Happy New Year!
As we all gear up for our favorite time of year, I want to offer a basic salon business concept that when successfully executed, will dramatically increase your revenue. This will sound like a no-brainer – but take a step back and ask yourself, “Am I already doing everything I possibly can to achieve this?” If your answer is “no”, I offer some ways that will help you make this happen:
Increase your customer count.
I am sure you just read this and thought, “Well, duh!” But let’s face it, a lot of salons are not doing everything they can to make this goal a reality. So let’s dig right into what you can do TODAY to start adding names to your database and cash to your drawer.
We know that the customer per year average is around $125. You probably look at this and think there is no way – that’s so low. This number is an average of unique customers, so not only those who came in and used a “free tan” card one time, but also those who are your year-round big spenders. To calculate your PTA (per tanner average), take the annual revenue total and divide that by the number of unique customers in the same year. EXAMPLE: Lisa’s Tanning Salon saw 3,000 unique customers and did $375,000 in sales for 2023 – an average of $125 PCA. Now, for 2024, Lisa has a revenue goal of $450,000. Using that same PCA, she would have to increase her unique customer count by 600. So how is she going to do that? To make that jump, she needs to average about 50 new customers per month.
When successfully executed, this basic business concept will dramatically increase your revenue.
This is where some outside-of-the-box thinking comes in. Do you have free tan cards for your staff to give out? The best ones give new customers a week of free services. Even better, have your employees write their name on the card as the “referred by” and if that new customer purchases an EFT membership or package, the referring employee earns a commission. That should give them the incentive they need to hand out those cards!
Another program I love is “Friends Tan Free!” or some call it the “Buddy Pass.” This is designed for your tanners with the highest membership level. When they come in to tan, they can bring a friend to tan for free (in a base level bed). Not only does this give your top-tier tanners a reason to keep their package, but their “buddy” will obviously need lotion and eyewear and eventually want to start coming in on their own and not around the schedule of their member friend; this will encourage them to purchase a package.
How about reaching people new to your area? This is one of the easiest (passive) ways to gain customers. Are there apartments near your salon? Partner with the management by asking if you can include a “Free Week of Tanning” card in their new resident move-in welcome kit. This would also work for local nail salons, hair salons, gyms, etc. When residents sign up for services at these other businesses, they can get a week of free tanning with you. The bonus: It gives you that week to convert the trial customer into a member.
These things are simple when viewed as a whole. But without preparation and execution, they will not happen. If you want to increase revenue in your salon, take the simple approach and make sure you are doing everything you can each day to reach this goal.
There is no better time than the New Year to move forward and upward!
