TOP TIPS
TO SAVE YOUR SALON MONEY
With no immediate positive outlook for the South African economy, salon owners faced with rising prices are having to tighten their purse strings. Here we share some useful cost-cutting strategies
Photo by George Milton from Pexels
It’s easy to focus on the amount coming into your bank, but it’s extremely important to know what’s going out as well. “When prices go up, it’s time for a good old deep dive into your bank statements,” advises Hollie Power, co-founder of Salonology. “While we always want to keep a sharp focus on what’s coming into our banks and work on increasing that number, we can also take a good look at what’s going out.”
As much as your clients are providing you with business, you’re also providing the suppliers and the brands you use within your salon with business as well. Your relationship with product houses should be mutually beneficial.
“Despite prices rising, most companies still want your business and would be willing to renegotiate terms, interests and costs,” explains Power.
Taking the time to go through your statements can be daunting, especially if you’ve been avoiding looking at the numbers, but it’s important to know exactly what is going on.
“Allocate an afternoon, print your bank statements for the last 12 months and work through them, item by item,” suggests Power. “Can you rethink suppliers? Are you spending too much on last-minute orders when a more organised stock management system could avoid it?
“By knowing what is coming out, we can be more in control and more prepared for the months ahead.”
"INSTEAD OF CANCELLING SOME OF THE EXTR AS
you offer your clients to make their treatment feel a bit more luxe,
SEE IF YOU CAN MAKE CHANGES
so that you can
CONTINUE TO OFFER
them in a more
COST-EFFECTIVE WAY.
Get your team on board
Your team can help in more ways than just through marketing the business to clients.
“Make your team aware of how price hikes impact your business,” says Power, but she adds that the conversation doesn’t have to be a negative one.
“Instead of making ‘turn the lights off’ sound like a chore, make it a challenge. Create an eco-warrior mentality where the team are encouraged to recycle where they can, be aware of water and electricity usage and take responsibility for their own spaces,” she suggests.
“Crown a team member the ‘Eco Specialist’ and get them to take responsibility for staying on top of it in a fun and different way.”
Instead of cancelling some of the extras you offer your clients to make their treatment feel a bit more luxe, see if you can make changes so that you can continue to offer them in a more cost-effective way.
“I have heard salon owners declare that they’ll stop heating beds, using so many towels and serving luxury drinks in a bid to cut spend, but this could be an error,” explains Power.
“Clients come to us for the full luxury, professional experience, and it’s not an area we should scrimp on.”
Change, don’t stop
There are many alternatives you can look into to ensure that your clients are still receiving the luxury experience they know and love. “If you’re finding washing and tumble dryer costs are eating up your profits, look for a local laundry that will do it for less,” suggests Power. “Use hot water bottles rather than plug-in bed heaters.”
As a business owner you have access to offers and bulk buying options the public doesn’t have. “Bulk buy your tea and coffee extras from bulk wholesales that also provide cleaning supplies and other items that will be useful within your business,” concludes Power.