How to Profit in These Tough Financial Times
By: Paul Carbis. Photo: Svilen Mushkatov. In recent months I have enjoyed completing several tours of New Zealand visiting many smaller towns as well as the major cities. Across the country, salon owners are telling me that it is difficult to make a profit in these tough financial times that most of the world seems to be experiencing. Whilst it is true that most salons have noticed their patrons have tightened their financial belts there are still a number of salons trading very well and this poses the question – Why are so many struggling and yet some have barely noticed the economic downturn?
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Probably more importantly, how do salon owners battle through these times and maintain profit margins?
The successful salons I deal with have all had three factors in common.
1. They have a salon culture of high retail sales and present themselves as professional retail outlets to their customers.
2. They have high re-booking rates for all services.
3. They don’t rely on advertising for new customers to increase their turnover. Instead they work their data base extensively and have systems in place that ensure that they maximise the spend of their existing clients.
Let’s explore this in a little more detail.
