Show Me The Money!
Something I hear from struggling salon owners constantly is nobody has any money because of the economy and aren’t spending on luxuries.
Well I want to let you in on a little secret, people are spending money every single day. And they are not just buying the bare essentials. They are purchasing a lot of things they want and a lot of things they need. The money is out there. You just need a compelling reason for them to spend it with you.
Unfortunately salon owners first resort when trying to creat a compelling reason to buy services from them is to offer a discount. Price is the easist and lazist way to try and attract business, it is also the most unprofitable way.
Let’s look at this example, say I am a beauty therapist doing facials. I charge $120 for a facial. It’s the going rate and I have some business. If I were to drop my price to $60 I would notice an upturn in business. But I would be also taking a massive hit in profit. Relying on the turn over I would have to double my clients just to make the same as before.
But what if I was to offer a brow makeover valued at $45 as a free upgrade on the facial? I have created a bundled product valued at $165 but offering for $120. The cost is minimal, a bit of wax and eyebrow tint, I already have them on the table and the time is minimal. If your a hairdresser, it might be adding a parafin hand dip while they are having their hair washed. Again minimal cost for product and included in the time they are already there but the added value is enormous.
What I am trying to say essentially is you don’t have to bend on your prices, but your have to get creative and give clients a reason to spend their money with you.
Your thinking needs to change. Stop thinking that people don’t want to spend money. The want to spend it, their even desperate to spend it. You need to stop thinking that people are not buying the services you sell.
The reality is that they ARE buying it, just from someone else. Chances are you don’t have a money problem you have an offer problem!!