Did you know if you sold one Hydrate Serum a day in your salon, you’d make an extra $8,000-$10,000 a year? From increasing your retail sales to revisiting salon expenses, if you are looking to make a little more cash this year, check out these four easy ways to give yourself a raise.
1. Upsell Services
One of the best ways to improve your salon profit is to increase the amount of money your existing clients spend per visit. It’s usually your most loyal clients who are likely to spend more with you either in services or products. If you want to boost your profits from each treatment, consider what you are upselling. When it comes to salon services, look for effective treatments to add onto their regular services that will add extra profit to each appointment. However, be careful not to go into auto pilot with returning clients. Always look at their skin as if you’ve never seen it before, and be sure to review their previous purchases. Instead of asking them if they need anything, take the time to look at their purchase history and then make education suggestions as to what they may need today.
2. Increase Retail Sales
Don’t forget the importance of salon retail as a revenue stream. One of the best ways to start is to continuously stock up on products you know you can sell to everyone. Always have 2-3 on the shelf and then increase your quantities as you determine what your top sellers are. The goal is to never get down to one of anything, but also manage your quantities—as more inventory doesn’t always lead to more sales. If you think you could increase your retail sales, set yourself a target and train all of your staff on how they can help achieve it. Also consider putting time into how you merchandise your salon retail offering to make it as attractive as possible to your clients.
3. Revisit Salon Expenses & Financials
Take some time to revisit your services and sales and compare numbers year-over-year. Focus on understanding your cash flow, analyzing your numbers, evaluating your staff and overhead, and working on your financial plan for the next year. Also consider setting up an account for your retail sales. Transfer 50% of your sales (daily at first, then weekly) and use this account to purchase your retail products. Keeping your retail business separate from the rest of your salon business will help give you better financial information overall.
4. Invest in Training
You know the saying…you’ve got to spend money to make money. A well-trained salon team will find ways to offer services and products while also building relationships for future business. Your ROI (return on investment) will be well worth any cost, your team will stay on top of current trends and treatments, and you’ll be able to optimize your customer experience with better services. Not sure where to start? Consider choosing a professional partner and skincare line that will invest in you as an esthetician while also helping you grow your business. Look for partnerships that offer everything from distributor benefits to tools such as a salon finder and ongoing educational opportunities.