As this year is coming to a close it is important to review certain business stats in your salon business.
Most salon professionals don't exactly love stats and numbers. That's because you are people-oriented and service oriented; you like helping people, it's what you do.
But that doesn't mean you can skip assessing the annual business stats each year. This evaluation is important to help you be able to continue helping people and providing quality services.
So what stats should you be evaluating?
Revenue
All salon business owners should know what their annual revenue is. This is simply how much money you made over the past year.
Each year you should be tracking revenue so you can compare with previous years and determine if your business is growing or shrinking. If your sales numbers are not moving in the right direction then you will want to focus on how you can increase revenue next year. This may include adding more stations or enhancing your marketing to reach more potential clients.
Returning Clients
This is different than client satisfaction. Yes, in most cases clients who are satisfied will return for another visit; but sometimes clients are satisfied but still end up going somewhere else. This can happen for a variety of reasons like location, connections with friends and family, etc. But the goal of the salon should be to encourage clients to return.
Once you know the stats about the percentage of clients who return, you can develop a strategy to increase that number. One way to increase this number is to train your staff to re-book and connect with clients. This means booking follow-up appointments before the client leaves the salon or connecting with them via text or email after an appointment to set up a return visit.
Service Pricing
Look at your pricing alongside your revenue and bottom line, this is how you will determine if your business is profitable. Regularly review your prices and compare them to other salons. If you are not in the same ballpark as others in the industry then you are leaving money on the table.
Pricing depends on your market and ideal clients. So it is important to know your area and who you are selling to. Otherwise your pricing can be way off base.
There are more stats you can be evaluating but these are 3 of the main ones that you don't want to forget. Every business is different but if you focus on the basic measures and make adjustments as needed, you will be setting yourself up for success in the new year.
Want more business tips and encouragement? Get on my text list by texting ‘ADD ME' to 615-455-3297.
Remember to take care of yourself this month…holiday burnout can sneak up on you! I talked about this in last week's blog and if you missed it you can check it out HERE.
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