Updated: Feb 12, 2019
We all want to make more money but the harsh reality of our industry is that most salons do not make money. The salon and spa industry grows at a rate of 5.5% annually and, although consumer demand is high, competition is fierce. Today, our clients are more aware of value received for money spent and have high customer service expectations. They will no longer give a salon or stylist a “second chance”.
Eighty percent (80%) of salons fail within the first two years of business.
I’m sure every salon owner would love to pay their team more but...there's usually no more money to give.
Money, and the desire to have more of it, was the number one topic of conversation in many team member reviews I conducted.
Team member: "I need to make more money".
Me: "Well, what can you do to make more money?"
In order for a salon to profit, clients must return and goals must be set, tracked, and achieved.
Salon and spa owners promote the business (and their team) by advertising, marketing, and implementing systems for sales and client retention but it is also the responsibility of each individual operator to grow their own business.
Every person in the salon or spa (including concierge, apprentices, and attendants) must be providing outstanding customer service, asking for referrals, up-selling and cross promoting services, pre-booking appointments, and retailing.
Service providers should be handing out business cards, asking for referrals, using social networking sites (every Facebook friend could be a potential client), educating their guests, and educating themselves. Being a stylist, you work under the umbrella of a salon but you must contribute to finding and retaining your clients if you want to see your paycheck grow!
Salon and spa owners and managers must help their teams along the way by mentoring, posting goals, performing regular progress reviews, and rewarding positive behaviors.
When salon owners truly mentor and coach their teams, their employees begin to take on more interest in the sustainablity and success of the business.
It's a WIN/WIN but in order for this to work, a salon owner needs to focus ON the business rather then spending all of their time working IN the business. If you need help, invest in the Salon Skipper coachiing package. We provide everything you need to learn the goals for best practice and tools to guide your teams such as a customizable Team Manual, Service Provider Review Forms, a Written Warning Template and more!