Is your Hair Salon making a profit?
Salons can earn an average profit margin of 8.2%, which is higher than the general business average of 7.7%. Of course, salons that are well managed can earn well above this average.
A 10% profit margin is usually the minimum aim, though the better you can manage your salon finances, the higher this can be.
So here are my 4 tried and tested ways you can improve your profit in your salon business.
1.Reduce your salon overheads.
Wages were often the reason my salon did not make the profit I wanted so unless I could ensure my stylists were bringing in 3.5 wages within a certain time, I would choose to use the apprenticeship programmes. This does sometimes come with its own issues for example if an apprentice was unwilling to develop I would reduce hours or replace them with either a new apprentice or new team member who had the passion to progress within their industry.
2. Encourage your guests to visit your salon
To get as many repeat clients as possible- you also want to maximise the number of times they come to your salon. The more often a client returns the bigger profit your salon will make.
Teach your team to ask every client when they want to rebook either 6 or 7 weeks dependant on service or treatment (don’t give them the chance to say yes or no) and don’t underestimate the power of client loyalty schemes, either.
3. Train a team member in additional treatments.
I often did this if I had a graduate hairstylist in beauty treatments using the beauty apprenticeship or nail apprenticeship to add to their learning and adding new treatments to your salon can also give your clients a new reason to return.
If they already love coming to you for their hair, they are more likely to come to you if you offer other beauty treatments, like microblading or eyelash extensions too.
4. Increase your average order value.
By promoting other products & services to your guests when they visit. Find other local businesses to partner with and take a commission or rent for the space. After all, a small space in your salon won’t cost you anything but could see some return on sales.
Today we help many students break into the hair and beauty industry and provide business training to help you make your salon profitable, we can also match you with an apprentice and provide guidance on apprenticeship funding, for more information about any of our courses or the apprenticeship scheme please feel free to contact us.