Jenni Gilbert No doubt, as you read this, you’ll be under the pump trying to keep a semblance of sanity amid the pre-Christmas/New Year madhouse. But don’t lose sight of your business goals and planning for 2017. Matt Williams, co-founder and managing director of Professional Beauty Solutions*, shares his top tips.
There are only three ways that you, as an aesthetics business owner and/or manager, can grow your sales:
- Increase the number of clients that you have
- Increase the frequency with which your clients visit your salon, spa or clinic
- Increase how much your clients spend with you at each visit
Let me quickly demonstrate some really exciting growth for a salon I did some work with recently. Let’s say the salon or spa had 300 active clients visiting an average of eight times a year and spending $120 at each visit. The total sales for the year = $288,000.
Now look at what happens if we increase the number of active clients by 10 percent to 330 and then we get them coming into the salon only one additional time each year. Further, every time they come in we get them to spend $150 instead of $120. The total sales for the year now = $445,500! That’s an increase of more than 54 percent.
Sound simple? It is. However, it isn’t always easy, so let me give you a few of my favourite tactics for increasing each one of these areas.
Increase the number of clients that you have
There are hundreds of ways for small businesses to generate new clients – from window signage through to mail outs and print ads.
But the one thing that will more often than not out perform any other method for generating new clients is word of mouth.
In 2016, word of mouth advertising has been easier and more powerful than ever thanks to social media – so make it a focus in 2017.
All you need to do to take advantage of this proven source of new clients is to teach your loyal existing clients to Like and Share the content on your business’s Facebook page.
The one key here is producing content worth sharing, if you want more information, PBS produces monthly Facebook live trainings on how to do this.
Increase the frequency that they visit your salon
All I can say is that you absolutely must rebook your clients every time … or at least shoot for an 80 percent rebooking ratio.
I used to get my hair cut at a salon that never rebooked me and on average I would get back in for a cut every five weeks, so that is 10 visits a year.
Compare that to my current salon that rebooks me in every three weeks without fail, so I visit them 17 times a year! That’s a 70 percent increase in the frequency of visits.
Increase how much they spend with you at each visit
My first suggestion here is to increase the prices that you charge for your services. So often I see salons and spas under-charging for the treatments and services that they offer.
The next best way to increase the average spend is to retail. Your retail to service ratio should be at least 30/70, but top-performing salons and spas will get to 50/50 and beyond.
Unfortunately we often see a lot less than this. It kills me that pharmacies and department stores still hold the overwhelming majority of retail cosmetics sales, when salons, spas and clinics have better products to offer alongside a far greater level of service and advice for the client.
Letting the client continue to buy their skincare from a pharmacy or their makeup from a department store is bad for the client and bad for your business.
Just simply having your team using all of the brands you stock and conducting weekly in-salon mini-trainings where you all discuss the benefits of various ingredients in products that you offer will make growing retail sales easier than you would expect.
Again, if you want more information on how to retail more easily, PBS runs workshops and Facebook Live events on how to do this.
If you set your target to grow each of the above mentioned areas by 10 percent you will enjoy overall sales growth of over 33 percent, which can be life-changing for many business owners.
- Professional Beauty Solutions is distributor of Image cosmeceutical skincare, Sunescape sunless tanning system, Cherry Blooms salon eyelash extensions, Bestow range of organic super-foods to nourish to nourish skin from within, Body Sugaring Australia hair removal, Youngblood Mineral Cosmetics, organic Wot Nots makeup removal wipes, and Dermalux LED phototherapy system.
