The endless demand to have the hair fixed, cut, or colored is one of the reasons that hair salon industry grows by 1.8% by the year. In fact, it is one of the most resistant businesses, surviving even the Great Recession in 2008. If you are planning to jump on the bandwagon and open one yourself, then there are a few industry secrets that you have to learn.
The potential for growth of a beauty salon depends on a lot of factors including population growth, economic status of the country, and the characteristics of your target market. However, these are often beyond your control. What you can manage is the marketing of your salon and your customer service. To increase your profit, you need to be smart.
Watch Out for Your Stock
Make an inventory of all the stocks that you have. These include your shampoos, gels, waxes, hair treatments, dyes, and more. If you want to run a good salon, don’t settle for cheap products. You can resell good quality hair care products for reasonable prices. In fact, 5% to 15% of a hair salon’s revenue is usually made from these sales. If you know how to capitalize on this, you’ll earn a considerable amount of money every month.
Do Your Homework on Bank Charges
Business credit card accounts and checking can incur fees, often at higher amounts compared to individual accounts. So before you sign a deal with a bank, make sure that you understand their policies and their rates. A lot of banks waive the monthly maintenance fee for the business accounts as long as you maintain a minimum balance.
Use a Merchant Service Provider
When you allow credit card payments, you will appeal more to your customers. However, you must take into consideration the cost of using merchant service providers. They might charge you for every transaction and for your monthly fee. You have many options, though. So you can choose the provider that offers you the best deal.
Manage Your Appointments
A salon software allows customers to book an appointment and pay in advance.This allows you both you and your customer to manage your time better. A day or hours before the set schedule, be sure to send the customer a reminder so that you can reduce no-shows. You might want to review your deposit and refund policy as well.
Use Vouchers and Give Promotions
Customers love getting good deals and discounts. It’s not a bad marketing strategy, especially during special holidays. Customers get to pay a cheaper price for your service, and you improve your sales and increase customer loyalty.
The strong demand for hair salons continues to provide great opportunities for those wanting to get into the beauty industry. However, in order to succeed, you need something more than hard work and high capital. You need to make smart choices, partner with good service providers, run the latest software, and improve your marketing strategy.