Want to turbocharge your salon profit? Take it to the next level?
Let’s dive into a game-changing strategy for ambitious salon owners like you.
The 4 pillars of salon profitability
- Expand your client base.
- Boost average spend per visit.
- Encourage more frequent visits.
- Streamline salon expenses.
The key to mastering these four? Ensure your first-time salon clients return, not just for a second visit, but third, fourth, and beyond.
Here’s why:
- Client growth: Retained clients naturally grow your client base.
- Increased spend: Established clients tend to spend more per visit.
- Frequency: Re-book them at each visit and increase the frequency of salon visits.
- Cost savings: It’s a well-known fact – retaining a client is 5-7 times less expensive than acquiring a new one.
Calculation: How to improve your salon’s bottom line
Take a look at this simple salon calculation to see how much you LOSE if you don’t hang onto that new client after their 1st visit.
1
Let’s say your average treatment/service is £40.
Your client makes an average of 5 visits per year to you.
£40 x 5 visits = £200 spend with your salon per year.
That’s a POTENTIAL total yearly of £200 per new client.
2
Now, say you have 50 new clients a month coming to your salon.
That’s 600 new clients a year with a possible 12 month spend of £200 each x 600 = £120,000 per year.
Whoop! Whoop!
3
But…
Most hair and beauty salons only keep about 33% of new clients. That is, 67% never return for that 2nd visit.
Have you ever thought how much this leakage costs your salon?
The answer is rather scary, here it is…
67% of your 600 new clients is 402. Gulp!
402 clients a year never return after their 1st visit. It makes you think.
4
Remember the average client spend per year (in this example) is £200.
Multiply £200 by 402 (the number of clients who never came back for a 2nd visit) and…
£80,400 has just walked out of your salon door.
£80,400. That’s an awful lot of profit you’re missing out on. Each year. Just think what you could do with an extra £80,400 a year.
Don’t forget, in the example above, every client that stays puts another £200 in your pocket each year.
Imagine converting an extra 10% of your new clients into loyal ones. In this example, just a 10% improvement would give you £12,000 extra in gross profit for the year. And remember, that’s £12,000 in YOUR till, not your competitors’ till.
Salon Profit Calculator: Max YOUR profits
Now it’s your turn…
Use our Salon Profit Calculator 👇🏼 to see how much potential revenue is slipping through the cracks in your biz.
Play around with your salon figures. Input a few details and understand how even small changes can ramp up your earnings for no risk.
Share with your salon team
Do you have a stylist or therapist whose first visit return rate is poor?
Share this calculator in a 1:1 meeting with them. Letting them play around with possible revenue combinations powerfully brings home how much more money they could earn for the salon. And how much more commission they could take home.
Turn new clients into loyal ones
If you’re keen to make a difference in your biz:
- This blog walks you through 12 ways to get local new clients into your salon.
- Market your salon in minutes with my monthly Club membership.
- I show you how to create a Salon Social Marketing Plan here.
- Think your team could up their game to improve first visit re-booking rates? Try my recommendations here.