Improving Profitability Within Your Salon Business

Salons Direct, stockists of professional salon supplies, discuss the most effective strategic approaches including client growth and reducing overheads to help you to increase profitability within your salon business.


Improving Profitability Within Your Salon Business

As a salon owner, we know you are keen to understand the tangible methods and approaches that will increase profitability within your salon business.

There are three main ways to raise profits which can all be executed effectively with the right training of your staff and a strategic plan. Start by honestly assessing all aspects of cost within your business, examining outlets where budgeting could be tighter.

Ask yourself how much your overall salon costs to run? Make a note of all outgoings such as wages, bills, stock and rent. This will help you to clearly see your overheads and realign your profit goals.


Increasing clients’ average spend…

When clients visit your salon they will be paying for a dedicated service which must be delivered. However, you can also take advantage of the opportunity to upsell to these customers, whether that’s with add-on treatments or by recommended products – be sure to train your staff effectively to avoid being pushy with sales or you may deter customers and lose their business.

With effective and proper training, your staff also hold the key to upsells. Picture your client’s journey around your business, which staff members they’ll interact with and how those staff members can sell if it is appropriate to do so. For example, if your client is receiving a deep conditioning treatment, the staff member carrying out the service can encourage the client to buy the products used to maintain the results.


Retail products…

You can also boost profits by effectively merchandising stock in areas of high footfall such as your reception area, as well as dedicated focal points around your salon. We recommend merchandising miniature items such as hair spray or makeup compacts through a point of purchase area on your reception desk. Last minute items are likely to encourage clients to spend more, especially if they have received a memorable and pleasant experience.

Related: Salons Direct guide to boosting salon retail sales


Reduce salon overheads…

It may well be that you are haemorrhaging money and not even realising through ineffective procedures or unmotivated staff who are not regularly achieving targets.

Other overheads include wastage, such as an inefficient inventories and improper stock checks which can result in unnecessarily over ordering or not being able to account for certain items.

Lazy maintenance of frequently used equipment such as chairs and treatment beds can result in the need for regular replacement… all at a cost. By keeping a handle on overheads, tightening up procedures and keeping on top of your outgoings, you are more likely to raise your profit margin with very little effort required.


Continually grow your client base…

In order to maximise profits, it is important to continually grow your client base. After all, these are the people who will be spending money with your business and ultimately pay your wages.

Extending your client base can be done in a number of ways, including special offers for new clients and one-off seasonal promotions. Word of mouth recommendations are particularly important in the hair and beauty service industry. Therefore, you must ensure that you have the basics right by making your salon welcoming, good value for money and memorable for a high standard of customer service.

Related: Retaining Your Salon Clients


You can also grow your client base by using a salon management system, such as Premier Software. By having all of your clients’ details stored accurately in one place, you are able to target customers who are not regular attendees as well as capturing the data of walk-ins or people purchasing retail items. You never know, this may be the ideal opportunity to attract the individual back to your salon for a service.


Found this useful? What are your recommendations for improving profitability within your salon business?