Most salons – even here in the Pacific Northwest, where the economy has not suffered to the same extent as most of the rest of the country – are feeling the pinch as people in our communities tighten their belts out of necessity or out of fear. Regardless of the reason, the result is the same, and salons have seen a significant increase in the length of time clients take to rebook services for men and for women, and they have seen a decrease in add-on services, in-salon color (vs. at home color), and of course in retail sales.

It may seem counter-intuitive to say that the first priority in today’s economy is to prebook repeat services, thinking that there will be resistance to rebooking within the recommend six weeks for women (fewer for men). There are ways to overcome the objections, increase the perceived value of your services and products, and keep clients on schedule with services that keep them looking their best – and feeling better than ever about it!
 
Keep clients on schedule with services that keep them looking their best – and feeling better than ever about it! For your regular clients who are extending the time between services, offer a simple “save 6 if you rebook in 6” promotion. Offer 6 dollars off their prebooked appointment. It’s worth it to keep your books full, and even at a 6 dollar per cut savings, you will make more money rebooking every 6 weeks than you would if they rebook every 8 weeks at the regular price. For men, whose services typically need to be repeated more often (and usually cost less) try “save 4 if you rebook in 4” or 3 in 3, etc. It’s easy to remember, and you will make more money keeping your books full in this way than seeking new clients. Again, you will make more money rebooking your male clientele every three weeks at a three dollar discount than you will booking them every 4 weeks at the regular haircut price. For you skeptics, I have included all my math at the end of the article.

If you do prebook services, a reminder call, e-mail, or postcard 3-4 days prior to the booked appointment will help cut down on no-shows and tell you if you have spaces opening up which a walk-in or client who needs a last-minute booking can take. Contact me if you would like a template for prebooking services in conjunction with reminder calls or e-mails and an e-mail communication program designed to alert your clients to those time slots you would like to fill up in the coming week to two-week period.

Introduce your staff and clients to a new culture by implementing a strong pre-booking system with incentives. In addition, if prebooking has not been part of your salon procedures, you will be introducing your clients to behaviors you want them to learn and repeat, so that at some point if you feel you need to take the promotion away, they are already in the habit of rebooking. If you are introducing a price increase, this type of promotion might be the perfect way to “soften” the blow to your existing clientele. Just as with retail pricing, you can structure your pricing so that you are factoring in the discounts and specials you offer. The client perceives the same savings, but you do not undervalue your services and products.

One, find out what is going on in their lives. If they are under a tremendous amount of stress due to smaller budgets, cut back in working hours or salary, or even a job loss, make sure first and foremost that you are making their salon experience an escape from that stress. Whether you incorporate a free scalp massage at the shampoo bowl (my personal favorite!), add in a brow wax, or offer a deep conditioning treatment, you give them an escape, a moment of relaxation and retreat from their ‘real life’ where they are likely the one trying to make life better for everyone else.

Give your clients an escape, a moment of relaxation and retreat from their ‘real life’ where they are likely the ones trying to make life better for everyone else. Extend the experience by evaluating the overall salon experience. Have you made your salon a “third space?” Do you offer a beverage or snack, is your waiting area clean and inviting, have you decorated for the season, do you welcome each client as they enter? If you are in an urban or suburban area with a considerable working professional clientele, have you considered making your salon a “hot spot” for wi-fi (wireless internet connection)? I recently read about a downtown salon which has gone even further; recognizing that their clients are busy and by choice or necessity “workaholics,” they have not only provided internet connections, they have a number of laptops right in the salon so that the woman or man who just can’t carve out time for color and a cut, or for a spa treatment, can have it all – the ability to stay connected at work while getting the pampering and cosmetic attention they need.

No one needs your services more than job hunters, who are regularly subjected to scrutiny where, whether fair or not, they are judged to some degree by their appearance. Since this crowd can be short on cash, for those clients who you know are looking for work or seeking a better paying job, offer a job hunter’s special. This can be in the form of a dollar or percentage off their services, or can be a discount on add-on services (such as a special price on a color service with a regularly priced haircut) or a discount on the products they need to maintain the look – such as stylers, skin care or cosmetics items.

If you work creatively, you can double book your time, making more on the hour not less, even with a discount. Students are notoriously poor (and so are their parents!) And not only that, if they go away to school, they may have seriously neglected their hair or got a bad cut from a new stylist (or worse, from someone they live with in the dorms). For your regular clients who have college age students, consider a mom and kid or dad and kid package price on cuts they can come in together for. Not only do they get their look put back on track, they get to spend that time together during winter or spring breaks. And if you work creatively, you can double book your time, actually making more on the hour than less, even with the discount!

"The Math"
Formula: # Clients x Service Cost x Visits per Year = Annual Revenue
If you count about 125 regular women clients among your clientele, and see them every 6 weeks (that's about 9x per year) at an average ticket of $44, your annual revenue from these women is $49500.

If you see these same 125 regular women clients every 8 weeks (7x per year), at the same average ticket price, your revenues decrease sharply, to $38,500.

But if you offer a $6 discount for rebooking within 6 weeks for these same 125 clients, you still see them 9x per year, at an average ticket of $38, but your annual revenue for these clients only falls to $42,750 - more than $4,000 better than if you keep them at the same ticket price but see them 2x less each year.

When it comes to men, who likely need trimmed every 3-4 weeks, offering a save $3 when you re-book in 3 weeks works just as well. Let's look at the same number of clients, 125.

125 Male Clients at an average ticket of $28 per visit (17x per year) generate an annual revenue of $59,500. When they stretch their visits just 1 week to every 4 weeks (13x per year) your annual revenue drops $14,000 to $45,500. However, by offering a $3 discount for rebooking within 3 weeks, your revenues remain much healthier, at $53,125 per year -- more than $7,000 better than if they remain at full ticket price but add just one week between visits.

If you are working on your 2009 pricing strategy, this is a great time to incorporate a loyalty pre-booking plan into your pricing structure, creating a win-win scenario for stylists and clients (and salon owners!) that helps to keep your books full during the economic downturn.

Elizabeth Brown, Be InPulse Branding, Marketing & Design
mail to designit at beinpulse dot com