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Three Easy &  Simple Tips to Improve Salon Profitability

THREE EASY &  SIMPLE TIPS TO IMPROVE SALON PROFITABILITY Have you every said to yourself: "My goal is to be really, really profitable?"  At the same time the business expenses keep eating up the profit-----and you are trying to figure out why. Here are three easy-to-do tips to improve your salons  cash flow and profitability. Tip 1: Cut out unprofitable products and services Evaluate which products or services just don't make any cents. That's right ... no profits at all.   If the service involves expense with unused product- eliminate it.  If you have product on the shelves collecting dust – clear it out.  Did you know there are charitable organizations that would like the product for their fund raisers and would provide you with a tax deductible receipt for the full retail value? Tip 2: Target new customers from within groups We all know the saying, "Time is money." Time actually serving customers earns money. Time soliciting customers, costs money. Profitable businesses spend the least amount of time as possible on business activities that don't bring in money. Here’s the point:  If your clients are not bringing in the amount of money you need ‘per hour” to operate your business-----you best make price adjustments to continue your operations or focus on finding clients who can support you? Who is your target market?  If you say: “Anyone with hair and skin!” ---your scope is too broad.  Focus on whom you desire as a client.  Focus on where you will find that group of clients.  Target your printed, web, and word-of-mouth advertising to reach the potential new customer.  Time is money. Tip 3: Outsmart your deadbeat customers There are two types of customers you don't want to serve—the low payer and the no-payer. The low payers will have the least amount of service possible to pay the least amount of money while absorbing time that cuts into your profitability.  The no payers always want the “little” extra’s for free-------like pieces of haircuts “free” so they can extend the life of their haircut which eventually looks terrible…..but giving you credit. The best way for service-oriented businesses to take command is to recognize the “deadbeat” tactics and outsmart them.  Simply saying:” I sure can do that for you, however; I will be charging you $xx for the service.  It might be more cost effective if I did the complete service and save you money.”  Your controlled professional attitude will take them off guard….yet provide you profit. It’s true; the best way to improve profitability is to stop unprofitable, time-consuming activities. You don't need to be a rocket scientist to build a profitable salon. All you need is a willingness to be selective in what you do, who you serve, and how you get paid. You can do it. Isn’t it time you take your business to the next level?  YOUR SALON COACH is worth the investment! Back to Top