Archive for the Traffic & Revenue Category

Your Kid’s Need a Good Lice Shampoo?

Posted on October 27, 2009 with No Comments

Whether you’re a salon owner or a concerned parent, you should give So Cozy Boo! Shampoo (lice shampoo for children) a careful consideration.  Not just because it has been shown successful as a natural-based lice repellant, but because it’s FUN!

Boo! Shampoo

Boo! Shampoo

Good for Kids

Yepper, that’s what I said…FUN!  Between its creative name, catchy slogan,  purple label and “spooky” font-style, it and its companion, Boo! Conditioner, are fun for everyone – kids, parents, and salon owners (because you’ll probably be selling them and getting rid of nasty critters at the same time!)

Boo! Lice shampoo is paraben-free and is not formulated with either of the Laure(th,l) sulfates, so it is gentle on the scalp and for younger kids hair.  Tea Tree oil keeps away the bugs, and it smells great!  Best of all, kids get excited about it – that’s almost enough to make parents happy.

Good for Parents

Both Boo! products are made by So Cozy and who also have a chain of kids/children hair salons.  Though I can only speculate, I’m sure the saw a problem and addressed it.  Cool label, image, and colors…just what the doctor ordered when trying to keep away bugs – when can be a not-so pleasant discussion.

In addition to the “cool” look and verbiage (We make hair care Fun!), they use a very creative twist to approach the issue of lice – which most folks envision crawling around on their kids pillows at home likening it to infection, the flu or a plague – they refer to it as a “camp and school formula”.

This little marketing trick, whether intentional or not, moves you away from the “not in my house” panic to “oh…ha, ha, ha…he must have gotten them at school or while he was camping…no big deal, we’ll just use this shampoo”.  Its a great technique used by pest exterminators and plumbers.  Take an icky subject and make it fun…somehow!

So, from a parent perspective there are several reasons why you might want this in the shower or next to the bath:

  • It repels lice, ticks, and various bugs
  • Its got a fun logo, slogan and mission which kids like
  • Colors are fun
  • It might entice your children to shower or bathe more often
  • Its a natural-based, safe shampoo

If you’re a salon owner, there’s several benefits for you as well:

  • You add a unique product to your line
  • You liven-up what could be an over-serious discussion about bugs in kid’s hair
  • It diversifies products into “natural” or “organic-based” category with no sulfates or parabens
  • You can help build customer loyalty
  • Increase salon revenues

If you’re looking for a funproduct to get for your kids or a new line to add to your salon, take a look at Boo! Lice Shampoo and Boo! Spray-On Lice Conditioner – both are excellent repellants, smell good, and are safe for even the most sensitive scalps.

Boost Hair Growth with Follicle Boosters

Posted on October 14, 2009 with No Comments

Many of the folks I know in the salon and barber business tell me many of their customers – women and men – suffer from sort of hair loss or thinning, especially as their customers reach 40-50 years old.  While its certainly more accepted for men, thinning hair on women is embarassing for many.  The key here is…helping our customers with hair loss problems can help drive more revenue and sales.

Follicle Boosters

Follicle Boosters

When discussing methods for increasing revenue and traffic into salons, several recommendations came up that salon owners and stylists should take a more active role helping their customers other than the traditional “well, you should try this shampoo” tactic.  And while the objective is not to become a hair transplant or hair replacement specialist (or proponent, in fact), there are several things we can do, recommendations we can make,  and products we can sell that will be a win-win for everyone. 

First, understand your customers needs.  Most men are indifferent to hair loss unless they are younger and are experiencing rapid hair loss or traditional alopecia male pattern balding.  So, offering a shampoo for thinning that smells good and works well with their hair type might be a good suggestion.

For women however, finding more of a solution might be best.  Women’s hair loss is often the result of hormones, dirt, oil accumulation, chemical treatments, poor circulation, et al.  Recommending a topical application or a scalp cleanser might be most appropriate – especially if they are specifically formulated with active ingredients such as Minoxidil or Trichogen.

Second, understand what products might be helpful.  Biojen® and Nioxin® are two of the most popular products for thinning hair and for har loss.  There are also several alternatives.  Nourish® makes a shampoo/conditioner combo called Awaken  & Replenish® that works very well and gets high reviews.  Also ProFolla® makes some topical applications that work and that are designed for use on men and women alike – a follicle booster and hair a growth stimulant. 

All of these products are designed to boost hair growth and can be an easy way for you to increase revenue in your salon or shop.  And, they all can be purchased at wholesale from manufacturers or distributors.  Call 888-909-1658 if you want to get more information.  The trick to helping cuatomers with hair loss is to understand what the problem is and formulate a solution – and if additional or new product purchases are included in the solution, then good for you.  Either way its a win-win situation.

Selling Discount Salon Products to Increase Salon and Barber Sales

Posted on September 28, 2009 with No Comments

In our continuing quest to increase sales and traffic in salons and barber shops, consider selling major brand salon products at a discount – it has worked for Wal-Mart and other major retailers, it might just work for you!

Many salons and barber shops I have visited generally carry one to three major brands they keep on the shelf.  If promoted by the stylists or owner, you might get a few sales.  Unfortunately, this is often NOT the case and product sits on the shelf moving very slowly.  If this sounds like it might be the situation for you, then consider an alternative – deeply discounting well-known shampoos and conditioners to attract more customers and increase sales.

Many small and even multi-unit shops believe products should be marked-up to give them the highest margin.  For high-demand products or if your shop has high traffic, this very well may be the strategy you might follow.  However, as with many types of products, there is an “elasticity” to the price and volume associated with most products.

“Elasticity”, or more commonly referred to as “price elasticity”, refers to the sensitivity the product’s price has on its sales volume.  For the highest demand products, the price can be raised quite high before demand drops.  For most products, however, discounting the price leads to increased sales – to the point where discounting no longer shows an acceptable profit.  The trick is finding the perfect balance – and that balance varies depending on the product’s demand and exclusivity (can they find it somewhere else?)

Many salons sell brand products at a 100% mark-up or a 50% gross margin.  This is typical is the similar mark-up the distributor might get from the manufacturer.  For instance, a distributor may get Kenra shampoo from the manufacturer for $4.00.  They in turn sell to the salon for $8.00.  The salon in turn sells to their customers for $16.00.  Pretty stardard fare.

But, what good does a good, high or reasonable mark-up get you if you don’t sell anything?

Therein lies the the justification for selling discount salon products.  If you discount a $16.00 shampoo 25% (selling price of $12.00), you still get a reasonable gross margin (GM), but you might triple your sales –  puttting you ahead on cash and profit.  Also, if a customer likes the product they bought AND the price is good, they will likely return for more purchases – giving you an annuity-like revenue you didn’t have before.

While this sounds good on the surface,  you must promote the products.  Signage, ads, recommendations by stylists, etc can “get the word out” improving traffic.  Next time we will talk mores specifically about how to promote your discounted products.

Add a Free Facial to Increase Salon Sales

Posted on September 21, 2009 with No Comments

A good friend of mine owns one of the largest hair salons in north Georgia.  Owned and run by he and his wife, they have experienced a measurable drop in volume and sales in the past 18 months.

Theirs is a full service salon offering color, perms, straightening, and serve both women and men.  In the past, they also offered facials along with foot care and fingernail work.  The first thing they noticed was business dropping in these ancillary services – primarily because they were not considered necessities per customer feedback.

Regardless, during “good” economic times, these services sold well and were considered by many a very relaxing way to complete a salon experience – not necessarily competing with a spa or day spa, but a nice supplement to services and a very nice add-on for additional revenue.

Something you might consider to increase salon revenue, is to offer a promotion of a free facial periodically.  While this may not be a tactic you want to offer daily, picking a day or two a month might be a big draw to bring in some very tired customers looking for a renewal.

The cost can be minimal relative to a big boost in sales.  Setting up a station toward the back of the store may be as easy as putting up a few screens and there should be plenty of massage experts who would be willing to work a dy or two a month for some additional exposure.

If you have an outdoor display, post the promotion or foot the bill for a $50-$100 banner that you can display.  For those salons who have tried this, promotions have ranged from “free” to “free with a perm or styling”.  Again this may not be an answer to an overall increase in permanent traffic, it’s a service that will probably bring in new customers and boost loyalty of your current customer base.

Walk-ins Welcome? Is this a good Strategy?

Posted on September 11, 2009 with No Comments

For small, large, and boutique salons, it is rare to not see a sign that says “Walk-ins Welcome”.  But is this a good tactic for increasing and traffic and revenue?  Let’s take a couple of minutes to discuss.

Walk ins Welcomeprovides an opportunity for the salon owner or manager to communicate to the world that you don’t need an appointment.  While this certainly doesn’t ring an “ha-ha” moment and seems pretty obvious, the strategy is to avoid the notion by many that appointments are required to get your hair styled or cut at a busy or upper-end salon.

While it is true getting into one of the better salons can be difficult, there are generally stations and stylists available whereby you can fit-in folks who walk-in.  The benefit is you are able to avoid what is a deterent to many potential customers for coming into your shop – namely, the necessity and hassle required to stop-by or call to schedule an appointment.

Recently, as business continues to drop during this recession, I have increasingly seen higher-end salons letting folks know that appointments are not required, and in fact, new clients are welcome at the drop of a hat.

Can this hurt your reputation, though?  We asked several owners what their opinions were and the responses are not all that surprising.

We discussed this with what I would consider an “average” large beauty shop owner.  On Fridays and weekends, his station salon is generally full – of stylists.  These are mostly independents who have “rented” stations.  Give they only have 3-5 appointments per day, getting a walk-in 2 or 3 times a day can be a significant boost in traffic.  Additionally, this salon has a large “beauty shop” inventory of supplies.  So, getting a few new customers also brings the benefit of boosting sals of shampoos, brushes, dryers, falt irons, et al.

The second interview we had was with a partner/owner in a very upscale salon in the heart of a high-end outdoor shopping area.  Her perspective was her clientele came from word of mouth recommendations by satisfied clients and that her and her staff’s days were filled.  In fact, promoting “walk-ins welcome” would do very little good since their salon was located on a side street with little or no high-volume foot ot car traffic.

So, the debate seems to fall on the side of  promoting “no appointment needed” if…

  • You are in a highly trafficked area – either pedestrians or vehicles
  • You have excess capacity and time
  • Your price points are within the range of most reasonable consumers
  • You can benefit from ancillary beauty supply sales – combs, brushes, hairsprays, shampoos, blow dryers, etc.
  • You and your staff are well-trained in the art of customer service

Should You Publish Prices to Increase Salon Revenue?

Posted on August 14, 2009 with No Comments

Publishing your prices to the world – competitors or prospective customers, alike – can be a good thing and, well, a not so good thing.

With a deepening economy and salon traffic and sales down substantially, the creativity fires are brewing – leading to many conservative as well as fringe techniques for getting more folks through the door.

Most recently I noticed one of the top boutique salons in Atlanta publishing their prices on their marque.  Normally used for prophetic sayings or introducing new products, the sign clearly laid out all the prices they were charging for certain treatments…shampoo and style; shampoo, color and style, perms, et al!

While this may not seem too unusual, for this “top tier” exclusive salon, it was unexpected for me.  Does it work?  Well, yes and no.

The first argument is that you give away your pricing to your competition and you lose exclusivity.  The first issue is competitors can get your prices easy enough with a quick call or having a “shopper” stop by the salon or in fact have their hair done.

Yet pricing exclusivity issue is another challenge.  Exclusivity draws customers, and in some cases, repels them. The trick is to find the balance – which I believe is understanding what are the most common treatments in your area, finding a price point that will draw folks into the store, then keeping them (with service and a great hairstyle) for increased salon revenue?

So, how do you price the services??  I recommend running seasonal or situational sales – back-to-school, Thanksgiving, Halloween, wedding parties, etc.  Whatever the occassion, make sure it is well publisized – on your website, in the papers, on your sign, or have a small sign made-up to stick in your lawn, outside the store or in your window.

Remember, as you consider pricing and competition, that the majority of customers will stay with and be loyal to their stylist once they find someone who works well with them and does a great job on their hair.  Pulling someone away from that loyalty is tough, so make it easy with the right pricing and occasion. 

The idea to keep in the back of your mind is that if you normally see 60 customers per week and each of them extend their stylings one week, you will lose about 240 stylings per year – or the equivalent of roughly one month’s worth of revenue.   (Note- this assumes your clients get their hair styled once per month)

Price your services and consider your service specials accordingly to make-up for that lost traffic.

Increasing Salon Sales – Summer 2009

Posted on July 20, 2009 with No Comments

In keeping with our continued theme of improving salon sales, I wanted to share with you an idea from a friend of my wife and mine.

She owns a relatively upscale salon in the heart of Roswell, GA…you know the kind – lot’s of shops and boutiques nearby in a renovated, very old home.  It’s filled with art and unique antiques and her clientele get the best styling and are able to afford it.child-getting-haircut

As with most salons, her traffic has been down – fortunately many of her customers have not been directly affected by the poor economy, though her traffic has decreased measurably in the past 18 months.

In the south and southeast – Georgia, North and South Carolina, Florida and the panhandle states, many kids are starting to get ready for school (this was quick summer, uh?!)  With that in mind, our friend started offering free haircuts to children 10 years old and under when a mom or dad came in for styling.

This makes sense.  The kids are starting to get haircuts, buy clothes and get into the “groove” for their return to school.  They’re getting their haircut somewhere, so she figured it might as well be here (there).  And guess what…she was right.  Since the July 4th weekend, she has seen a big boost in traffic. 

And interestingly, many of the moms who often send the dads out to get cuts with the kids on weekends, scheduled appointments – needless to say, they have been “slammed” on the weekends – just as much of the wedding party group traffic has started to slow.

Depending on your target customer, this may or may not work for you…but, hopefully it will get your “imagination gears” turning with some possibly good ideas.

Good luck!