Not on my shift!
This is going to polarise you. You’ll either read this and think, ‘Yeah that happens in my salon too’. Or you’ll think, ‘How on earth could any salon owner let that happen?’.
I’m the latter of the two, but I understand how it happens and I am amazed how prevalent it is. So what am I talking about? Two things…
Salon staff discounting prices of services at a whim from what is displayed on the salon price list.
No, No, No! Not on my shift! That should never happen… but you would be amazed how often it does.
As a salon owner, hopefully you have worked out what you need to charge for the services you offer based on what it realistically costs to run your business and make a profit. [If you haven’t then we need to talk].
Then, I’m equally sure that you have assessed what the ‘going rate’ is in your city to ensure that you are market competitive and have then come up with a price list that you feel is going to allow you to run a profitable business and meet all of your operating costs at the same time.
Feeding the beast…
If you are like most salons out there, your salon is a finely tuned beast that is balanced between making a profit or running at a loss. Most salons survive on very small profit margins if any.
So here’s the thing, no one except the owner, or someone he/she designates responsibility to has the right to discount or alter the prices of the salon services.
Who do stylists think they are to discount or undercharge or over-service or throw in a freebie because they think it’s a good idea. Or they think that ‘their’ clients cant afford it or wouldn’t pay it. It’s not their business, they’re not paying the bills or servicing the loan or working 60+ hours a week!
How would they respond if you decided to discount their wages just because you felt like it. I think the response would be a resounding “No you don’t!” To put it mildly.
The second thing is salon owners that let clients leave without paying on the basis that you can invoice them so they can pay online! No, No, and No again! Not on my watch.
Every salon owner I have ever met that lets clients pay on invoice ends up with another job of bookkeeping and chasing up clients who conveniently forget to pay until they are due back again. And then, if you are lucky they will pay or sometimes they will just go else where. It will reek havoc with your cashflow!
At best, salons are a low profit margin business, you don’t have the time or the resources to start invoicing and then chasing up clients for payment, and if you do it, you’re mad!
One of the best advantages of the salon business is that there is good cash flow. Take that away and you really are setting yourself up for a kicking!
Thank you for watching…
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Have a great week!