5 Ways to Increase Your Bottom Line

Maybe your salon has been impacted by our capricious economy — or maybe you’re simply looking to boost your bottom line. Whatever your motive, we’ve got you covered with 5 effective strategies for raising revenue. By unearthing new ways to service and attract clients, you can increase everything from your average transaction size to your salon’s foot traffic.

Increase the Size of Your Transactions

In essence, increasing transaction size means trying to get individual customers to purchase more during their studio visits. Maybe you’re already familiar with upselling. When a client comes in for a cut, you’re going to ask if they need a refill on shampoo, right? Consider supplementing the products you’re already stocking with related, eye-catching items. You don’t have to go big, by the way, to have an impact. Putting out a fishbowl of beautiful fabric hair ties and charging one or two bucks a pop will add to your bottom line over time. If your clients are constantly commenting on that hot pink lipstick you love to rock, consider setting out a mason jar of lipsticks. You don’t want your salon space to feel overcrowded, sure, but that doesn’t mean you can’t find creative ways to bring in a little more cash. Remember, the more of these “extras” your guests purchase, the more they’re spending during a routine visit — and the more revenue you’re collecting.

Reward Frequent Guests

If you’re able to employ the above strategies and you’ve convinced your guests to make more purchases more often, then reward them for goodness’ sakes, with incentives, discounts or an extra service here and there. Dependable clients, after all, are helping you maximize your cash flow; thanking them with a few perks lets them know that you appreciate and value their continued business. Click here for more ways to show clients the love.

Bundle Your Services

Do you offer a full menu of services in your salon? Then consider “bundling” these offerings for clients who are willing to book multiple treatments during a single visit. Wrap a cut and color into a package with a deep conditioning treatment and a spa item such as a pedicure, for example. Giving a small discount for these sorts of bundled purchases typically results in a higher overall profit margin. Here’s a little more information on the art of bundling.

Host a Special Event

Conducting special events is a phenomenal way to broadcast your brand to your local community. Put on an educational seminar on a Saturday morning; grab a couple dozen bagels and coffee, and invite clients and their friends to come to your studio to learn how to do a killer blowout at home or style an up-do like a pro. If you’re unveiling a new product line in your studio, you might hold a “sneak preview” night for it — or for new services you plan to offer. If charity’s your thing, find a cause and do a cut-a-thon or drive, and ask your local news station to cover it. Finally, for your best customers, consider tossing an exclusive event such as an upscale wine and cheese party; don’t forget to ask your invitees to bring a friend! Check out the Morgan Hill Cut-a-Thon!

Partner with Other Professionals

Exchange cards with local business owners and companies that sell products or services that might compliment yours. Refer your clients to your favorite area professionals, and don’t be shy about asking these folks to return the favor! By teaming up with other entrepreneurs, you’re essentially additional salespeople at no out-of-pocket cost. You can take this concept a step further by partnering with other Sola Salons professionals working in your building. If you specialize in color and a friend down the hall is an expert waxer, why not team up and share clients? For more on strategic partnerships, click here.