If you want your salon to be a big success, you always need to find new ways how to increase salon revenue. Fortunately, there are plenty of ways to grow your salon business and raise more money each month. From setting up the right salon software to upselling to your existing clients.
Revenue is important to any kind of business, including a salon. It shows how much money your salon business is bringing in each year, and every salon needs sufficient revenue in order to generate a profit.
In the early days of opening a new salon, you might not necessarily make a profit immediately, but revenue can show how likely your salon business is to grow and profit in the future. Later on, you want to build your revenue as much as possible with new clients and more sales to grow your profits.
Whether you're first starting out or just looking for ways to grow your existing brand, you might wonder how to manage a salon business effectively or how to increase salon sales.
Well, the first key to success is to set yourself some goals and start taking action to hit those goals. Take a look at your average hair salon revenue and consider how high you want to try and push those numbers in the future.
Then, make use of new technology like salon management software, as well as proven salon business techniques like upselling and asking for client feedback to grow your brand.
Also, try to avoid the mistake of devaluing your business by simply discounting the costs of products or services. This may lead to short-term gains in clientele, but it won't usually lead to long-term growth.
Below, you'll find 11 tips and tricks for how to make your salon business grow and hit your revenue goals.
One of the best ways to get ahead when it comes to improving your hair salon revenue model is to raise the monthly frequency of clients you get in the salon.
Naturally, if you have more customers and clients wanting to purchase your professional products and services, your revenue levels will start to rise organically.
So, how to make your salon more profitable with greater numbers of clients? Well, a good way to start is to refine your branding and make sure your salon's online marketing is on point. Everything from your salon's retail logo to your salon website needs to be designed with care.
Maximizing visibility by making accounts on online social media platforms is another useful method, and it's worth setting up a mobile online booking system or app to make it easier for people to make appointments at the hair salon.
Not only do you want to bring more clients into your salon business to make it successful, but you also want to ensure that those customers become loyal, coming back again and again in the future.
As a professional salon owner, loyal customers can be your best friends, and there are plenty of ways to boost customer loyalty. For instance, you can offer loyalty programs, referrals, cards, or retail discounts after a set number of visits.
Lots of salons have made money with these marketing methods, and you can scour the market for many real-world examples of this. Never forget that marketing is the key to all kinds of businesses, including salons. It’s something you have to focus on and subscribe to with maximum effort if you want it to pay off.
You can also set up or subscribe to good-quality hair software to keep track of customer appointments and issue reminders and alerts for loyal clients to let them know when their next salon treatment is due.
Another good way to grow your salon business is to boost the rate at which each client visits your salon. If a client comes back every two weeks, rather than once monthly, they’ll be giving you twice as much business.
How can you do this? Well, again, there are a few methods. One option is to focus on improving your variety of services and treatments. This way, no matter what people need, they’ll think of your salon first.
You can also consider offering some sort of discount program or benefit for clients who come to the hair salon on a regular basis, as well as making sure that the salon itself is an attractive, comfortable space for all, always looking for ways to improve the space.
Your most loyal clients can provide salon owners with the best value and the biggest impact on your revenue. They're already interested and trusting of your salon business, so they'll usually be much more receptive to upselling.
Upselling is where you and your staff sell extra services or promote upgrades to customers, encouraging them to purchase a little extra each time they visit.
Obviously, these need to be handled with care, and you shouldn't pressure clients to make them pay for things they don't want.
But if you can understand this technique and sell it correctly, your most loyal customers will help you grow your hair salon business and raise salon revenue enormously.
With the right approach, you can encourage people to pay more on average whenever they visit, leading to more products and services sold, better market performance, and better value for your business from every appointment you have.
The more services and products you have to offer, the more reasons new clients and existing clients will have to visit your business and invest in it. So it’s wise to look at your current service selection and think of ways to improve and expand it.
If you’re running a traditional hair salon, you might want to bring in a coloring specialist to offer premium coloring services, for instance. Other salon owners might consider hiring a masseuse or dietician to expand their service range or simply start selling some other products in store.
Another good method for salon owners to consider is to actually listen to your clients and see what they want and desire from your salon in the future.
Your existing clients can be a great source of information. They might tell you how they’d come more often if it was easier to book an appointment online, for example, or that they’d spend more time at the salon if the waiting area had some extra facilities.
You might want to set up a feedback post or page on your website too. Feedback posts tend to be really effective in the retail and service industries. A feedback post or page will give people a chance to share their thoughts on your service.
Check your current price list too and see if there are any areas where you can make some changes. Your price list can be an invaluable resource for improving your salon.
You might want to offer a discount on the cost of a line of products or services to keep up with market trends, or up the cost of other services to offset your expenses and make your salon business more successful in line with other salons in your area.
It’s wise to compare your salon’s prices with other salons and competitor brands in the area. You might find that you’re overcharging for a certain service or not charging enough for another service, and this could be affecting your expenses, money, costs, and profit levels in different ways.
If you want to take your salon business to the next level and really raise revenue and profit levels, you may want to consider scaling up.
This involves expanding your operations to offer more services or even additional locations to cater to your customers’ needs.
You could start offering a mobile styling service, for example, where you can provide hair treatments and other services to customers at locations of their needs, or you might be ready to create a second location of your salon to start a chain.
Another good way to grow your business as a salon owner is to find a niche that can help to separate your salon from the rest.
Perhaps you will decide to go the eco-friendly route and only make use of cruelty-free, natural hair care products, for instance, or maybe you’ll try and turn your salon into a cozy space with a mini cafe where people can come to relax in between appointments.
You could even get really creative and offer some free books, free magazines, and other free reading materials to make your salon more of a space where people feel free to step in, read, and relax before getting their hair cut or styled.
Either way, finding and providing a niche can really draw in the customer crowds and improve loyalty for your salon.
As well as looking after your customers and thinking about price lists and social media marketing posts, you also need to consider the well-being of your team of staff and stylists.
Staff members at the salon should be treated as friends, with care and consideration. Because ultimately, their hard work is what will help to make your business grow and create better revenue for you.
Make sure your team of stylists has all they need and be ready to talk and listen to feedback and make changes to help them out. They might like more flexible hours at times, for example, or additional breaks on busy days.
As well as looking after your management staff and stylist team, take a look at setting them goals and targets to aim for over the course of each week, month, or even year.
Studies show that people tend to work better and more efficiently when they have something to aim for. So if you create some goals for your friends and colleagues, they’ll feel more encouraged and motivated to push towards them.
If you’ve been wondering how to increase salon revenue, we hope that these tips, tricks, and proven techniques will help you out.
Boosting clientele is a great way to get started, as more people wanting to visit will lead to higher sales numbers and bigger profits. Raising retention is also key as if you can build up a loyal set of customers; they'll come back time and time again to enjoy your salon’s service.
Investing in salon software and other types of technology like automated appointment reminders and online booking systems can also help and it’s worth building up your salon website too, along with your social media presence.
As this guide shows, there are many additional methods out there, so give them a try to see what works best for your salon business.
And if you love these ideas or have some other ideas that you’ve used in the past to promote your salon business, why not share them with the Belliata community in the comment section below. We would also be delighted to answer your questions, as well.
Can Salon Make It? https://go.gale.com/ps/i.do?id=GALE%7CA71962143&sid
Revenue management: Resolving potential customer conflicts https://link.springer.com/article/10.1057/palgrave.rpm.5170068
How Contribution Margin Analysis Helped Andre's Salon https://search.proquest.com/openview