Moving Through Difficult Times In Your Salon Business.

“Be prepared to pivot. Be incredibly focused.

Nina Tulio

In Feb of 2024, a survey managed by SLACK reported 40% of small business owners would consider this their make or break year. In May, Bank Of America reported that 65% of small business owners expect to grow their revenue in 2024. Interesting right?

Our industry is going through a shift. From my experience. There are salon owners I work with that are busting at the seams and don’t have the manpower to support the uptick in business. On the other hand, I receive heart breaking emails/DM’S from owners and independents saying they are the slowest they have been in years. They find themselves having to promote and do things in their business they haven’t had to do in a very long time to drum up new business and keep current clients.

We have been through A LOT in the last 4 years. But we are strong and resilient. And as long as we focus on the right things we can get through this too.

I am no stranger to going through difficult times myself. When I was a salon owner I went through the toughest time financially while having a team to support during the recession of 2009. I was so scared I would lose my business. I knew I had to pivot and get really focused in order to keep my business open and remain supportive to my team. It was rough but we made it out. My salon went from 0% profit to 17-23% profit in a few short years after the recession. I tell you this to let you know there is hope and light at the end of the tunnel. I got you! But we have to stay focused, have a plan, and be CONSISTENT in all ways. Let’s move on to some tips!

1. TAKE a step back and reassess your business.
   First look WITHIN the business. It will tell you everything you need to know. Data doesn’t lie. The first thing to do is notice if and where consumer behaviors have changed. Don’t look on social media to see what is happening in other salons. Look within YOUR business.
   
   1. Pull a Frequency of Visit report. Has your FOV decreased? Are people stretching out their appointments?
   2. Look at your salon Average Ticket. Has this decreased in the last few months. Are clients spending LESS per visit.
   3. Look at client count. New client count and total client count. Have you lost volume? By how much in the last few months or so?
   4. Look at client retention. If you are attracting new clients but are NOT retaining them. Your business is not growing.
   
   SOLUTIONS- Once you gather the data. Start to see where things have shifted and start creating a plan to move the needle. If you see a decrease in NEW clients. Look to see what has worked well for you in the past and go 100% in on that. Google reviews, social media, FB groups, Referrals, Business to Business Partnerships. What has worked well for you? Dive in and be CONSISTENT. Create a solution for each area and get to work.
   

2. Get Your Prices on POINT - Forbes Reported “Inflation is still a concern for small businesses, and 84% say it currently impacts their businesses.”
   Due to inflation, small businesses have had to increase prices, manage cash flow differently, and cut back on spending. But here is where things get sticky. If you have NOT increased your prices in your salon business over the last year/year and a half. You could be falling short in sales and profit. Now you have to work so much HARDER just to pay the bills.
   Pricing is NOT an emotional decision. It is a business decision that affects your ENTIRE business.
   
   EX: If you are under charging by just 15 cents PER MINUTE on a 2 hour service. You are LOSING $18 on this service. It may not sound like a lot BUT! Do this on 16 services a week = $288 x 51 weeks = $14,688 in LOST REVENUE. If you have a team of 4 x 58,752 lost in 1 year in revenue.
   
   -Start here. Calculate your price per minute(PPM) on a root touch up service, partial blonding service, and a full blonding service. Which do you think should have a higher PPM? It is your full blonding. WHY? It takes more time and more product. If your full blonding is priced less than your root touch up. It may be time to increase that service.
   
   -CALCULATION for PPM = The price of the service divided by the minutes of the service. $ 200 service/ 120 minutes = $1.66. Calculate your TOP 3 most visited services to see where you stand.
   
   Resources = You can check out my FREE pricing class for more in depth info. And download my FREE 3 tiered price increase method called the Pricing Upgrade to help you increase with confidence.
   

3. Focus on VALUE Like You Never Have Before-
   Clients want to do business with people they know, love, and trust. Well if you don’t engage with them how will they get to know, love, and trust you? Our industry is BUILT on relationships. I will never forget what my mentor told me at 23 years old. He said “This business is 20% hair and 80% the way you treat people and make them feel.” But somehow over the last 2-3 years we have lost our way. Now more than ever it is important to create a unique, customized, personalized experience for your clients. HOW?
   
   1. Provide a client feedback survey at least once a year for current clients asking them how you can better serve them. Send a text/email feedback survey to NEW clients within 24 hours of their first visit. Use google forms or Jotform.
   
   2. Create a customized salon experience by creating an intake form that is sent out before the client arrives for the first time. This would allow you to get to know them a bit before they arrive. And even upsell them. If you are in a suite you can customize their experience even more by asking which essential oils they prefer, snacks they like, and even which genre of music they like to listen to.
   

   3. Stay in touch with clients in between appointments with text/email campaigns that are informative but educational. Stay in front of your clients between appointments. Give them tips and tricks to help them care for their hair at home. Let them know what classes you have taken and how excited you are to apply what you’ve learned when you see them. “82% of small businesses have implemented engagement tactics with great success. 38% utilized direct marketing (direct mail and email newsletters.)”
   
   Bonus tips- Have a strong client consultation, create an elevated 15 minute shampoo experience, offer a welcome package for new clients. And Be YOURSELF! Be authentic. People want to connect with real people.
   

4. Monitor your PROFIT- I cannot stress this enough. Pulling a profit and Loss statement MONTHLY is essential. You have to be MINDFUL of what is coming in and going out of your business. Yes, sales are important. But what you make is just as important as what you keep. As an owner you have to make adjustments and be ready to pivot at any time. And sometimes this means scaling back on purchases, memberships, marketing dollars, and even cutting back on your own pay to cover the team’s payroll. “70% of business owners say they’ve “made tradeoffs” to maintain profitability. The tradeoffs include increasing prices 47%, reducing their own salary 32%, and reducing marketing costs 24%.” Are you aware of what your target profit should be?
   At least 50% for Independent Artists and 20% for commission owners.
   
   Check out what your profit margin here with my FREE profit and product usage calculators.
   

5. Focus on GROWTH - Dial in your target market. Is it the same as it was 3 years ago? Focus heavily on Google reviews. Clients rely on reputation when looking for a new salon. If clients are stretching our their appointments you have to start looking for new clients that align with your brand. Referrals and business to business partnerships offer great success. Focus on increasing your average ticket, and frequency of visit. You will be surprised how much money you are leaving on the table with the clients you already have. Keep in mind. It’s not all about attracting new clients. You have to nurture the relationships with the clients you already have.

*Stats Provided by Forbes

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!

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