What management errors reduce the profitability of a beauty salon

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Maksudasm
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Joined: Thu Jan 02, 2025 6:46 am

What management errors reduce the profitability of a beauty salon

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There are either no discounts at all, or they are too big

There are either no discounts at all, or they are too big

Source: shutterstock.com

Very often, salon business owners fall into two extremes: there are either no discounts at all, or they are so small that they do not motivate at all, or they are so huge that they bring only losses.

Judge for yourself: if a physician database haircut costs you 500 rubles, then 5% = 25 rubles. Will this amount motivate a potential client? Most likely, no. But at the same time, a discount of 30-50% is completely unreasonable. First, subtract the hairdresser's salary and the cost of the service - and what will be left in the end?

Sometimes owners try to cheat by deducting the discount amount from the specialist's salary. This approach will only cause discontent and conflict with the staff. Never do this! You need to build trusting and honest relationships with employees, think through the motivation system in such a way that their work for a percentage would be interesting to you as well.

Too high percentage of staff salaries

The balanced percentage of wages fluctuates in the range of 20-40% (excluding expenses). In this case, you can count on profit.

How are things really? Often experienced craftsmen work for completely inadequate remuneration: 70/30, 60/40, 50/50!

This state of affairs is completely unacceptable for one simple reason - it is unprofitable. Beauty salons with good revenue but meager income are common. Here, the masters earn more than the owner!

Reduction of product range

Reduction of product range

Source: shutterstock.com

During the low season, when attendance drops and turnover decreases, it is time to think about optimizing expenses. Unfortunately, most business owners try to reduce their expenses by reducing the range of related products. Their product lines become more modest - there are some products on the shelf, but there is nothing extra in the warehouse.

As soon as you cut the range, sales start to fall. A simple rule applies here - 20% of goods account for 80% of sales. As a result, sales of additional services decrease, and as a result, losses appear!

Excessive attention to clients

Clients always feel when you only want money from them, and if they notice this attitude from you, you can consider that you have already lost them.

You need to build calm, balanced relationships with the client - those that help increase sales. Under no circumstances should you show your anxiety, be nervous or panic, let alone demand anything.

Sometimes managers give instructions to call clients and offer them services very persistently. Not everyone will like such intrusiveness, but the worst thing is that it often becomes the reason for their loss.

Lack of quality service
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