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5 Cost Saving Tips for Growing Beauty Salons

21 November 2019 | 0 comments | Posted by Carol Trehearn in Beauty Basics

Reduce cost at beauty salon

Perhaps you’ve made every calculable effort to increase your sales, but you still aren’t seeing the profits you were hoping for at the end of each month. Maybe you’ve taken a look at your monthly expenses and found that some of them are way too high.

Regardless of what it is, it can be challenging to cut costs without impacting on the quality of your service. Cost reductions are especially true in the beauty industry, where customers expect to treatment with top-notch products and world-class service.

Fortunately, there’s a good chance that you can make some savings that will positively impact your bottom line - without impacting the customer experience.

Here are five factors to consider looking into and reduce expenses.

1. No-Shows

If you’re not keeping track of no-shows and identifying ways to reduce them, it could be costing you a lot of money. Finding out why customers are not showing up can help you put the right strategies in place to make sure it doesn’t happen. For instance, you can set up appointment reminders or reconsider the terms of your deposit policy.

2. Energy expenses

Water and electricity likely make up a significant portion of your monthly expenses. Finding ways to become more efficient in both aspects is a worthwhile endeavour. It can be as simple as switching old lighting for LEDs or investing in Energy Star-rated equipment.

You should also reconsider who you’re paying to keep the lights on. Use a website such as a utility Bidder to find a more affordable supplier and save on energy bills.

3. Vouchers

A simple but common mistake made by beauty salons is to log unclaimed vouchers in their sales figures. In doing so, you’ll end up paying VAT on a service you didn’t provide. Consult your accountant and make sure they know that there’s no VAT on vouchers until they’re redeemed.

4. Marketing

Another mistake that’s especially common among newer beauty salons is to splurge on marketing channels such as radio, television and billboards. The reality is that these traditional methods pale in comparison to the return on investment you can get from digital marketing. There are many ways to market your salon on the internet without spending money at all.

For instance, you can establish your salon on Google my Business and Google Maps so that it’s more visible to your prospects. You can also get started with a free website and use social media to expand your reach further and improve customer relations.

5. Stock

It’s essential to strike a balance between avoiding wastage and not skimping on how much product you use to treat a client. Use too much, and you’re merely pouring money down the drain. Too little will result in an unhappy client who wants you to do the job again. Remember to buy strategically, as the higher your stock figure, the more tax you pay.

Produce at a profit

Take the time to look into these factors and find ways to save. Don’t forget to set a monthly budget and monitor your expenses to see how you can stretch your money further. Paying attention to your finances will go a long way in helping you run a more successful beauty salon.

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Recommended reading

If you enjoyed this post and have time to spare why not check out these related posts and dive deeper down the rabbit hole that is beauty and grooming tips.

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