Hair salons are a booming industry in the U.S., but too many owners fail to maximize their revenue potential because they’re focusing on costs rather than generating more customers. These six strategies will help you get ahead of your competition, and guarantee sustainable growth for any business that invests in them.
The “plan methods of maintaining and increasing salon revenue” is a blog post about 6 strategies that can be used to boost the revenue for your hair salon.
This post is part of our Salon Business Startup Guide, a collection of articles to assist you in planning, starting, and growing your salon!
Do you wish you could own your own hair salon?
If you’re at a crowded market, you may be wondering how to stand out. Is it necessary to utilize just organic products? Should you go for trendy hairstyles, a once-in-a-lifetime adventure, or something else entirely?
If you currently run a hair salon, you’re probably thinking how to boost sales and take your company to the next level.
In this post, we’ll look at what has worked for other firms and what the data has to say so you can implement techniques you already know will succeed.
1. Offer gift cards or vouchers for purchase.
Selling gift certificates isn’t just a fantastic idea; it’s a no-brainer when it comes to increasing your hair salon’s income.
Gift card sales are estimated to reach $140 billion in the United States alone in 2016.
Allowing current customers to buy gift cards or gift certificates for friends and family not only attracts new customers, but it also increases sales and ensures that you get paid in full right away, even if the recipient never uses the gift card or certificate.
Make sure your consumers are aware that you offer gift cards in the first place to encourage them to purchase them. Advertise on the counter, in shop windows, online, and by email. Encourage your workers and stylists to promote them.
Also, make it as simple as possible for individuals to buy them. Allowing consumers to buy gift certificates straight from your salon’s website is also a fantastic idea, since e-gifting is on the increase. Make things as simple as possible.
You could even give individuals who buy them a discount—maybe a $100 gift card for $90?
Don’t forget to use social media to inform folks about how they may use their gift vouchers. You name it: birthday gifts, Christmas gifts, thank you gifts, graduation gifts, and so on.
2. Put up a referral campaign.
When done correctly, referral systems are a win-win situation. When a consumer suggests a friend, they both get a discount—a money-off coupon, a free product, a free consultation, or some other service—and you get a new customer!
This is a wonderful strategy to bring in new clients while also cultivating loyalty among current ones.
In fact, a client referral program may be just what you need to turn your failing company into a successful one. According to a research done by The Wharton School of Business, a recommended client is 18 percent more likely than someone who finds you on their own to remain with the firm over time. Customer loyalty figures are typically influenced by shared bonds—or, in this example, a common hair salon.
Of course, you must still be smart when selecting the prize offered in return for the recommendation. Consider how long each service takes and how much the items cost. Naturally, you don’t want to provide someone a service that takes too much time or costs too much money. On the other side, if the incentive isn’t worth it, the program will fail. A program that requires a consumer to recommend 10 people before receiving a reward is unlikely to succeed, but a one that requires a customer to refer three people in return for a free blowout is considerably more likely to succeed.
3. Create a “frequent flier” program.
If you believe frequent flyer programs are exclusive for airlines, you are mistaken. The hair salon version of this campaign might be as easy as providing an incentive for first-time or new clients to return. It’s a fantastic method to keep folks interested in coming back for more.
In fact, one hair salon has had great success with this marketing strategy. Clients who prepaid for a particular number of appointments get a free visit from Davis Hairdressing in Massachusetts. If new clients return for a second visit, they will get a 50% discount.
A loyalty program is at the heart of this strategy, which is designed to keep consumers coming back for more. There are other loyalty program variations, so if you don’t like the notion of providing up to 50% off on a repeat visit, there are hundreds of different options.
Davis Hairdressing, in reality, offers a service named “The Fling.” You pay a one-time cost for unlimited blow drys in a month when you buy this service or subscription.
To understand more about loyalty programs, read this in-depth post on the Hubspot blog on how to utilize them to create value, and then grab their free loyalty program guide.
4. Convert one-time services into monthly subscriptions
You’ve probably heard how subscription companies have impacted sectors all around the globe. Netflix is in the video rental business, AirBnB is in the vacation rental business, Uber is in the taxi service business, Spotify is in the music sales business, and so on.
It’s no secret that these programs are very successful—recurring money keeps them continuing and growing—so why not use this concept for your own service offerings?
Value for money and convenience of use are major selling features for subscription companies. You don’t have to worry about arranging an appointment or finding additional money when you subscribe to a service since it’s all paid for up front.
Vive, a New York-based firm, has entered this industry. You may secure last-minute blowout appointments at top tier hair salons in New York and Chicago if you subscribe to one of their three service packages. “Blowout bars” and hair touch-ups are a New Yorker fixation, if you didn’t already know.
Given the importance of cash flow to a company’s existence, a subscription model is a viable approach to guarantee ongoing income. “All companies struggle with cash flow,” says Lane Fisher, a lawyer at a Philadelphia legal firm that specializes in franchising. “A recurrent [membership payment] gives stability.”
How can your hair salon achieve the same level of predictability? Consider what services you can provide as a monthly membership and take a page from Vive’s book.
5. Try out client booking software.
Picking up the phone to make an appointment with their hair stylist is a bother for some individuals. In fact, 25% of millennials (those under 35 years old) prefer to arrange appointments online, while 35% of customers prefer to plan meetings outside of work hours.
You may be losing revenue if you don’t have a 24-hour online booking system.
90 percent of clients prefer arranging appointments online, according to a poll done by online booking system Acuity. Not only that, but 96 percent of companies prefer accepting online reservations since they can receive payments promptly, decreasing no-shows and so avoiding wasting time that might have been spent earning money. It also saves time and money by reducing the number of back-and-forth chats and phone calls, as well as simplifying the whole process.
If those numbers aren’t enough to persuade you, consider that 50 percent of firms increased after using online booking software, according to the same study of over 18,000 organizations.
Take a peek at Capterra’s interactive graphic of the top 20 salon software scheduling services to choose an online booking platform for your salon. Salon Iris, Millennium, and SuperSalon are the three most popular options as of 2016.
6. Find a specialty and hone in on it.
If you try to be good at everything, you’ll end up with nothing. You may set yourself apart from the competition by concentrating on a certain specialty. And, with so many hair salons to choose from, it’s critical to stand apart.
You have the option to directly meet these demands by taking the time to understand what your clients need, desire, and need (also known as market research). This will also assist you in determining what services to provide, what items to store, what voice to use in marketing material, and how best to educate personnel to meet their demands.
It’s not always viable for new firms to specialize right away, but if there’s a market gap—or a sector that hasn’t been addressed in your area—zoning in on that market might be your passport to success.
According to Salon Today, there are fresh niches waiting to be discovered. Men’s grooming services and goods, express services for the uber-busy, and curly hair salons are three increasingly popular categories you may wish to investigate.
If you’re still stumped as to who your target market is, check out our guide to target marketing, this story on how to carve out your niche with innovative marketing methods, our thorough guide to defining your target market, and this piece on rocking your niche.
Take your company to the next level.
Have you begun thinking about how you’ll run your company? If not, make sure to go through our database of free example business plans, which includes many hair salon business ideas. If you know of any more revenue-boosting tactics for hair salons, please tell us about them in the comments section below.
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The “methods of improving working practices in beauty industry” is a blog post that provides 6 strategies for boosting revenue for your hair salon. The strategies are guaranteed to work and the blog post also includes how-to’s and resources on each strategy.
Frequently Asked Questions
How can salons increase revenue?
A: Salons can increase revenue by offering more services, such as pedicures and manicures.
What strategies will help you gain a professional position in the salon industry?
A: Becoming an expert in your craft is a great way to gain a position within the salon industry. Training yourself with both professional and home techniques will help you build up valuable skills that no other stylist has, which would allow you to become more sought out as well as step ahead of the competition.
How can I promote my salon business?
A: Start by hiring more staff. A good way to find potential employees is on sites like Craiglist and Careers24x7, where you can advertise your opening for free.
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