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How to make your salon more profitable

Want to boost your salon’s profitability? Then re-evaluate your marketing mindset and shed those old habits from the economic downturn.

This blog was inspired by one of our agency salon clients, Carrie. Although her salon was fully booked much of the week she was only just breaking even.

It soon became clear that she was stuck in a ‘batten down the hatches’ mentality which (understandably) started during the economic downturn. We persuaded her to adopt a more proactive approach to pricing and client management and she transformed her business from surviving to thriving.

Here’s what we looked at so you can see if it would help you achieve a similar turnaround:

 

Tough salon decisions. Profitable rewards.

Changing your marketing approach can significantly impact your bottom line. It’s all about making smart, and yes, sometimes tough, decisions.

For a more profitable hair or beauty biz stop hanging on to low-grade clients, focus on high-value clients and raise your prices.

It’s not about being ruthless… it’s about being savvy.

 

Four client types and your salon’s profitability

Understanding your clients is key. In my experience, they typically fall into four profit categories based on their spending habits, visit frequency, and maintenance needs:

A Listers: High profit/Low maintenance

B List: Medium profit/High maintenance

C List: Low profit/Low maintenance

D List: Low profit/High maintenance

What do I mean by maintenance level? Simply how much of your salon time and resources are needed to service them.

 

Who boosts your salon’s bottom line?

A Listers: These clients are gold. Love them! 🌟

B List: They need a closer look. Can you turn them into A listers? 🤔

C List: They’re okay but they won’t make you rich 💤

D List: These drain your time and resources ⚠️

 

Are these holding your salon profits back?

D List clients – all salons have them – and Carrie’s had more than its fair share.

You know the ones. They spend little yet want the best possible deal and the juiciest discount.

They cancel last-minute, mess you around, don’t buy retail, drive your team crazy and stop you from focusing on more profitable clients.

 

The power of letting go

It might seem counterintuitive, but letting go of D List clients can actually boost your profits.

Take the plunge. Ease them out. Free up precious resources to spend focus on high-value clients who contribute more to your salon business.

 

Break up for better salon profits

It’s never easy to say goodbye to clients, especially when they’ve been coming to you for years. But you need to bite the bullet – these D Listers are losing you money and holding you back.

Raising your prices is the easiest, least contentious way to ease them out. This is the strategic marketing approach I suggested to Carrie. It forced her D Listers to either accept her higher rates or leave.

Either way you win:

  • They leave, taking their demanding, low-spending ways elsewhere.
  • Or stay and pay your higher prices which justify their maintenance level.

 

Nurture the clients who make you money

As I said to Carrie, losing clients is not business suicide – it’s a strategic marketing decision. It means you can invest in your A Listers and give them all the love and attention they deserve.

Remember:

You need to nurture the clients who make you money. These are the clients who will try new services, buy retail products, and refer their friends.

 

Manage your salon for greater profits

By focusing on high-value clients and tactfully managing the D List ones Carrie ensured her time and resources are now used where they matter most.

Ready to transform your salon’s profitability? The first step is to change your marketing mindset.

Want more clients, rebookings & sales?

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