BUSINESS

Business consultant Liz McKeon reveals how small gains can make big changes to your salon’s bottom line

SHUTTERSTOCK

Every salon owner is looking for ways to increase turnover and profits. Consider the following equation:

1. How many clients visit your salon on an average week?
2. Let’s say between everyone on your team – 100 clients visited your business.
3. If every one of those clients spent just an extra £10, that would generate an extra £1,000.
 4. And, if that happened every week for one year, that is an extra £52,000 added to your bottom line!

This equation demonstrates the power of upselling and cross-selling, both of which are possibly an untapped resource in your salon. Upselling is to persuade a client to buy something extra or more expensive. For example, if a client asks to purchase a shampoo, suggest she also purchases a conditioner. Cross-selling is to sell a different product or service to an existing client. For example, suggest highlights to a client who only ever comes to your salon for a cut. These are techniques where you as the seller, invite the client to purchase more expensive upgrades, or other add-ons to generate more revenue and keep the client excited about all you have to offer. It simply means exposing the client to other options that were perhaps not previously considered.

Create a five-day sales training course on upselling and crossselling for your team and watch your profits soar...

DAY 1:
Focus on product knowledge – every staff member needs to know every detail about all your services and products.

DAY 2:
Tell your team not to oversell – make sure they stop their pitch in enough time to give your clients time and space to make a decision.

DAY 3:
Start listening – tell your team to try and find out what the client is asking for. Beyond that, find out what they need.

DAY 4:
Establish rapport and trust – before jumping in to make the upsell or cross-sell, tell your team to establish a relationship.

DAY 5:
Ask your team to carry out a role play asking for the sale.

Upselling and cross-selling online will give you an extra revenue stream. If you give clients the option to add additional services when they are booking an appointment, you’ll find it makes them more open to the idea of ‘upgrading’. There are times when your clients won’t be able to make it for a session but will still need your professional advice. Online consultations will also give you the chance to solve their problems and you can make extra money by selling the homecare items that will help your clients between salon visits.

It’s time to stop giving clients discounts and offers. Instead, add extras to your client’s service. Every client likes to get a little more than they expected. To get started you may need to give your client a little extra luxury at the same price. If the client loves the result of the bonus service, they are bound to want the same service on their next visit and pay for it, providing it is offered to them. For example, you could give away one treatment at the basin and then upsell it to that client going forward. With just a little effort you can encourage your clients to spend more on services, invest in retail and visit your salon business more often.