PROFIT is the most important aspect of any business. Turnover is necessary but if there is no profit or not enough profit the business is not sustainable.

photo credit: thomaswanhoff

Unfortunately most salon/spa owners focus on the turnover and the money that is brought into the business on a daily basis but very few really give attention to what the actual profitability of the business is. Without a good profit, cash flow will be the first to take strain and once your cash flow starts taking strain; well I don’t really need to keep going as I think you know what can come next.

Listed below are just 5 of the top examples of profit munchers in the spa/salon business and in fact if not kept strictly under control and monitored on a daily basis these items below could very well be the cause of your business closing down.

1. candles
2. telephone calls
3. poor bookings
4. discounting
5. product wastage

1. Candles
Candles are almost a must for the spa and salon business. They create an amazing ambiance and add to the relaxation and anti-stress aspect that consumers look for when coming to your salon. These gorgeous flickering lights are a major fire hazard, can get messy and hot. Candles are also the number one profit muncher in your business as they are a consumable that carries a huge cost but is completely necessary. Do a small exercise and calculate your total candle expenditure over the last 12 months and you will be very shocked at the figures. My suggestion here is to invest in good quality rechargeable candles. They come in different colors and flicker just like a real candle.

What’s even better is that you have a full range of votives to choose from to house your rechargeable candle. They come in sets of 6, 12 and 24 with a charger unit just like a cell phone charger unit. Initially the investment is much higher than purchasing candles however long term they work out much cheaper and safer. The worst that can happen if you leave a rechargeable candle burning is that it runs out of charge but at least your salon wont burn down over night!

2. Telephone Calls
Without a telephone your business cannot function and you are cut off from the consumer that you need to get in through your doors. Once again I am sure that when you look at your telephone bill every month you really want to cry and keep saying over and over again to your staff to try and cut the phone bill down but it never seems to decrease. Here are a few ways to cut your phone bill for sure:

a) Take out a business package from Telkom that gives you a certain amount of free minutes similar to a cell phone package.

b) Install a premi cell line. This cuts your cell phone bill by at least 40%. And I am sure that most calls are to your clients cell phones.

c) Choose only one method of booking confirmation that works for your business be it either a phone call or a sms message but don’t do both as that is an unnecessary expense.

3. Poor bookings
You are probably asking yourself right now how can you loose profit with poor bookings? After analyzing only 1 spas bookings for a week we worked out that the business was loosing approximately R50 000-00 worth of business in that week. This works out to R200 000-00 in a month! The booking/reservations element of your business is a whole department and training course on its own but let me try giving you a few pointers on effective bookings:

a) Always fill your appointments in the morning first. You must offer your client a time and not just jump at the first time slot they ask for. It’s very much like calling your doctor for an appointment, they offer you times and you pick one of them so do the same in your business and always try fill from the morning first.

b) Do NOT allow 15 minutes gap here and there as this costs you dearly at the end of a day. You must insist the client comes in at the time you have available as they can shuffle their day with 15 minutes but you lose major turnover for those few minutes and especially if there are 4 or 5 of those kind of gaps in a day.

4. Discounting
Have you ever heard of your doctor or dentist sending out a sms offering you a discount for appointments? No I did not think so and if you did receive that type of message would you not assume there was a problem? Discounting cheapens your business and almost gives the message that you need desperately to get feet in the door.

You will also begin to attract the discount hunter type of client that is not really the type of client you want to keep long term as they begin to expect discounts permanently. A very easy and simple way to offer a so-called discount to your client is to rather give added value free of charge which in essence is the same concept as discounting but instead you are ensuring to keep the client in your salon longer by giving them another service free of charge they would normally not have booked for. This also exposes them to other services in your salon and can ensure loyalty and continued bookings.

5. Product wastage
This is the most difficult profit muncher to control but it can be controlled. Remember if you don’t pay for something out of your own pocket, you don’t really feel the responsibility towards it so don’t get disheartened when you see product wastage in your business as this is very common. There are a few ways to try and reduce the amount of product wastage namely:

a) Do not stock each room with all the products. I repeat, Do Not Stock Each Room With All the Products! I cannot stress this point enough and have often had the situation where the spa/salon owner feels it too much effort to implement a stock control system and simply fully stocks each treatment room only to call me a few months down the line asking for help as their stock is either missing or depleted with only a few treatments. Keep facial kits in your store room, these are boxes which can really look gorgeous either in leather, timber or tin which contain all the products necessary for that particular treatment.

Depending on the number of treatment rooms you have is how many of each treatment box you will keep. For example a hydrating facial is very popular so you may keep 3 of these boxes but only one oily skin box. Any professional treatment that is packaged in bulk such as a 10kg bucket or 20 sachets of a particular mask in a box, this will not be kept in the treatment boxes but rather be ordered out of the stock room by the therapist. The stock room must have an in and out register and every person taking or replacing stock must sign in the register.

I would also recommend putting a CCTV camera in this room. For manicures and pedicures I would decant into small containers the exact amount required for the treatment as this prevents the therapists from using more product and also stops the client from wondering why the therapist is only using such a small amount of product not realizing the quantities required. I would also issue each and every therapist with her own tool kit and consumable kit which she will replenish weekly also keeping her on her toes as to wastage and as for the tools if they go missing the therapist has to replace the tools from her own pocket. For very expensive treatments with a very high product costing I would keep the products in the managers office and all staff performing those treatments would request the treatment box.

I would like to motivate you to really try and implement these systems listed above if you have not already done so in your business and I can assure you that it will make a difference.

Scott White Fitness Equipment and Day Spa NLP Certification

Article Source: ArticleSpan

In the Internet age there is not one business that cannot benefit from an online presence. For salon or spa owners an online store is a necessity. It is entirely conceivable for your online store to generate more income as your store inside your salon or spa.

Your online store should offer your clients the opportunity to purchase new products, frequently used products, learn about new procedures in detail and book appointments for services.

photo credit: House Of Sims

Your online store should offer many more products than are available for sale in your salon. Why? Because you do not have to purchase stock or inventory until it is ordered. The use of drop shipping can be set up in advance sending the product directly to your client as soon as it is ordered and paid for.

An online store is an overlooked income generator by salons and spas in part because more salons and spas should be retailing much more. Frequently small salons or spas will site lack of funds as a reason not to open an online store. An online store does not have to depend on physical inventory. Salon and spa owners can fill their online store much like a wish list as long as they can deliver the products within an acceptable time frame.

Your online store should definitely have the same products that are carried in your salon or spa for clients that don’t have time to shop.

Expanding your online store to include other products that are currently not available in your salon or spa will bring in new clients because you are selling the products online that they are looking for. Always contact clients that purchase from you online to thank them for the sale and to find out if they are pleased with their purchase. This type of customer services for online shoppers will take the chill out of an online sale and replace it with the warmth of your salon or spa.

It is very important for clients who are apprehensive about online purchases to reassure them and offer to show them on your site just how easy it is to buy from you online.

Salon and spa owners will be surprised at just how affordable it is to build a web site with an online store and online appointment scheduling features. Salon and spa owners can link with vendor’s websites that offer demos and other videos that introduce new services and products.

Your online store and your web site are always open and capable of generating as much revenue after the salon or spa is closed as when open. Salon and spa owners should spend time exploring additional products and services that can complement your existing venture. An online store is profitable and affordable.
Every salon and spa owner will face direct competition. Communicate with your staff and clients about new products and services. Increase your use of the Internet for exposure that can easily convert to income and to offer products you do not have to inventory.

Staying current in business and looking for competitive advantage are key to growing and maintaining your business in rough economic times. John Ramallo has been in online software for over 12 years. His online appointment scheduling software can be found at NetwaveOnlineScheduling.com. Also look for a variety of additional resources and articles at NetwaveSolutions.com.

Article Source: ArticleSpan

Salons and spas looking for the competitive edge are not alone. Salon and spa owners are learning to embrace technology with online appointment scheduling and an elaborate yet not expensive Internet presence.

photo credit: yachtfan

Salon and spa owners should spend as much time as possible on the Internet. Visiting your competitor’s websites and their vendors websites should be an exercise performed at least monthly.

If you don’t know what your competition is doing you are not doing all you can to remain competitive in a highly competitive industry. Customer service extends after the client leaves your establishment. Each customer should be called or contacted at least once a month just to let them know what you have new and exciting to offer them.

Modernize and update your salon and spa especially if you still do not have a website. Start making plans to have one designed that includes the following:

• Online appointment scheduling because you will save time and make more money if your clients can schedule services online.

• Offer an overview of the entire staff and the services you offer and make sure to include the price and the time it takes to perform the service.

• Videos about products, services and techniques

• Articles about hair, skin and fashion

• Products you carry in your salon or spa and products that can be drop shipped to clients should be available on your web site.

• Contact information and a map if necessary guiding clients to your establishment

• Before and after photos of your clients on your website along with references

• Your philosophy

Your website should be updated monthly because every month something new should be happening in your salon or spa. Offering something new does not mean changing anything, it means you will offer new products and services every month.

Sometimes even the smallest detail like thank you notes to clients, sending them birthday and anniversary cards will keep your clients coming back and they will bring their friends and relatives.

Modernize and update your salon’s appearance. This does not mean paint if it does not need paint. Modernize and updating means making sure everything is fresh and replaced before it is worn. Even the magazines in the waiting room should be protected against wear.

Modernize and update your salon or spa by continuing your education and implement a program that provides for the continuing education of your staff. Sometimes modernizing and updating your salon or spa will mean bringing on another licensed professional. Make sure any new service provider has a client-centered attitude and who is computer and Internet literate.

Online appointment scheduling is just the beginning of modernizing and updating a salon or spa. Online appointment scheduling should be incorporated in your website. Offer Internet specials like a percentage off of service if clients use your online store or make appointments online.

To find the best web site design firm to build your online presence or to update a web site you already have, visit other salon and spa web sites. Spend some quality time visiting online with salons and spas in other countries.

Work smarter, not harder, and spend your extra time generating more revenue for your business. John Ramallo has been in the online software business for over 12 years. His online appointment scheduling software can be found at NetwaveOnlineScheduling.com. Also look for a variety of additional business resources and articles at NetwaveSolutions.com/resources.

Article Source: ArticleSpan