While having a talented staff is a must-have for the success of a hair salon or day spa, there’s a lot more in the secret sauce to success. Having the right operations in place will impact the profits of a hair salon. Hair salons need to be in operation during specific hours in order to accommodate the maximum number of clients. Like other retail and service business, a hair salon and day spa needs to be open at least from 10 am to 6 pm seven days a week. And to accommodate special needs like weddings, opening hours would need to be earlier.
Often, new salon owners try to do everything themselves, including managing the books and working from behind the chair. Unfortunately, this strategy decreases the owner’s money-making ability. Instead of trying to wear all hats, salon owners should hire skilled staff to handle the day-to-day tasks. The secret is to delegate these types of responsibilities so that you can focus on the tasks that actually grow business and draw in more profits, such as networking, marketing and planning special events.
Setting prices is an important ingredient for success. If the prices are too high, the amount of customers who can afford to visit your business may be limited. On the flip side, setting prices too low can limit profit potential and even put the business at financial risk. Setting prices takes more than checking out the prices of other salons in your local market and setting your own prices competitively. Three important factors need to be considered when setting prices. These factors include labor and supplies, overhead and profit.
Determining the labor costs includes the salary and benefits for stylists, staff and administrative employees. Overhead costs include all the costs required for operations other than labor. Examples are lease payments and utility costs. A good range is overhead that is 40 percent of the labor and materials costs. Net profit should be set at a minimum of 11 percent.
By adding retail products and gift certificates, hair salons can make profits grow. Educate employees on how to sell the retail products to customers and display them attractively on shelves in the reception area. Sell a wide variety of products to appeal to the greatest amount of customers. Corral more cash with gift certificate sales. These are typically priced for a 10 percent profit, and it adds up. Use gift certificates during gift-giving seasons, like Christmas time, Mother’s Day and Valentine’s Day.
Keeping the hair salon fresh and clean will maintain a good image of the salon. A hair salon should be inviting at all times. The cost of hiring a maintenance crew can be too much for some salon owners, but assigning daily maintenance task to employees is a smart alternative. Assign jobs like folding the laundry, sweeping and dusting to employees. Just set the rule that everyone is expected to pitch in.
Get all your ducks in a row with these tips, and share your own secrets to a successful salon with us on Twitter and Facebook.