5 Actions a Salon Owner Must Take to Stay Profitable and Competitive
Five actions you must take to stay profitable and competitive:
- Review and increase your prices NOW. Every salon owner has seen a drop in profits since April when National Minimum Wage rates changed with wages being the largest cost to a salon. If your wages are regularly the wrong side of 50% of your net sales, then you are in a vulnerable position!
- Increase stylists’ targets. A target must be based on prices, hours worked and time allowed for each service.
- Monitor salon Key Performance drivers: you must know how your sales are being generated - % of clients having colour, retail, treatments, rebooking etc.
- Ruthlessly manage your new client numbers. Every salon loses clients every month. You need 10% new clients to ‘stand-still’, 15% for modest growth and 20% for good growth.
- Engage regularly with your staff. An individual performance review meeting using a structured process increases motivation, engagement and retention.
At mysalonmanager we have years of experience working with many salon owners around the country helping to massively drive performance and profits. Get in touch now for a FREE one-hour telephone consultation about how we can help.
Click here to download this article!