Recession Tip 1: Making More From Less

With the recession upon us, businesses need to work smarter to keep their businesses growing. Over the next few weeks we will look at some of the strategies that beauty salons and day spas can employ to ensure that business is moving in the right direction during these tough economic times.

One of the realities of a recession is that people are watching their money more closely. People will often go without those products or services that are deemed to be a luxury, rather than a necessity. Beauty treatments are commonly one of the first things that people give up during times of financial hardship.

But the reality for most salons is that they still have customers, just less of them. The regulars tend to keep coming in, but you tend to lose ‘walk in’ traffic and those who would be typically classed as infrequent clientele. The loss of these clients is significant, as these are often the clients who give your profits a real boost and turn your good weeks into great ones.

But all is not lost; you simply need to work on making more from less.

To do this you need to start focusing on the average expenditure of each client, as well as the frequency of their visits. Are there any products or services that you could be selling your clients that you are not selling to them already? Obviously spray tanning is a big one, as a SunFX spray tan is hugely profitable for your salon, and highly desirable for your clients.

Products are another lucrative area that many salons have not previously focused on. Sure you have always sold products, but how many more could you sell if you really focused on them? By selling an extra product to every second client, you will soon have boosted your profits even though you might potentially be dealing with fewer clients.

It is also important to ensure that your existing clients are coming back regularly, particularly if your overall numbers of clients are diminishing. Make sure that you book people in for their next appointment before they leave, and it’s imperative that you give them a reminder phone call a day or so before their next appointment is due. It’s also worth considering putting individual clients on customised beauty programs. Find out if they have any important functions or engagements coming up and then set out a program of regular appointments leading up to the event that ensures they will be looking their best.

Whilst finances may be tight across the country, there is no doubt that well run businesses can still succeed, and in fact grow. Focus on increasing the per visit expenditure of each client, along with the frequency of their visits, and you will find that you can grow your profits even if your client base is diminishing.