Let’s talk about the proverbial elephant in the room: our economy is fairly hectic right now. No one, not even the most intelligent economists, seems to know what to expect from our country right now.
In the past couple of weeks, thousands of people have lost their jobs, had their lives turned upside down, and even lost funding for major projects. At first glance, this shouldn’t affect the tanning industry. After all, salons are private businesses, not federally-funded projects.
Yet, the turmoil we’re seeing federally can and will have an impact on every business—tanning included. With more families losing their paychecks comes more people tightening their belts, conserving money, and working to find new ways to save on money.
In other words, there’s a decent chance that your salon might lose customers during this time. Some of those customers may also be regulars who once used to splurge on add-ons. Depending on your area, this can be a major portion of your clientele.
Thankfully, there are ways to add a buffer to your profit margins and also give yourself an out. As a person who’s worked with the Slice Merchant Services team to learn about how a good merchant team can help you out.
#1: Get lower rates and more predictability.
Are you tired of having to wonder how much your merchant services will cost month after month? If you’re bracing yourself for major income fluctuations, you need to be able to estimate your overhead better.
Services like Slice payments got rid of merchant processing fees, turned terminal rentals into a flat-rate fee, and helped slice (get it) transaction fees fast. This gives salon owners like you a steadier, more predictable monthly bill for accepting credit card payments.
That alone can offer major peace of mind.
#2: Consider using merchant services to streamline and cut operating costs.
If there’s one thing I’ve learned to love about modern merchant services, it’s the new vanguard of payment terminals. Take Clover brand terminals, for example. They don’t just look good. They also are capable of running a slew of apps that you can pick and choose from on a private marketplace.
These apps can do a little bit of everything. So far, I’ve seen salons slash overhead costs by using apps that do the following right off their own terminals:
Employee Scheduling + Hour Tracking
Most salon owners already have software they use to track and schedule their employees. Clover has several apps that allow you to do that from your terminal and then send the finalized hours to your accountant.
This can save serious time and effort if you’ve had to do a bunch of after-hours work in order to keep track of your employees’ hours. They can simply sign on, sign off, and get their schedules sent to them right from the terminal. Neat, right?
Several apps cover these functions, including Homebase and Time Clock. So, you can work to find the app that best suits your workflow.
Tax And Payouts
It’s true. Terminals can now connect to everyone’s favorite accounting software, Quickbooks. (Others, such as Sage, are also available on the marketplace, too.) Trust me when I tell you that your accountant will thank you for this new, streamlined process.
Analytics
Did you ever wonder how your newest products are doing? Is that new red light machine working overtime? What about your new hydromassage station—should you get another? Analytics can help you see the real, hard numbers behind your sales.
Of course, analytics don’t just help you figure out what products and services sell. They also show you your hottest salon hours, help you predict future sales, and can even help you pinpoint if your trainee needs extra training.
If you’re dealing with heavy market fluctuations, analytics can also help you figure out where to tighten your belt first. For example, if the software shows that you have a new hire that just isn’t passing muster with sales, it may be time for a layoff paired with better hours for your all-star cast.
Customer Profile Tracking
To a point, customer profiles have become standard in tanning salons. If you don’t have this or have been paying extra for a separate customer tracking system software kit, transferring your records over to a Clover terminal’s app could help you decrease overhead.
Booking Software
If you’re a major spa in your town or city, you likely have moments when you can’t always fit all your clients into a service. This is true, even when you stick to basic tanning services. Unsurprisingly, this means that booking software is a must-have for most salons.
Clover has multiple booking software kits to choose from, including ones that allow your clients to book online and automatically alert you to new bookings. Best of all, some of those apps are free of charge.
#3: Choose a merchant services company that allows you to get a merchant cash advance if you want one.
Most retail companies and corporate financiers tend to have a bad opinion about merchant cash advances, also known as MCAs. They’re mostly known for having unusually high rate which can be difficult to repay with current overhead. However, it would be a lie to say they don’t have a good role to play in modern business.
Cash advances have several advantages—including the ability for you to use the money you get on anything you want. If your business doesn’t earn money, you don’t have to pay the advance back. Moreover, payments are reflective of your earnings, so it never squeezes you too hard.
Even so, most people are reticent to get one. As a person who has worked in finance, I understand that concern. You should never take out a loan or an advance without a lot of deep thought on the subject.
With that said, things happen. It’s good to work with a merchant services company that works as a one-stop shop for your financial needs.
Why Advances?
Advances can save companies during difficult times.
Over my time working with Slice Payments, I’ve seen people use advances as a way to “stay” their business while insurance money pays for destroyed interiors due to flooding, as a way to help launch a major salon-saving advertising campaign, and as a way to help replace vital equipment that would have been impossible to purchase otherwise.
Most other forms of funding have limits on how you can use those funds. Advances don’t. If you want to buy a bunch of uniforms for your staff, you can. If you need to pay a deep cleaning service or a plumber, you can. Advances work with you.
When Loans Say No
The big reason why I advise people to have a way to access a cash advance is simple: advances say yes when banks say no. The current government is mulling over canceling many grants, funds, and SBA loans.
If you are the beneficiary of a specialty loan from the federal government, you may need to have a backup plan. Advances, though not ideal, are a good place to start your alternative planning. Even if you never use an advance, it always is peaceful to have that option if you need it.
