Thursday 12 July 2012
7 tips to help your salon beat the recession
We are all feeling the recession and, as much as people say the beauty industry is less affected by it, the bottom line is business ain’t what it used to be! Attracting clients is getting harder and many salons try to keep their head above the water by slashing their prices.
There are other solutions, which do not involve selling your services at a major discount but instead focus on quality, customer retention and cost control.
1. Run a tight ship
In times of recession the best first thing any company struggling to keep their head above the water should do is look to streamline their business. This means identifying where costs can be reduced and reduce them. A great way to start is reviewing indirect costs such as insurance or your energy providers to see if you can find it cheaper.
Also avoid waste. Good stock control is especially important in difficult financial times, from your stocks to any other consumables.
2. Reduce the number of "no-show" appointments
No-shows are a massive problem in this industry and cost salons a considerable amount of money every year. SMS reminder is your best option in that case. It is quite cheap and will help your clients remember their appointments, or at least call you to reschedule if they can’t make it. If you use salon software and take booking online you can also prevent this by charging customers who don’t show up.
3. Save on the cost of telephone calls
Look at reducing your phone bills every quarter by installing VoIP technology. For those of you who don’t know what I’m talking about, VoIP allows you to make your phone calls over the internet at the fraction of the cost of a normal phone call. Adopting this system will save you hundreds of pounds on your annual business phone bill.
4. Increase customer retention
In a recession period, it’s harder than ever to get new clients so you can't allow yourself to lose any of your regular ones. The best way to do this is to continue to provide an excellent customer service. Don’t hesitate to run a customer survey or introduce a brand new loyalty system to show them you care about them and reward their loyalty. If you satisfy them, they will return and spread the word!
5. Don't cut your advertising budget
Some salons, to reduce their expenses and "breathe easier", cut their marketing budget. Big mistake. Advertising helps get you known, if you stop doing it, how will you ever attract new clients and generate more revenue?
Instead of cutting these funds, invest them differently using less expensive marketing channels. You probably already have a Facebook page, but did you ever use one of the promotion tools this network offers? Create an advert for example and increase your exposure in less than a week!
6. Keep investing in training
In a recession period, it's more important than ever to invest in your staff. They are your best resource and their work drives revenue! You therefore have to make sure they are happy to grow with you to ensure your business keeps growing. Allowing them to go on training courses and expand their skill set will not only keep them motivated, but will allow you to offer more services to your clients.
7. Stay positive
Even if your salon is bearing the brunt of the recession, don't give up. Never forget that you're the boss, consequently your state of mind impacts your staff and customers. It is therefore vital to show them your confidence and motivation anytime. Moreover, the more you think about the difficulties you're facing, the bigger they will appear to be. You can't move on if you're demotivated so stay positive, success takes time but comes to those who deserve it.
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Thanks for discussing those tips! I've learned a lot and I really appreciated it.
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