The more clients you have in your salon, the more money you’ll make – isn’t that right?
Actually, that’s not always the case. If you’re filling your diary with appointments but aren’t seeing big results in turnover and profit, you might need to switch the way you think about how you charge, and who you attract.
Like everything in life, you should consider whether quality is better than quantity, even with customers! So, what kind of customer do you have at the moment?
Are you cheaper or better?
Are your current customers coming to you because you’re cheaper than other salons? Or are they coming to you because they get a superior service? Competing on price doesn’t always bring you loyal customers who value what you do and, for longevity in a business, it’s the loyal customers you need who will keep coming back.
Some salons have customers who drive miles after moving to return as they prefer the service they’re used to than those more local.
Those who are willing to pay a little more, or put themselves out to get to you because they see the value in what you’re offering, are more likely to stay – and spend a bit extra.
What’s the average spend?
Ask yourself, how much is the average spend of the clients that come in? If each person through the door spends around £30 then, yes, you need a lot of clients to cover costs and make a profit. But how about if each client through the door spent around £100? You could halve your workload and still be better off!
Whether they pay more for individual treatments, spend longer with you each visit to have more treatments or increase the amount they pay with product purchases, think about how you can raise the minimum spend of each customer.
If you’re thinking those big spenders aren’t out there, think again! Beauty is big business these days and there are plenty of stories out there about astronomical amounts being spent on treatments that help women look and feel good.
The Daily Mail shared a story recently about women who spend more on skincare than they do on their mortgage https://www.dailymail.co.uk/femail/article-7866393/Meet-women-admit-spend-skincare-mortgage.html, and this one about a Birmingham mum who spends £1,000 each month on beauty treatments for her and her three daughters https://www.dailymail.co.uk/femail/article-7638531/Mother-spends-1-000-month-beauty-treatments-three-daughters.html.
OK, so these might be the extremes, but studies suggest women are spending more than ever on their appearance.
The Sun quoted in March that women who dye their hair spend around £100 every 45 days to freshen up their colour according to a poll and, on average, we spend more than £3,000 a year on beauty treatments, including manicures and tanning. https://www.thesun.co.uk/fabulous/11255983/beauty-treatment-home-lockdown/
Tweak your service to attract higher value clients
I’ve had this conversation with many of the beauty and wellbeing business owners I work with, from hairdressers to holistic therapists, getting them thinking about increasing the minimum spend of their customers rather than increasing customer numbers. As a result, they’ve all implemented simple changes in their business that have enabled them to attract higher value clients, rather than chase for higher footfall.
So, how can you attract those cash-rich clients who are willing to invest more?
The key is to consider what these higher value clients want from their salon experience and align your service to offer this, whether it’s making it more personal, ensuring their customer journey from booking to completion is seamless and pleasant, creating the right ambience in your salon or using superior products. Small tweaks in the way you run your business can vastly improve the customer experience. If customers feel great about their overall experience, they’ll see the value in paying a higher price.
I cover this in greater detail here: ‘Attract quality clients to your beauty business with these 10 simple tips’.
At Get Smart Accountants we work with our clients to drive growth and help them achieve their dreams.
If you’d like some advice or support to get your business moving in the right direction, then we’d love to hear from you.
Call Emma or Paul on 01902 212937