Between inflation, constant competition, and a global pandemic that forced people to take hair and grooming into their own hands, you may feel your hair salon or barber business requires a financial boost. It’s never too late to reassess the current state of your business and tweak it to generate more revenue.
Start by reviewing your books with a fine-tooth comb and take account of your incoming revenue and all overhead costs. You must leave no stone unturned to clearly understand how much money you can invest to make your business even more successful. Once you’ve checked that off your list, try implementing the following tactics so you see green — not red.
1. Reduce Your Overhead
Before anything else, see if there’s anywhere where you can trim your overhead. Any unnecessary cost that’s eating into your profit margin has to go. Shop around for the best prices for fixed costs such as insurance, phone, and energy bills.
2. Boost Your Retail Lineup
Next to service, retail products are the cornerstone of hair salons or barbershops. On average, approximately 5% of your revenue stream should come from retail sales. To ensure you’re hitting or exceeding this percentage, set a goal and train staff on how you can achieve it together. Provide incentives to help keep them motivated and excited about the products.
While you’ll likely have professional use-only products at your station, retail products are a surefire way to increase revenue. One of the easiest ways to educate a client on a shampoo and conditioner, skincare, or haircare like sprays and mousses is to use it on them during the styling or grooming process. Barbershop revenue can be about tools, too, so don’t eliminate that part of your stock if necessary.
Be sure only to order what you need monthly so you’re not negatively affecting your cash flow. Have a solid inventory system to account for what’s sold, stolen (unfortunately), or used as samples or at the stations.
As crucial as the brands and products you’re choosing, how you display them. Invest in quality, attractive shelving and displays with efficient lighting. Refresh them regularly and make sure they look streamlined. To keep clients enticed, work with suppliers on providing materials, informational handouts, gifts, etc.
3. Add an Aesthetic Display for Impulse Buys
While we’re on the topic of salon retail displays, let’s talk about POP — point of purchase. They’re a great opportunity to easily exhibit “grab and go” products like travel-sized styling products and skincare, hand lotion, and nail clippers — anything goes (barbershop revenue included) as long as it suits your business.
4. Offer Gift Cards
Consider offering gift cards if they’re not already a part of your retail offerings. GCs are an extremely straightforward and convenient year-round gift idea that helps promote your business and (hopefully) gain some new clients. While they offer advanced financial support, be sure to set aside sufficient funds until purchased cards are redeemed.
5. Utilize Social Media
Having a business in this day in age means you need to harness the power of social media for marketing and networking purposes as well as the reputation and visibility of your business. Start by using free platforms such as Instagram and TikTok to produce unique, engaging content that not only puts your business on the map but also validates that you’re a trusted authority in the industry.
6. Partner With Local Businesses
We’re not suggesting you partner up with your local competition. Instead, connect with like-minded businesses in your community to create a win-win situation. Perhaps you own a salon or barbershop that doesn’t offer skin services and vice versa. By working together, you’re enhancing the client experience while helping one another fill a void service and revenue-wise.
7. Hold a Client Appreciation Event
Work with your vendors, trainers, and suppliers to host a client appreciation event (allow room for extra guests for potential expansion) to help introduce new services and products (and your excellent staff, of course) available at your salon or barber shop.
It’s another excellent opportunity to partner with non-related local businesses in your community to amp up your fete in food, beverage, swag bags, and more.
8. Stay Relevant
Staying relevant is vital, so remain conscious of communicating with your clientele about services that have the potential to be in demand on your menu of offerings. Head to industry events, start subscribing to trade magazines and facilitate your market research to see what’s currently drawing in customers. Keep diversity in mind as well.
Increasing revenue is all about strategy and being smart about your investments. It also takes hard work and dedication. ProStylingTools is here to help you take your business to the next level. Check out our entire collection of tools, products, furniture, and supplies.