ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

10

description

 

Transcript of ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

Page 1: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make
Page 2: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

2

Copyright © 2013 ProfitableStylist.com. All rights reserved.

A decade ago industry experts predicted that it was only a fad…a trend that would be over in 18 months. Today it’s a booming global trend and one of the fastest growing services in the professional beauty industry…exploding at a growth rate of 40% year after year1. The number of U.S. salons offering them has risen 28.5% in the past 2 years.

They are hair extensions. Salons from Boston to LA have dramatically increased their profitability with this one service alone…in fact, Alexander Maud, a stylist at Mizu Salon in Boston, says he charges $2,500 to $4,000 for a full head of extensions. His clients can spend more than $1,000 on hair alone, he added.

BUT…Something isn’t working Scores of salon owners & managers alike have turned to this service to not only increase profits, but also to provide a truly transformational experience for clients suffering from thinning hair or lack of density. They source out an extension manufacturer, get started…and then…nothing. The vast majority of salons only meet with mediocre success…1 to 2 clients a month (if that)…even though the demand and opportunity is huge…something is preventing them from being successful. So what are salons like Mizu doing that many salons aren’t? What secrets do they know that many extensionists…hungry for more business do not? That’s what we wanted to know…

WHO ARE WE ANYWAY? The ProfitableStylist.com was founded by a team of salon owners and stylists to investigate the challenges facing salons today, share our findings and offer the secrets successful salons use to build their business. For us, mediocre business is not enough. We are always looking to learn what other salons are doing far and wide to grow their business, make clients happier or simply to make the business of beauty…easier. And since there are always forces outside of our business looking to diminish what we do, deregulate it or drive our clients to departments stores and supermarkets…we feel strongly in sharing this information with you. No purchase necessary, nothing in return, no hidden agenda.

                                                            1 Professional Beauty Association 2013 Report 

Page 3: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

3

Copyright © 2013 ProfitableStylist.com. All rights reserved.

The Report Through trial and error, tests within our own businesses and in interviewing salon owners and stylists across the country…we uncovered the surprising, shocking and yet…oh so simple critical mistakes we (and probably you) have made with their extension business.

Mistake #1: Not Displaying Your Certificate This first one might seem like common sense, but many stylists complete their training, get their certificate and then just tuck it in a drawer and wait for business to stroll in the door.

Problem: If you were going to a dentist or a new doctor and you didn’t see the usual credentials all over the place…it would give you cause for concern. With certain procedures (especially ones we are new to) we take comfort in seeing tangible evidence of someone’s training and knowledge. We may still be a little leery, but a lot less so if we see evidence that we’re in good hands. The same is true for hair extensions. Done correctly they can stunning and impossible to differentiate from the real thing. Done poorly and you can cause serious damage to the client’s hair.

WHAT TO DO ABOUT IT? Get it out of the drawer…put in a nice frame and show off your training! As an added benefit it can also serve as a conversation starter to clients new to extensions.

Mistake #2: Not using your marketing tools Ever year scores of hair extension manufacturers spend loads of money to promote their products and attract new customers. From tent cards to posters and t-shirts…many of these resources sit on warehouse shelves or end up gathering dust in your color room.

Page 4: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

4

Copyright © 2013 ProfitableStylist.com. All rights reserved.

Problem: Just because it's on the salon menu, doesn't mean the client knows you offer it. Often times, busy menus can be confusing...and longtime customers probably haven't picked one up in years. You also can’t rely on clients discovering your service by seeing it an e-newsletter or on the front desk person mentioning the offer.

WHAT TO DO ABOUT IT? The moment the client is most receptive is when they walk in the door. At that point, your decals on doors and windows and posters throughout the salon can do the subtle talking. Anything you do after this point is starting the conversation with a client already warmed up to the idea. Make use of the marketing tools your manufacturer provides you…and if they haven’t…pick up the phone and ask for them. If they don’t have any tools to offer you…head for the hills. They’re essentially taking your money and not offering you what you need to be successful with what they’re selling you.

Mistake #3: Not using your phone There are two schools of thought when it comes to phones in salons: having an on hold queue…or making sure you have enough phones and people who can answer them for when it gets busy. Regardless of what side of the fence you are on, there is an opportunity that almost everyone misses out on.

Problem: Just as open a client is when they are in your chair to learning about a new product or service…they are just as open at the initial point of booking. If you’re a salon with an on hold phone queue system…chances are your clients are thinking, “this music is awful”…as opposed to, “gee…I didn’t know they offer that”.

WHAT TO DO ABOUT IT? There are loads of companies who offer on-hold messaging and voicemail recording to share new products, services, events or offers. Ditch the music and let people know what’s new. Just make sure you re-record it monthly so by the time the client is calling to rebook they’re not hearing the same outdated message. If you’re of the mind that someone should pick up the phone immediately when they dial you…make sure the front desk person takes the time to share the same information about what is new or upsell a client and increase their service ticket.

Page 5: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

5

Copyright © 2013 ProfitableStylist.com. All rights reserved.

Mistake #4: Not Practicing What You Preach If you were going to treat yourself to an expensive suit or a designer dress and you walked into a high end store and were greeted by a sales person who was wearing clothes best suited for camping…chances are you wouldn’t take their recommendations seriously. Whether we admit it or not, we buy from sales people who suit the offering.

Problem: Clients come to you because they believe you are an authority in beauty. There is an expectation on us for us to look our best…great hair, great color. Surprisingly the vast majority of extensionists don’t even wear hair extensions. We don’t buy from people who don’t fit the part. You wouldn’t trust a dentist with bad teeth.

WHAT TO DO ABOUT IT? Wear the extensions! Even if you don’t want to wear them all the time, do a marketing campaign to push your extensions each quarter and get the whole staff of the salon to look their best with incredible looking extensions…even the front desk person. The more dramatic the change, the better the results you will have. The enthusiasm will be infectious and it’ll start the conversation with new and existing clients. If you don’t have anyone that can go short to long, use extensions for highlights, lowlights, or fantasy strands. Make sure to photograph before and after to share this transformation with clients!

MISTAKE #5: GOING TOO BIG (and going bust) In our experience and in speaking with extensionists across the country, we learned that many eager stylists pop for a full head application with clients to make their money back as fast as possible. However, this often causes a few problems:

PROBLEM 1: The price tag, application time and commitment scare away most clients new to extensions.

PROBLEM 2: Assuming they would be doing more full head applications, extensionists sit on a huge back inventory of hair...tying up their money until they sell

Page 6: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

6

Copyright © 2013 ProfitableStylist.com. All rights reserved.

the service. Think about when you got your first car...if a sales guy had tried to push a Porsche on you...what would you have done?

WHAT TO DO ABOUT IT? Think small…NOT big. This may sound counterintuitive, but the real opportunity with extensions isn’t for a full head application, but in adding nuances to complement their look or enhance their style. Extensions aren’t just for creating big fashion and runway hair, but can be used for highlighting, lowlighting or thickening…or even just to give clients a break in between a series of heavy duty color services to allow the hair time to recover. Don’t pitch a Porsche to a newbie…ease them in by offering 10 to 30 strands or even just 2 to 3 fantasy strands to offer a little unexpected flair for the season. You’re less likely to scare them off…and more likely to land a new long term extension user.

Mistake #6: Being Out of Stock Because of the overhead involved in inventory, many salons don’t keep hair extensions in stock and order it only as needed to fill the need for the booked appointments. This poses a huge challenge:

Problem: We live in a fast paced world where, as consumers, when we want it…we want it immediately. How often do you have to turn away a walk-in never to see them again? Although you may not have dollars tied up in extension inventory…how much revenue are you missing out on for not being able to service clients that buy on impulse? Or, clients that could be upsold in the chair during their regular appointment by adding in a few highlights, lowlights or fantasy strands?

WHAT TO DO ABOUT IT?

Determine the most popular shades you frequently use and at the very least ensure you keep some on hand to be able to service a client on a whim. Many manufacturers or distributors will have special discounted packages to allow you to purchase 100 strands or so of hair to do highlights, lowlights or fantasy colors at a big savings.

Page 7: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

7

Copyright © 2013 ProfitableStylist.com. All rights reserved.

Mistake #7: NOT HAVING A PORTFOLIO All too often the waiting area at any salon is usually filled with magazines. It’s great to have reading material, however the waiting area is the most important space in the salon to introduce a client to new products and services…and it’s rarely used to its full potential.

Problem: Beauty is visual. The very first thing a new client will do before walking in the door to the salon is look you up on the Internet and on social media. If all they find is a Yellow Pages listing or a CitySearch listing how can they really see the caliber of work that you do? Hair extensions also come with a misconception: that they are only for creating big fashion hair…not for increased density, bangs, ponytails, or even just a simple color change. Misconceptions can only be shattered by showing the reality.

WHAT TO DO ABOUT IT?

Ditch the people magazine and create a scapbook and portfolio of your work and really give clients something interesting to look at. Part of the power of this service is the amazing instant transformation. Creating a portfolio with stunning before and after pictures gives potential extension clients a chance to see your work. You should always take pictures of every extension client. Best of all, you can share them on Facebook and run a contest to have your clients vote on the best transformation to reward that client with a special prize.

Mistake #8: Relying only on Passive Marketing This is the single biggest mistake that virtually all small business owners make initially. It used to be the case that location was everything…and, provided that you had a client base, opened up in a highly trafficked area…business would literally stroll in the door.

Problem: Today competition is everywhere and you can’t rely on clients stumbling in the door by accident or word of mouth alone anymore. Additionally, you can’t just assume that existing clients are going to continue to rebook or even try new products and services on their own without engaging them in any way.

Page 8: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

8

Copyright © 2013 ProfitableStylist.com. All rights reserved.

WHAT TO DO ABOUT IT?

Active marketing involves an ongoing and active plan to attract new business, but also to cross promote and upsell to existing clients as well. Email campaigns, leveraging Facebook, Twitter and LinkedIn are very inexpensive and require only your time to plan and execute them…just make sure you do them regularly. You can also use direct mail, TV and Radio commercials, newspaper ads, and other print media. Although, these strategies can be costly, so make sure you track the results by asking during each consultation appointment, “How did you hear about us?”

Mistake #9: NOT KEEPING UP WITH EDUCATION If everything we ever needed to learn, we learned all at once and then never have to learn again... that would be great, but it’s also not realistic. Staying “in the know” is critical to remaining on the cutting edge and relevant as a stylist in the evolving world of beauty.

Problem: Our industry is always evolving, changing with new cuts, technologies and trends coming constantly. If you don’t keep up you get left behind. When we first started with extensions so many years ago the process was time consuming, they didn’t stay in that long and there were only a few colors and textures to choose from. Today extensions have come a long way and newer products, bonding methods and wearability choices broaden the potential client base and ensure satisfaction. But if you don’t know about it…you can’t offer it.

WHAT TO DO ABOUT IT?

READ, LISTEN, WATCH and GO READ trade magazines and personal development books. LISTEN to CD’s that are educational and motivational. WATCH DVD’s on business building, new techniques and self-help. GO to hair shows. Small, local vendor shows are good, but plan to go to at least one large hair show every year. You can try out different ones each year.

Page 9: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

9

Copyright © 2013 ProfitableStylist.com. All rights reserved.

Mistake #10: NOT DOING REGULAR EVENTS Department stores wrote the book on merchandising and marketing to consumers. Long ago they realized that we get bored very quickly of seeing the same thing during multiple visits…so they invented the concept of special events and merchandising on a regular basis to ensure ongoing activities to keep new clients discovering their products and keep existing shoppers coming back frequently to see what’s new. Many salon owners haven’t embraced these same fundamentals.

Problem: The same things department store owners learned a century ago still apply to our business. Our customers get bored of the same old, same old and though we may do a great job dressing up the salon and offering special promos and gifts throughout the season…not going the extra mile to plan ongoing in-salon events is a missed opportunity to bring in new clientele.

WHAT TO DO ABOUT IT?

If you don’t plan a launch event every time you launch a new product or service…DO. But this first big event doesn’t have to be the end of it. A few times a year plan a hair extension night to VIP clients and make an event of it! Share a little bit of the process, demonstrate on a model, have some food and drinks and book some appointments! If you really want to use the event to kickstart a marketing campaign, use it to kick start your participation in a charity event. Many manufacturers run their own charity events yearly and you can increase your own exposure by jumping on board their campaign and promoting the message locally.

EXCLUSIVE OFFER We’ve negotiated a special package exclusive to ProfitableStylist.com readers from She by SO.CAP.USA! SHE by So.Cap.USA is a world leader and one of the largest producers of add-on hair. In other articles we share our in-depth reviews of some of the major manufacturers out there…and of all of them we tested in salon the only two brands that lasted and still great weeks in were Great Lengths & She by SO.CAP.USA. Of the two however, She by SO.CAP.USA has much more variety in terms of array of lengths, textures, colors and wearability options than Great Lengths (and are less prone to backorder issues that seem to plague Great Lengths).

Page 10: ProfitableStylist.com - Top 10 Critical Mistakes Salon Make

        

 

Page

10

Copyright © 2013 ProfitableStylist.com. All rights reserved.

PRESIDENTS’ CERTIFICATION PACKAGE: Only $795

She by SO.CAP.USA president Antonio DiBiase is bringing to the U.S.A. the Hair Extension Certification that introduced 15,000 European salons to the art of hair extensions. We’ve arranged a special price for any salon to get started with one of the most profitable new salon services for only $795! You’ll learn & MASTER add-on hair offerings for every possible client: from clip-in bangs & ponytails, full head application, re-usable extensives, and single strand image altering using She by SO.CAP.USA’s line of hair extensions.

PRESIDENTS' CERTIFICATION PACKAGE: This exclusive offering includes everything you need to get started...at a fraction of the regular cost. Includes: >> FREE She by SO.CAP.USA Certification for 1 person (held at a host salon in Louisiana) >> Firex Warm Fusion Hair Extension Machine >> Hands On Kit of Extensions for Training

Price: $795.00 Save $1,000 + Get Certified for Free! Just call us at (800) 428-8788 Or visit profitablestylist.com/offers to purchase securely online via our website!

91 colors 3 Lengths 3 Textures