Back2myroots : A place to share thoughts and grow idea’s. B2MR
Salon Discounting is it good for business?
Does it pay?
How much discounting goes on in your salon? Have you ever considered what this might be costing you and your business? Be honest! The answers is a lot!
How this happens.
How does this discount come about. Stylist like to reward their clients make them feel special,but at who’s expense?. This happens all to often in fact i have been guilty of it when work in a salon it’s such a easy trap to fall into.
A regular client comes in for a full head of foils. You like and enjoy time spent with this client. maybe she tips well? When the service if done and it’s time to pay you say ‘I have just charged you for a half head today’ Da! Why. She came to get her hair done. She expected great service. She expected a great job. Did you short change her with the foils? Did you rush her through? Then why give the discount, are you not worth your fee? Where do you draw the line?
Another great one is a client is have a tuff time money is tight, [well it is for us all] but you feel sorry for her. After the service you say i’ve take £10.00 or $10.00 off your bill today hope things get better for you. A great gesture but what ever she is going through she chose to get her hair done she knew the cost.
Who’s money are you giving away by no charing the full amount? The salon’s yes certainly and your own as your commission will be less.
In both the above cases you are putting out messages . One price is subject to change if we or I so chose.
I know we over charge or are slightly expensive but i can be flexible!!! NO NO NO
What we need to see at the end of the day good days work good days takings! It’s not me not being caring or understanding it’s business it’s drawing a line.If your a member of staff paid on commission your short changing your self and the salon. If your an owner what do you think this might be costing you weekly or monthly?
Making clients feel special is what we should be doing every day every visit. Doing an exceptional job each and every time. We are in the business of service we offer skill and expertise. We you don’t need to cheapen you self with discounts.
Consider both as management and indeed a staff team if you did not discount and put all the money aside, what could it be used for? In house training, going to an education event or seminar, new pice of equipment. Things that both you as owners or stylists team members can and will benefit from.
These newly learned skills or new equipment will in the end add to your skill level and improve the service you offer. Ultimately the client benefits.
Hard nut to crack!
This is a hard nut to crack in any salon. For owners when you have a staff meeting it may not go down very well. You might be thought of as being mean penny pinching. Stylist’s you have to think about the business side of this if it were your salon would you want hundreds of pounds or dollars a month just not coming into the business?
To end this starts with a group meeting draw aline no more as of now! If you have a receptionist then she will be key to stopping this. If not then careful monitoring of the day book the services being done and fee;s charged will be required, a little re education. You will notice a difference over avery short time it adds up!! Consider this when an existing client recommends you to a friend or work mate do you want to be recommended for.
A. the great service and job done!
B. the great discount that the friend will now expect?
Discounting is money floating away!
1. Discounting .
This is taking off either a pound or dollar value or a percentage of the clients service bill total. This is relatively easy to find and stop from happening.
Often occurs when discounting is trying to be covered up. It can happen as full head of foils charged as half head or T section, Cut blow dry charged as wet cut, it goes on not always easy to find, not always easy to stop
This is a really odd kind form of discounting because in this instance you discriminate against your good clients that pay you full price for their services and they visit regularly. While other clients that only have some of the salons services and visit irregularly are discounted every single visit. You know the students, the senior citizens, the children and so on. You have a consistent policy across the board.
4 A Welcome or incentive discount.
Another one that I see a great deal of. Special opening offer 30% off any one service on first visit. What does this say? We are expensive.We over charge, but come in a for a one off cheap job!!! your new your exciting your professional your offering something new and exciting why cheapen this with an opening discount!!!
Front of service friendly, efficient, professional, receptionist!
When you discount or undercharge where do you think this money come from?
It doesn‟t come from the money you would have paid for the salon rent, it doesn‟t come from the money you pay for your professional products and it certainly doesn‟t come off the wages you pay your team.
The discounted money comes out of your profit. That‟s the only place it can come from. And the profit is essentially what you‟re in business for, isn‟t it? The discount that‟s given to your clients is taken from the money needed to grow your. If you feel that you need to appeal to all markets and so wallets then this is why or when you have a structure of fee’s based on experience.
An example of this that works well would be.
A newly qualified stylist might get all the students Why? Well one newly qualified the charges might be more affordable to a student, students have friends , students will not always be students. The goal being build up trust respect grow together as one gains more experience the fee’s go up as the student becomes qualified she they can afford a little more.win win no discount!
Make you staff aware that when discounting they are not only reducing their fee so their commission but they are giving away your profits. The profit you need to grow and support your business.
I have started working with Karen and David and their team at salon success. It’s a relationship we have been building for well over a year now one built on mutual respect and trust. The support material they have and offer is first class and comes from. Salon knowledge and professional experience gained from years in our industry.
For me life is a journey one of learning and growing an adventure. To fully understand the ‘Salon success’ Philosophy and program. I have for the last three weeks embarked on being a member of the online line business support and mentoring program.
This has involved committing to actively using both reading material, listening to the audio support material. All supplied and doing the suggested exercises eye opening even to me a seasoned professional. it’s easy to read and listen to but guess what. Like every thing the work has to be done to succeed so it’s a challenge. Worth while yes it has been. It motivated me to write this !!!
This is what has inspired me to talk about Salon success and the KarenDavid support program.
for more information go to.
karen david .com
Much of what i write and indeed what Karen and David at salon success talk about is common sense and yet it so easily gets lots or forgotten about.We all need little reminders from time to time some of my suggestions might sound harsh even uncaring not the case.
I love this profession and industry and indeed respect greatly all the clients i have worked with over the years some who still remain friends however much distance is between us. That respect is built on me offering sound honest advise caring and charging a fair price for my time and skill.
If it’s built on being cheap affordable or discounted then it will fail as a relationship.
Past business how it worked without discounting ! value quality skill service!
I used to work doing education on the road a great deal but i also had for down time a home based salon it was a great business specialising in colour and colour correction. I charged an hourly rate occasionally a new recommended client would book for an a consultation prior to booking an appointment. this was how i worked.
Moving on hourly rate and not having the huge running cost of a traditional salon made what i did great value for client kept me fully booked weeks in advance.
However if a client ever said i was recommended to you by ****** she said you great really know your stuff and your sound so much cheaper than the salons in town!! Hum I would say really thank you for coming but this is not going to work for me! If your only hear because it sounds cheap then i’m not the guy for you!! I built up a business and a reputation of on not being cheap! it works it really works.