Salon Owners Losing MONEY…Breaks My Heart

“Marketing only goes so far. You have to understand how to manage your money!”

Nina Tulio

This literally breaks my heart: When I hear that salon owners are running their business, and it’s in a deficit (they’re negative every single month).

What I see a lot in terms of the advice is, “Okay, you just need to go out and market your business,” “Well, go run a Groupon. Or better yet. Start offering discounts.”

When your business is running in a deficit, and you are negative $3000-$4000 a month. It’s is gut wrenching. And I know, because I LIVED it. I want to share some tips to help if you’re struggling in your business.

Yes, marketing is a key component to growth. You have to get your name out there, you have to make yourself known and be present in your community. All of those things are important…BUT discounting services? There is so much more to it.

Not only do we need to focus on the front end of, but we also need to focus on the back end. If your business is running in a deficit, it could be a sales issue,
( volume or pricing) and or a budgeting and or a spending issue.

We also have to pay attention your client experience - if you spend all this money to get people in the door and they’re not coming back, you’re wasting time and money.

Checklist to guide you.

• Sales First. We look at volume = New client count. Total client count. Pricing price per minute/ hour. Average ticket. Frequency of visit. most visited services, RTS- retail to sales %, productivity for each stylist, AND most importantly… client retention. If clients are coming in and not coming back, your business is NOT growing.
  

• Price VS Time- Understanding your baseline and target price per minute/per hour is essential.
  ( My calculators track this for you) It Is also so important to understand how much time you spend with each client truly affects your bottom line. I am not telling you to rush. But having a more efficient approach to foiling and using the right products like Oligo Professionnel that focus on efficiency through processing time is key. EX: Cutting back just 30 minutes on a 2 and a half hour service can increase your PPM by 33 cents which can help boost revenue over $790 a MONTH.

• Back End - Profit margin, total spent on EACH expense category, cash flow, where you’re over-spending and are you running personal expenses through the biz. Payroll % is the biggest one we tackle and also back bar spend. My profit and pricing calculator do the heavy lifting for you in my courses.
  

• Brand - Brand story, mission, message, core values, beliefs, promise to your clients. Be clear. Be Consistent.

• Culture - Is the team aligned with your mission and are you supporting them coaching them monthly toward growth. Is their open communication? Are they being recognized? Are they being included, valued, seen and heard. Is your salon the IT salon hair stylists want to work in?

• Marketing - Marketing WITHOUT being clear on who you are, who you serve, and how you serve them better than anyone else is like throwing money out the window. We also look at what’s worked before and lean heavily into that area. IE: Referrals, Reviews, Google, Social Media, FB groups.

• Client Experience - It has to align with your brand and be so VALUE driven and consistent. The client experience starts during the booking process. Is it streamlined? Can they book online? Do you have a client intake form to create a customized client experience? Does your intake offer them added value services to boost sales BEFORE they even come in? Do you offer a 15 minute shampoo experience? Are you following up with new clients? The basics won’t work any more. Lean into elevating the client experience and pay attention to the details. They absolutely matter. YOU GOT THIS!

  Resource - CLICK HERE for my FREE profit calculator

Looking to learn more from Nina? Check out Make That Money course for suite owners/renters. And in my Synergy course for commission owners.

Psst! MORE Free resources are a click away!

View More Articles