Successful salon owners are always thinking about how to grow salon business. Overall, the best strategies for this provide clients with more value while keeping expenses under control.
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Increase Your Salon Revenue
If you’re wondering how to build your hair salon business up and make it more profitable, one of the first things to look at as a salon owner is ways to increase your revenue. There are several ways to do this, including:
Increase Clients’ Frequency
While new customers are important, don’t forget to focus on your current customers, too. Offering existing clients the opportunity to book more services more often is a great way to boost your salon’s reputation and bring in more cash flow.
Make sure each of your clients has a great experience every time. Encourage them to book their next visit before they leave, and use an online salon booking system for added convenience. Salon software can also help you send out promotions, reminder texts and more.
Increase Spending Per Visit
Increase your overall sales by having your hair stylists upsell clients on additional services, offer recommendations for new services and add-ons.
Make sure to provide client consultations as part of an appointment and consider providing small samples of free products to encourage clients to try new retail items.
Anyone thinking about how to increase salon clientele should know that there are multiple strategies you can use.
A few of these include cross-promoting with other local businesses, finding your niche market (curly-haired clients, students, etc.) and catering to it, and boosting your online marketing presence via reviews, a website and social media.
Membership programs provide an incentive for salon clientele to visit more often, especially if you offer discounts or special benefits. You can also start a referral program for members to bring in new potential clients.
We know that it sounds counterintuitive at first, but raising prices for a service can have a positive impact on salons. Salon managers know that costs are increasing across the board, and sometimes it’s necessary to increase prices to keep up with this.
In addition, salon price increases, as long as they’re communicated well, can help your whole business to thrive- many clients are willing to pay slightly more for a service if they feel that they’re getting more value.
Reduce Your Salon Expenses
Asking “How to grow my salon business” alone isn’t enough- you also need to think in terms of “How to shrink my salon expenses.” Keeping your expenses under control is crucial to any successful expansion. Here are some ways you can do this:
Understand What Drives Overhead
Use software for salons to get a look at your costs each month, and hold regular staff meetings where you ask your team for input and suggestions on saving money- they’ll have some great insights, I guarantee.
Examine your busiest times and make sure that you have enough people to cover these, while also cross-training your team to support each other to reduce staff during slower times. Consider scaling back or eliminating roles like reception on slower days.
Create a Budget
Remember what we said earlier about a business plan? Creating a budget and reviewing it regularly will help keep expenses under control and help your salon business grow.
Cut Excess Inventory
Calculate the minimum stock levels you’ll need between orders, then only reorder when necessary. This will help cut down on wasted or unsold products and save valuable space, too.
Use Salons Software
Salon management software will help you keep an eye on everything from your busiest times and highest-performing staff, to automating admin work like inventory tracking, appointment scheduling and sending booking reminders to reduce no-shows and late arrivals.
Scale Up Your Hair Business
Now, let’s look at some ways that you can expand your whole business and bring in more customers overall.
Find Your Niche
Does your salon do anything that other salons in the area don’t offer? Maybe nobody else takes walk-ins, offers natural hair care or children’s cuts? You can grow your salon business by specializing in something that makes you unique and promoting it.
Consider The Competition
Do some online research and find out what services and prices your competitors offer, then focus on expanding your own business to bring in new clients by providing something they don’t (this can even mean adapting your brand to stand out and be unique).
Reconsider Your Space
Physical space in a salon can make all the difference. Take a look at your interior and focus on eliminating clutter and wasted space. This will make more room for better displays and more services.
Set Up a Business Plan
If you don’t already have a salon business plan, then you should consider writing one. This will help you to visualize and track your achievements, understand your target market and give you a roadmap for future success.
Online business is only growing, and the salon industry is no exception. Along with your physical location, open up a website with an online retail store, start marketing your products and salon menu on social media and offer easy online booking.
Whether you’re running a new salon or expanding an existing one, bringing in new clients and retaining existing ones is probably never far from your mind. In fact, any owner or manager is probably always thinking about how to increase salon clientele and boost income.
When considering how to grow salon business, it’s important to remember that no two salons are the same. While all of these strategies will help, a salon’s best asset is still its talented team. Why not sit down with your staff and go over some of these ideas?
Diversification Strategy: How to grow a business by diversifying successfully
The five stages of small business growth
Open services innovation: Rethinking your business to grow and compete in a new era