November - Stylist and Salon Newspapers

Make Serious Money in Your SalonBy Gordon MillerWhen it comes to making serious moneyin the salon, it is necessary to address two keyconcepts:1. A pricing strategy that includes regularlyscheduled price adjustments to reflectmarket issues and inflation.2. An incremental sales strategy focusedon building additional revenue on top of yourbase service offerings.There are certainly other issues toconsider when you’re building a successfulbusiness geared to last for the long haul.Such things as hiring and firing practices,commission structure, inventory control andemployee benefits are a few examples. But ifyour books are not yet full, those two issuescan make a huge difference in your long-termsuccess.Price increases remain one of theindustry’s most profound weaknesses. Withinflation picking up, client dollars are worthless today then they were last month—letalone last year—which means you must bringin more to just stay even.A great example is the cost of backbarproducts, such as color. In the last year, salonshave seen costs soar in this area, as the coststo manufacture and ship product have goneup for producers. Therefore, you must have astrategy to pass on rising costs to your clients,who benefit from the use of these ever moreexpensive products.At the heart of this strategy is the simpleidea that you must increase prices on aregular basis simply to stay even in an everchangingeconomy. Add to that the idea thatexperience counts, meaning as your skillsincrease, so should your value. Of course,to make that argument you must make sureyour skills are growing from year to year bystaying educated. Then, let your clients knowabout your efforts to hone your skills andknowledge; that way it’s easier for them toperceive your enhanced value.Commit to raising prices on your servicesa minimum of five percent per year, moreif you’re great at what you do, and lockin a plan. It is important to note that youshould not make it a big deal to clients. Donot make major announcements regardingprice increases; after all, can you think ofanother business that does? Be prudent, besensitive to your competitive position in themarketplace, look at your ratio of requests towalk-ins (more requests means client loyalty,which translates into a more secure clientbook) and be confident in your approach toadjusting prices to remain competitive andviable as a business.“Incremental sales” is one of the mostpowerful considerations when lookingat your profitability. The point is to findmore revenue from every client by addingadditional services and by selling plenty ofretail. The first step is to have something tooffer—add-on services and a well-stocked yetfocused retail offering. The second step is toactually ask for the sale.Whether it is you, your receptionist or ashampoo technician, you need to be lookingfor that add-on sale and then complete thatsale. If you feel you are not a salesperson, hirea receptionist who is; then provide incentivesfor that person to get the job done for you.Remember that retail rules when itcomes to added sales per client. Great salonretailers are often paying for their employeebenefits—which can create low to no staffturnover in these salons—and often also theirrent with their profits from retail.In the meantime, remember the two keyconcepts of scheduled price adjustments androbust sales strategies, and you’ll be on theroad to making serious money at your salon.Gordon Miller is the Executive Director for the National CosmetologyAssociation, the largest organization of salon professionals in the world. Itsmission, since its inception in 1921, has been and continues to be to ensurethat working salon professionals have the tools and resources availableto create career success with integrity. For more information, visit www.ncacares.org or call Membership Services at 312-527-6765.National Cosmetology Association Salon Life ‘09For more information about how to make serious money at your salon, visit the thirdannual National Cosmetology Association SalonLife August 1-3, 2009 in Chicago. The focuswill be “the big ideas that drive success,” and you’ll hear the likes of Robert Cromeans,Chris and Sonya Dove, Gino Stampora and others extol the virtues and share their strategiesfor building success through effective sales and pricing strategies. Add to that the keynotepresenter—personal financial guru Suze Orman—and you have a program that will delivera unique and valuable experience for every attendee.SalonLife 09 offers a new level of meaningful programs to ensure that attendees receivemaximum benefits including an exhibit hall witha focus on networking and learning inan upscale, professional, noise free show floor and the SalonLife Theater which offers anunparalleled lineup of expert speakers in an inspiring environment presenting big ideas onhow to grow your business and your bank account.For updates, visit salon-life.org.L egendA estheticDistribution & EducationBody SugaringEasy, Gentle and All NaturalAlternative to Waxing.Sugar of the Nile produces a paste made from allnatural ingredients, including real sugar, honeyand lemon juice, which provides mild andeffective hair removal.In fact, it’s so natural, you can even eat it!2-Day Certification Class - Auburn, WAththDecember 15 & 16 2008 - $225Spaces fill quickly. Reserve your spot early.253-569-3336www.legendtrainingcenter.comBLACK MONDAY BEFORE THANKSGIVINGSALE!ONEDAYONLY!November 24, 2008 | 9:00am - 4:00pm50 %SomeItemsOverPortlandDemo Day• Holiday Hair UpDo’s• Hair Extensions• Hair Color DemosMeet Dana TaguePacific NorthwestEight Time GoldMedalist showingHow to doHolidayHair UpdosOFFwww.SoCapNW.comOregon & Washington Regional Officeand FREE Demo Day!Best Western Pony Soldier Inn - Airport9901 NE Sandy BlvdPortland, OR 97220-3323(503) 256-15045 Tubes of Color20 Vol Developer$10.00HerStyler Flat Iron$50.00Save$19.95Reg.$2 00.00to find out more information on when you can be certified go to www.SoCapNW.comor call 888-262-7020 • 509-465-4795®Special Pricingon CertificationAvailable atthis One Day Event!ErgoHot RazorsandStyling MatsSaveBig !!HerStyler Curl Iron$50.00Reg.$17 5.00Don’t Miss this One Day Event!All Nutrient is available in Oregon through Dayspring Beauty Supply360-574-9910 (office) • 503-283-4905 (salon)NORTHWEST STYLIST & SALON | NOVEMBER 2008 | 11