Salon Today - November 2008 - (Page 33)

Expanding your services, your staff, your client base and your proﬁts is challenging at any time. In a recession, where everyone is mindful of money, it seems daunting. But once you’ve developed a strategic plan that cuts costs and streamlines your business, you’ll have funds available to reinvest in the salon—the critical ﬁrst step for building your business in tough times. Service Strategies When times are tough for clients, the ﬁrst things they’ll cut from their budget are what they view as non-essential, luxury items. Depending on how you’ve positioned your business, your spa services could be the ﬁrst to take a hit. For example, that soccer mom who’s covering her 40percent gray is more likely to end up on the books than the lady who feels like pampering herself with full-day package. Daired Ogle, owner of Daired’s Salon and Spa Pangea, believes how well your spa competes in the new economy boils down to what your perceived value is. “Our spa prices are not as low as others in our market, so we always have to make sure we are giving good value—that’s one area where we compete against ourselves.” To help transform the mentality of his spa services from a luxury service to required maintenance, he recently designed and priced an abbreviated treatment for each department—nails, skin care and massage. For example, clients can now select the 30-minute massage that speciﬁcally targets a problem area, such as shoulder pain. At $45, the pricing is more economical, ﬁtting into a client’s reduced budget. “You are giving them a great service at a lower price, which helps you compete in a tight economy,” says Ogle. “The tough part is that with the reduced service, the expectation of what we’ll deliver doesn’t go down. You have to work harder to meet those expectations.” Larry Silvestri, chief operating ofﬁcer of Mario Tricoci Hair Salons and Spas, agrees. “It’s all about the value proposition to the guest— she will really look at what she’s getting for her money. Don’t discount and lessen the credibility of your service, but be aware that she’s really looking for the value of the service.” During economic uncertainty, consultations become even more important. Whether the client takes up her stylist on a suggested change in style or color, she wants to know her stylist is staying current on the trends and loves hearing personal suggestions. “Show her how she would tweak a style or how color could complement the cut or enhance her skintone,” says Silvestri. Silver and Gold “Make new friends, but keep the old. One is silver and the other gold.” When it comes to attracting new clients and retaining existing ones, that old Girl Scout campﬁre song truly applies. New clients are imperative to the growth of your business, yet your existing clients are your bread and butter. It has never been more important to reinforce your referral and retention programs. Your loyal, valuable, beautyfocused clients are likely to have friends who are just like them. What would it take to get them to refer their friends? Brad Masterson, vice president of Y Public Relations and PR counsel to Rusk, Cosmoprof and Professional “All guests who receive color are offered a complimentary parafﬁn dip for their hands toward the end of processing time.” —Paige McCarty, Kenneth L. Salon & Spa, Poulsbo, Washington >> | 33 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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