The quickest way to increase profit in your salon

I don’t know anyone who isn’t keen to grow business profit. The simple financial example below shows just how easily it can be done by any hair or beauty salon owner.

But first a quick recap on salon profitability.

If you want to increase your hair or beauty salon profits there are 4 main ways:

  • Grow your client base
  • Increase the average spend per visit
  • Increase how often they visit your business
  • Reduce your salon overheads

There is one sure-fire way to tick all of the above boxes. And it’s not rocket science. Just good old financial common sense.

Just make sure your new salon clients return for a 2nd visit (and a 3rd and 4th for that matter).

Yep, just do this and you will:

  • Increase your client numbers (obviously!)
  • Research shows established clients are more likely to spend more at each visit
  • You get the opportunity to re-book them on each visit and increase the frequency of salon visits
  • We all know the marketing mantra: it is 5/7 times cheaper to retain a customer than to acquire a new one.

If you don’t believe me here’s the maths…


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. This salon profit calculation is for a hair salon. However, it works equally well for a beauty salon or day spa.


Let’s say your average cut and finish is £35.

Your client makes an average of 5 visits per year to you.

£35 x 5 visits = £175 spend with your salon per year.

Let’s add in a couple of colour services each year at £65 each.

That’s a POTENTIAL total yearly of £305 per new client.


Now, say you have 50 new clients a month coming to your hair salon.

That’s 600 new clients a year with a possible 12 month spend of £305 each x 600 = £183,000.

Whoop! Whoop!



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.


Remember the average client spend per year (in this example) is £305.

Multiply £305 by 402 (the number of clients who never came back for a 2nd visit) and…

£122,610 has just walked out of your hair salon door.

£122,610. That’s an awful lot of profit you’re missing out on. Each year. Just think what you could do with an extra £122,610 a year.


Calculate your salon’s increased profit potential

Now try the calculation for your hair or beauty salon to see how much you are losing each time a new client doesn’t show up again.

To increase your salon profits hopefully you can see that what you need to do is straight-forward – just ensure they return for a 2nd visit and become loyal clients.

How you do it is rather more tricky. This is where your salon marketing steps in.

Good salon marketing will help increase profits in your business by increasing the number of new clients who return for that 2nd visit and become ‘regulars’. Don’t forget, in the example above, every client that stays puts another £305 in your pocket each year. Convert an extra 10% of your new clients into loyal ones and you’ve just had an £18,300 increase in gross profit.

Moreover, that’s £18,300 in YOUR till, not your competitors’ till.

Can you afford NOT to invest in professional salon marketing help and advice?

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