It’s an unpredictable world out there. From rising costs of living to increases in energy costs and supply chain issues driving up prices, there are many unprecedented challenges currently facing salon owners. Build Your Salon’s Phil Jackson offers these three tips for protecting your salon business and ensuring you remain profitable.
REVIEW YOUR PRICES.
First things first, you need to be realistic in regards to ‘waiting until things settle down’ to review your prices. “I’ve heard of a few salons that are delaying their pricing review until things settle down but, to be blunt, things won’t settle down any time soon and you run the risk of running on reduced profit in the meantime,” explains Phil. “Holding out to see what your suppliers are doing could mean delays of weeks or even months. Far better to decide your prices on the information you have now and make an educated guess on what might happen in the next couple of months and, then implement any changes sooner rather than later.”
Phil continues, “You can take some of the sting out of the increases and ensure your prices are set where they should be by reviewing prices more frequently. Six-monthly price reviews tend to mean smaller increases and some services may not need reviewing at all.
“In times of drastic change don’t be afraid to increase sooner than that. I am certain your customers would rather that than see you operate at a loss or even have to close your doors for good.
It also helps to go digital to make these changes more streamlined. “Changing prices is far easier if you have made the decision to finally ditch physical price cards,” Phil says of making the move to online. “Make your pricing available online or alternatively, if you have something you want to physically give your customers, exclude the prices and instead provide them with a link or QR code where the latest prices can be accessed. That means that changing your prices is a simple two-minute job rather than paying hundreds of pounds for a print run of price cards. It’s also friendlier to the environment than binning a box of unused cards.”
ENCOURAGE ONLINE BOOKING.
This is perhaps the simplest step of all, and one that most salons have already embraced with open arms. Says Phil of embracing technology to ensure security in your salon bookings, “Not only does it mean you can take bookings 24/7, it means your customers are shown the latest, up-to-date prices at the point of booking too.
“It will never suit everyone but it can make a huge difference to your business, particularly if you implement a booking fee to reduce no-shows.”
REVIEW YOUR COSTS.
Finally, remaining nimble as a salon business and constantly reviewing costs is critical. “Some increases are unavoidable but shop around as much as you can for utilities and other supplies,” Phil explains. “Even 1% of costs saved can make a massive difference to your profits over a year.”
“There is currently an affection for small businesses and salons that means your customers are less price sensitive. The best way to weather a financial storm is to remain nimble, adapt quickly and keep a firm grip on those things you can control.”