (and our team) by advertising, marketing, and implementing systems for client retention but it is also the responsibility of each individual operator to grow their own business.

The client bus (you know, the one that pulls up outside the front door and drops off enough guests to fill the salon for a week) DOES NOT EXIST.

Your team members must be providing outstanding customer service, asking for referrals, upselling services, and retailing...this is how they will MAKE MORE MONEY...and... you must help them along the way by mentoring, posting goals, regularly reviewing their progress, and rewarding positive behaviors.

Ask us for ideas on how you can make more money :)

Budgets: A Must Have

When I speak with a salon owner for the first time I always ask what they love about their business. A common answer is "I'm the boss". When I ask salon owners what frustrates them about their business I am often told " I am not making any money".

It can feel like you are carrying the weight of the world on your shoulders when you are running a business that isn't making any money or is drowning in the pool of debt.  

Typically salons are opened by talented stylists who have a passion for their trade, a large clientel, and are "sick of raking in the dough for someone else". Unfortunately, it takes more than talent and a loyal following to successfully run a salon.

Running a salon profitably requires dedication, an entrepreneurial spirit, the ability to wear many hats (owner, manager, mentor, service provider, etc), an understanding of business, and a budget.

Do you have a budget? Many salon owners do not. They have no idea how much money is being spent or how much money should be spent. Having a budget and tracking your spending will have a positive impact on your bottom line. 

By creating a budget that incorporates benchmarks we are able to dramatically decrease spending and increase profits.

If you're a salon owner who is tired of carrying the weight of the world on your shoulders, give ITB a call. We can help.

Inventory Control: Dust off the bottle

I recently had the pleasure of introducing myself to a group of sales reps from a local distributor. As I am constantly performing market research to better the quality of service I give to my clients, I asked the sales reps to participate in an "In The Black" survey. Sales reps spend 40+ hours a week in salons all over the Lower Mainland. Two of the questions I asked were "What do you feel is lacking in the salons you service?" and "What do you think the salons you service need the most in terms of business education?" Their answers were unanimous: RETAILING SYSTEMS AND INVENTORY CONTROL.

According to the Professional Beauty Association Salon/Spa Performance Index for 2009, Fourty-seven percent of salon and spa owners reported lowered retail sales.

Have you set a budget for retail product purchases?

Is your salon automated?

Have you adjusted your retail purchases to reflect your retail sales or are you constantly dusting off those bottles?

Have you implemented retailing systems, giving your staff tools to help them succeed with retail sales?

Do the products you sell reflect current industry and consumer trends?

Retailing not only helps pay the rent, it increases client loyalty and retention.
In The Black can help you set purchase budgets based on industry benchmarks, develop systems for inventory control, and assist with retail sales strategies.

It's time to put down the feather duster.