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august 009 - Stylist and Salon Newspapers

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<strong>Salon</strong> Profits with New Services<br />

By Craig Black<br />

We all know the economy is being battered<br />

from all sides <strong>and</strong> it is getting more difficult<br />

for salons to survive. As smart business professionals,<br />

we’ve cut our expenses to the bone,<br />

pushed customer service to the limit, <strong>and</strong> yet it<br />

seems difficult to make any forward progress.<br />

Any rainy day fund we still have is being<br />

washed away by the economic monsoon. That<br />

pressure you’re feeling, which sometimes borders<br />

on panic, is you being pushed out of your<br />

comfort zone. All of the familiar solutions<br />

that have worked in the past; specials, add on<br />

services, <strong>and</strong> discounts are no longer bringing<br />

the reward they once did. At this point we<br />

start to ask ourselves what am I missing? What<br />

is the solution? And is my business going to<br />

survive this?<br />

Okay, that’s enough gloom <strong>and</strong> doom.<br />

I’m writing this article to give you hope <strong>and</strong><br />

encouragement, <strong>and</strong> also, to lead you to what<br />

may be the answer to the problem, how you<br />

can make more money. If after a long, tough<br />

week, when you’ve had a little too much<br />

chardonnay <strong>and</strong> you start thinking about<br />

using Aunt Martha’s cookie recipe to open a<br />

bakery in the back of the shop... don’t go there!<br />

Instead, pursue the most likely path to success,<br />

by advancing forward in the profession you<br />

know so well.<br />

What if you were challenged to generate<br />

extra profit for your salon? How would you<br />

begin? Your first instinct may be to consider<br />

the usual suspects. By that, I mean ideas such<br />

as raising your prices, working longer hours,<br />

hiring additional staff or adding a new service.<br />

Each idea has its merits, but they all have definite<br />

limitations <strong>and</strong> are not likely to generate a<br />

big return for the average salon.<br />

Keep in mind that anything you must<br />

do yourself is inherently limited by the time<br />

required for you to perform the service. If you<br />

incur more payroll by hiring it done, then it<br />

will return only a small net profit, if any profit<br />

at all. What you really desire is not just extra<br />

income, but extra profit. You want to keep<br />

some of that money for yourself, right?<br />

Let’s look more closely at the idea of<br />

adding a new service. It’s true that some<br />

services are more profitable than others, <strong>and</strong><br />

our instinct may be to stop doing one thing<br />

to do another. You might think, “If I do more<br />

chemical services <strong>and</strong> fewer haircuts, or if I do<br />

some high-end service, such as hair extensions,<br />

I can generate more income.”<br />

This may raise your income slightly, but<br />

you are still just exchanging one service for<br />

another <strong>and</strong> possibly increasing the supply cost<br />

per service at the same time. You are on the<br />

right track, but not quite there.<br />

To find the answer to producing added<br />

profit, let’s approach this challenge from a<br />

different direction. Ask your self this question,<br />

what features would a new service need to<br />

have in order to measure up?<br />

To make significant extra income with<br />

a high level of profit, here are the features a<br />

service should have.<br />

• a service that produces income while you<br />

do something else.<br />

• a service that doesn’t require more staffing<br />

or employees.<br />

• a service that has a large potential market.<br />

• a service that does not consume expensive<br />

supplies.<br />

• a service that produces significant fees,<br />

while still affordable to clients.<br />

• a service that doesn’t require new skills,<br />

h<strong>and</strong>s on training, or a special license.<br />

• a service that is easy to incorporate into<br />

your existing salon without construction,<br />

wiring or plumbing.<br />

To do all these things, we may need a<br />

service that has never been offered before in<br />

salons. In fact, we need to create a whole new<br />

service category. While it may seem unlikely,<br />

that any one service could incorporate all those<br />

features, such a service does exist, it’s called<br />

“Laser Hair Enhancement.”<br />

The laser hair enhancement service fits<br />

perfectly in a salon setting. No one knows<br />

more about hair than the salon professional.<br />

You are the person they will turn to when they<br />

have concerns about thinning hair <strong>and</strong> for<br />

the first time you will have a solution for the<br />

problem. It’s not complicated. Some foundation<br />

knowledge is necessary to provide a good<br />

client consultation. This training is provided<br />

with the laser equipment.<br />

How big is the market for a service that<br />

provides a solution for clients with thinning<br />

hair? The desire for thicker hair is universal;<br />

it transcends every age, sex <strong>and</strong> race. It is estimated<br />

that 70 to 80 million men <strong>and</strong> women<br />

in the United States suffer from a significant<br />

amount of hair loss today.<br />

Laser hair enhancement has a huge potential<br />

market, uses no supplies <strong>and</strong> only takes a<br />

minute of your time to provide the service.<br />

The equipment requires no installation <strong>and</strong> is<br />

as easy to use as a hair dryer. The new service<br />

can produce significant additional income with<br />

just a few clients in your program.<br />

If you are serious about wanting to create<br />

more income for yourself, you may need to<br />

move out of your comfort zone <strong>and</strong> explore<br />

new options <strong>and</strong> opportunities. Laser hair<br />

enhancement is the first truly new service<br />

offered to our profession in a very long time.<br />

There has never been a better time to add laser<br />

hair enhancement to your salon <strong>and</strong> begin to<br />

reap the profits.<br />

Craig Black is president of <strong>Salon</strong> Lasers, Inc. a distributor for Hair Enhancement<br />

Laser equipment. For more information on this subject, visit his company<br />

website www.<strong>Salon</strong>Lasers.com, or call 866-646-9050.<br />

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12 | AUGUST 2<strong>009</strong> | CALIFORNIA STYLIST & SALON

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