Salon Today - November 2008 - (Page 29)

until we sold all of what we had. We also took a hard look at products that weren’t selling and negotiated to send them back—that freed up more credit that we could order against.” Chreky also reduced the volume of her inventory. “Where we used to keep 24 of an item—now we keep six. We identiﬁed a front desk staff member who is tough as nails and put her in charge of inventory. Too often, a salon’s inventory person becomes buddies with the sales reps and will jump in to help the reps make their quotas.” In the boutique area, Thomas Gentry says she’s less likely to stock any items that haven’t already proven themselves as strong sellers. “We trended toward easy-to-pick-up, inexpensive items that have a strong track record. For example, we do amazingly well with greeting cards, something I was really hesitant to try at ﬁrst.” While many owners are scaling back on inventory, Gordon advises this may be the best time to shop for a new product line for your salon. “With distributors feeling the pinch, they may be sweetening their deals, more eager to pitch in on education and co-op advertising.” Silvestri. “It’s even more important when times are tough—you need to demonstrate to your staff and your clients that you believe in your business and are still investing in it.” Furthermore, Silvestri cautions against cutting back stylist hours when things are slow. “When most technicians are slow, they want to go home. But when they’re gone, they aren’t available to take advantage of that new walk-in client—and reducing hours promotes a feeling of insecurity.” Instead, coach service providers to use downtime to learn or practice a new technique, make follow-up phone calls, write thank-you notes or network and drum up new business. “ Make sure you don’t use the failing economy as an excuse to not do better business. —Larry Kopsa Kopsa Otte CPA ” Increase Your Flexibility As you face an uncertain economy, remember you’re not alone. These troubling times also impact your staff and your clients. Your ability to adapt your business to these changes will have an important impact on your success. > By The Numbers Whether we’re in a recession or not, times are deﬁnitely changing. We asked salon and spa owners how they’re coping: 8% 7% 26% 59% How is your salon coping during these belt-tightening times? 7%—Suffering enormously 59%—Somewhat suffering 26%—Not suffering at all 8%—Unusual, sporadic A Sustainable Future Remember that your clients are always studying the value you offer them with each service. “To keep your salon recession-proof, concentrate on your pillars—keep your place clean, your atmosphere friendly and your staff educated,” says Silvestri. “If you slip on one of these three, guests will be more critical of you in tough economic times, versus when money is freer.” That makes advanced education for both you and your staff even more important. Learning new techniques not only keeps staff motivated and excited, but when they can share those innovations with clients, it separates you from your competition. Then when times turn around, you are well poised to increase market share. “Although it’s important to study your costs, don’t stop investing in your business,” warns 44% 56% Do you offer incentives for ﬁrst-time clients to rebook, such as a discounted or complimentary add-on service? 44%—Yes 56%—No 51% 49% Do you use tracking software to follow up with clients who haven’t scheduled lately? 51%—Yes 49%—No 58% 42% Do you have a membership, referral or rewards program for clients? 58%—Yes 42%—No “We reward our guests with a $10 gift card each time they refer a new guest.” —Jane Sorensen, Dimensions, Design and Wellness Studio, Carver, Massachusetts >> | 29 www.salontoday.com November 2008 http://www.salontoday.com

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Salon Today - November 2008 Contents Editor's Note Reception Fashion Sense Marketing Roundtable Decor Spa Menu Dream Team Pinch Proof Growing Pains Products Owner to Owner

Salon Today - November 2008

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