31 August, 2020

 •  Blog

Strategies to make your beauty salon make more profit


To increase profitability, the golden rule says that businesses have only two alternatives available: increasing revenues or decreasing expenses.

In this article, we will explore the first part of this equation and present 5 suggestions for your beauty salon to earn more and better.

Price services correctly, look for alternatives to capture value and avoid discounts

Increase service categories and offerings according to local demand


Do not give up reselling products

Loyalty your customer base

  • Price services correctly and create alternatives to capture value

Pricing your services inappropriately can take away your competitiveness, but it can also leave money on the table. Assess the purchasing power of your region, the price of competition, customer alternatives and the service differentials of your salon to determine your prices.

If your salon delivers more comfort, quality, punctuality and service level, do not hesitate to clearly communicate to the customer and charge for it. When delivering more VALUE to the customer, it is natural that a higher price also accompanies.

Avoid discounts. Discounts must be granted only in extraordinary cases. Discounts practiced once tend to repeat themselves and end up eating away at the edges of the salon. If your pricing policy is adjusted, there will be no reason to grant discounts.

  • Increase service categories and offerings according to local demand

Do your clients usually ask for a massage? Are there barber shops in your area?

Does your salon have a manicure / pedicure?

Consider expanding the portfolio of services offered by your salon to build new solutions and expand your customer base and sources of revenue, for example with the bride’s day or the beauty day.

Generally, entering a new category of services requires investments in equipment and personnel. Therefore, study the demand before making your decision. Talk to your current customers and test the idea before implementation.

  • Upsell

A client went to the salon and asked to touch up the coloring. However, the professional noticed that the hair had split ends and the strands are dry and brittle. During the reception, the client commented that she was going to a wedding in the evening and that therefore she made an appointment in the salon.

Upsell is nothing more than selling more or with more value to customers who interact with your business. In the case above, the client sought the salon to touch up the color but showed the need or possibility of selling more services. She is already in the salon so the propensity to accept her suggestions is greater due to the convenience factor.

In this case, the attending professional could perform the following upsell:

– A cut of the tips to correct split ends

– A hydration and strengthening treatment

– A fine hairstyle for the night

Each upsell sold represents additional revenue and profit from the same customer. In this way, a value is generated that would not be generated without the upsell effort. The upsell to be efficient must generate utility for the customer, who in the end spends more and leaves more satisfied. Knowing how to communicate the reason for the suggestion and the additional benefit of upsell is essential for greater conversion.

  • Sell home care and treatment maintenance products

In the United States and Europe, 40% of salons’ revenues are related to the sale of beauty products for use at home and maintenance of treatments carried out by professionals. In Brazil, this index drops to 10% of the salon’s revenue.

One of the reasons for this low percentage is the lack of suggestions from hairdressers themselves due to lack of custom or lack of products in stock.

Think of reselling products as an additional revenue department for your salon. Offer commissions and awards to professionals who stand out in this sale. Remember that the consumer normally uses shampoo in conditioners at home, why not buy special products at the salon?

Each treatment performed in the salon should automatically generate a maintenance protocol at home. It is estimated that, only by offering frequently to each customer, it is possible for a salon to double the sales of maintenance products.

Ask what products the customer uses at home, find out if there is any product or category that he does not use in his routine, present solutions and explain the benefit of using the product you are offering.

Practice generates trust and a lot more sales trust.

  • Loyalty your customer base

Research indicates that the cost to acquire or recover lost customers is 6 to 9 times higher than the cost to maintain them. Therefore, make sure that your customer journey is flawless and, more than that, that customers are being loyal and with high rates of return.

Loyalty creates greater stability and predictability in revenues and can be built in different ways such as special conditions, preferential appointments during prime times, gifts or even building the relationship in a personal way with messages on important dates, sending content of interest to the client or engagement on the social networks.

Develop loyalty mechanisms that adapt to your clientele and make each client feel unique and special. This will help not only build the customer base, but also intensify recommendations and powerful word of mouth.