Rank #1: 31. How to set Targets for your Salon Team
Average bill - Average bill or average ticket value is one of the most important key performance indicators or KPI’s in your Salon. An average bill covers an awful lot, so if you can see that someone’s average bill is very low, there are parts of her job that she’s just not doing. An average bill that’s on the increase indicates somebody who’s taking retail seriously or that’s also very good at selling additional products or services when somebody comes in to your Salon. So you want to see a nice high average bill, set a benchmark for the level that the person is at in their career and also monitor it over time.
Retention - I think client count is slightly old fashioned and what I’m more interested in is retention for this reason; I can increase your client count by promotional activity and I will see a bump in the number of customers that come into the Salon. The retention rate shows me how pleased my customers are with the Stylists or Therapists performance, so that’s what I’m interested in. If you’re starting to see retention on the slide, you need to intervene really quickly because somebody with very low retention is not an asset to your business.
Utilisation - This is how busy a person is, how much of the day that you’re paying them for are they actually occupied making you money. The reason we look at utilisation is because your marketing activity has a huge impact on utilisation of your team, but it may not be impacting on the average bill. Utilisation can be impacted purely by the marketing spend that you’re putting into your business. So we monitor the utilisation, if you’ve got somebody who has continually low utilisation despite your marketing efforts, again perhaps you need to address that in a slightly more aggressive way, it may even be that it’s time to move that person on.
In my Salon we have two bench marks for utilisation; we have an eighty percent target utilisation. Below sixty percent we have what is called an intervention. If there’s still a problem with utilisation after six weeks of intervention, we would start looking at your contract and potentially reducing your hours in a hope to increase that utilisation number.
I hope that’s been useful to you, if you’ve got something that you’d like to add either pop it in the comments below or head over to the Build Your Salon Facebook page where I would love to hear from you. I hope you’ve already subscribed, if you haven’t hit subscribe now. I have a video and a podcast out like this every single Monday, and I would hate you to miss out on the content that I share with you in the future. Until next week, take care.
Oct 10 2016
Rank #2: How to improve salon retail - if you're starting with ZERO!
Mar 21 2018
Rank #3: 23. How to say goodbye - firings and resignations in your salon
1. When a member of your team is not hitting the required Salon standards. You should also have in place a capability procedure and also a disciplinary procedure.
2. When they quit. To get to the stage where they’re actually resigning from a position, is a big mental process for an employee and when they’ve got to that stage, it’s too late.
3. It becomes all about the money. Pay your staff as much as you can possibly afford and then the conversation when they’re asking for extra pay rise is very short indeed.
So there are four golden rules for when we’re dealing with employees resigning or us terminating their employment:
1. We are never surprised. I will not take a meeting unless I know what’s on the agenda. That gives me a chance to be prepared, to start planning ahead so you are fully prepared and fully armed.
2. You must have a plan; you should have an ideal termination date in place, before meeting with the employee, you should have a plan on what you’re going to be telling all of their clients, you should have a marketing plan and you should also have an overall team plan.
3. The meeting. When it’s time to say goodbye it’s much better if you get it over and done with.
4. The termination date. The second somebody resigns from your employment they are gone from the premises. There is one exception and that is if someone is literally leaving the country.
I hope that’s been useful to you, if it has don’t forget to subscribe to this channel and I will see you again next Monday. Take care.
Aug 15 2016
Rank #4: Are you making these mistakes with your salon team targets?
I believe that sitting down with Team Members at least every month (and ideally every week) to report back to them on their performance, to set them a meaningful target and coaching them to achieve that target is the only way to longer-term success. People get overwhelmed unnecessarily by the entire performance management process.
May 15 2018
Rank #5: 45. The most important measure for salon success
Hello and welcome, and it’s that time of the year again. I thought it was good timing for me to share what I think is the one most important measure for measuring the success of a member of your team.
The one measure that I’m going to share with you today that I think is vital, is called utilisation. Essentially how busy one member of your team is. Some Salon coaches around the world, will say that the average bill is the most important measure, and I don’t think that’s correct. We’ve had turn our marketing into a machine for a successful Salon, and that involves running promotions, discounts or a loyalty programme. So, average bill will look a little bit more negative, utilisation will show us how busy somebody is.
The other measure is the amount of money they’re putting in the till. Your service total or your service and retail total, isn’t necessarily a great measure of how brilliant a Stylist or Therapist is. The other problem with using service and retail totals, is that when someone goes on holiday, it hits they’re totals hard. Utilisation takes that into account, because what we’re measuring how many hours were utilised putting money in the till.
Now what I would like you to do is figure out what the consequences of somebody not hitting a target is. In my Salon, we have a target of eighty percent utilisation. If your utilisation drops below seventy percent, we start having weekly marketing meetings. If your utilisation drops below sixty percent I will be reducing the hours that you are contracted for, two hours come off your contracted hours.
If somebody is a brand-new starter, I build in a target for them to move up. I would give them three months to hit target utilisation, if they’re brand new you have six months to hit those targets. If they’re not hitting those targets, we reserve the right to terminate your employment in that instance. That’s the consequence that I have in my Salon, and it’s important that you have those consequences build in.
I hope that’s been useful to you, it will be more useful if you build in the consequences in. If you’ve enjoyed the video, then please don’t forget to subscribe. I do a broadcast like this every single week and I would hate you to miss out on the content that I’m sharing. If you’ve already subscribed I will see you again next week. Take care.
Jan 31 2017
Rank #6: 47. If you own a salon, pay yourself properly!
Disclaimer: I do not make any guarantees about your ability to get results or earn any money with my ideas, information, tools or strategies. I do not offer any legal, medical, tax or other professional advice. Do not make any decisions based on any information presented in this broadcast without understanding that making any change in your business or personal life is accompanied by the risk of hardship or significant losses. Seek advice from trusted, qualified professionals before attempting any lifestyle change or business or financial endeavour. Check with your indemnified professional advisor before acting on this or any information. Continuing with this broadcast indicates your agreement that you will not to attempt to hold us liable for your decisions, actions or results, at any time, under any circumstance.
Find our more about the "Get Paid Properly" programme here: http://bit.ly/2n1O8O4
My live event details are here: https://yourdigitalsalon.eventbrite.co.uk
Apr 04 2017
Rank #7: Salon Team Meetings 101
Why hold salon team meetings at all?
In every salon, there is an agenda. A set of goals and objectives that every salon team is striving for. Problem is, if you're not communicating the agenda, not moving your team towards the salon goals, the team will set their own agenda.
I'm lucky. I get to see inside lots of salons. To see how they tick. What works, and what doesn't. Right now I'm seeing a lot of salons who could be getting much better results from their teams, if only they would coach and direct them.
Salons everywhere invest hundreds, if not thousands in the development of their teams every year. And a lot of salons waste their money. Follow the SIMPLEST way to be the salon manager your team deserves. Improve your team's performance and be clear about what you want them to achieve. Check out Team Performance Upgrade here: https://training.buildyoursalon.com/tpu
Dec 04 2017
Rank #8: 34. Slow down and honour your craft
This week my message to you is that I’d like you to slow down, take a bit more time. I’ve seen a very distressing trend in Salons over the last few years and we’re getting addicted to express services, we’re getting addicted to these little nuggets of service that we’re passing onto clients at a very low cost, and banging them out at a very rapid rate. Now I’m not suggesting that we get rid of all express services, they are what I see as a profit maximizer, so they’re an add-on; they’re a filling for those little gaps that you get during your day in your column. They shouldn’t be something that we rely on day in and day out and this is what’s happening.
So I want you to ask yourself when you’re doing an express service, is this the very best job that you could do for that client? If she’s having an express service, have you got all the time that you need to pass on the information and aftercare advice that you need to. In an express service have you got time to make her feel special, I don’t think you have. The danger I think over time is that we’re not paying attention to our craft anymore. What we’re not doing is actually the best job that we can to impress people, with the experience that they can get.
I’d like you to pay attention to what’s going on in the barbering Industry, because barbering has had a massive resurgence over the last two to three years and it doesn’t look like it’s slowing down anytime soon either. Now this massive resurgence that’s happening in barbering isn’t happening off the back of very quick clipper cuts, it’s not even happening off the back of cheap services. It’s happening off the back of people paying into their craft, so they’re retraining in ancient barbering techniques, in excellent cutting skills, and they’re pushing out higher priced service in many instances to a much bigger audience and the audience is absolutely lapping it up.
I think we could be transferring that into the hair and beauty industry as well. I think we need to pay attention to our craft, pay into the training, keep developing yourself and your team so that you’re skills are absolutely fantastic. The other thing that I think is missing particularly in Hairdressing is there’s no history, there’s no culture, with a lot of Stylist anymore. Go back, have a look at the people that formed our Industry and turned it into the trade that we’re applying today. So slow down and start moving away from the express services, push the experience, build your training, and build your craft.
I hope that’s been useful to you, if it has don’t forget to subscribe. I do a video like this actually maybe not quite like this every Monday, and I would hate you to miss out on the content that I’m sharing. Until then take care.
Oct 31 2016
Rank #9: Boost your salon profits with tiered pricing
Most salon owners don't see the value in tiered pricing. To be blunt, this is why some of these businesses fail. You have to remember that a big part of running the business you deserve, is generating the profits you deserve. You have to consistently revisit your pricing structure. And see if you're leaving money on the table. While you create an environment where employees strive for something more.
Tiered pricing isn't just about gaining the profits your business deserves. It is also about being able to carefully provide recognition to your employees who are excelling. You are also able to provide loyal employees with incentives that will continue to motivate them into providing good services. Additionally, it also addresses the injustice that high performing employees may feel when they charge the same rate as less experienced employees.
Show your employees that you have a clear vision for them. That you want them to progress in this industry. It will work wonders for a growing business!
Here I want to give you the top 3 reasons why I think you should be introducing tiered pricing into your hair or beauty salon.
Jul 31 2018
Rank #10: Why Small Businesses Fail
Jul 02 2018
Rank #11: Staying Motivated when You're the Boss
Motivation is one of the key aspects of succeeding in any kind of business. However, there may be instances that you may find it hard staying motivated. As a business owner it's only normal for you to face different challenges on a daily basis. This makes it even harder to stay energised and motivated. We've all had that experience where we lose focus due to the obstacles we're facing.
Remember how it used to be?
Do you remember all that energy you had when you were starting out? That feeling of restlessness and excitement all packed in one? And how you felt a surge of motivation going through you as if you're never going to get demotivated. In the beginning, it's only natural for you to be focused on growing your business. You were able to accomplish a lot of things at a very limited time. Results were fast. However, after being able to successfully stabilise the business, many encounter the problem of staying motivated.
To be blunt, as an entrepreneur, it's important that you seek out motivation on a daily basis. You need to constantly look for things and people that will inspire you. Staying motivated as a business owner will not only help you become successful, it'll also help you grow your team. In short, you have to keep at it against all odds.
In this video, I give you about 3 things you can do to stay motivated as a business owner. What's more, not only will these tips help you become motivated but will also help you power through tough situations.
Aug 07 2018
Rank #12: Do you need to delegate more in your salon business?
Apr 24 2018
Rank #13: 21. How To Move From GUILT To GRATITUDE - Podcast
Guilt comes in three forms; guilt for the things that we’ve done in the past, guilt for our current position and guilt for our potential future circumstance.
When we’re looking at guilt in the past, remember we've all made mistakes. The things I got wrong in the past were the best I could do at the time, I wasn’t out to hurt people deliberately. So how do we move on from that guilt? You find someone that trusts and loves you unconditionally, and you talk it through. They will forgive you - then it’s time that you forgive yourself.
Guilt in our current situation is why we hide away our success, we shield others from how well we’re doing, and it’s a misspent guilt. You are completely limiting your potential if you have those feelings around your potential success.
It’s your duty and obligation to feel gratitude for the situation you’re in, for the freedom and options you have to alter your future, and to maximise your potential. If you’re in a position to change your life it is your duty to make sure you’re doing your absolute best to succeed.
I found a really simple technique, which is at the end of each day just write in the bottom of your diary three things that you’re grateful for. Scientifically you’re reinforcing a positive feeling rather than dwelling in that guilty place.
I hope that’s been really useful to you, if it has please click the like below and don’t forget to subscribe. If you’re not here you won’t hear about the wonderful things I have to share with you. See you next Monday!
Aug 02 2016
Rank #14: 22. Take back CONTROL in your salon business
I’m not suggesting that you do absolutely everything in your business, there are times when you need to outsource, but there are elements of our business that we’re handing over too readily and we need to start taking back some things into the fold.
Websites: Have enough knowledge and understanding to be able to update your website yourself. Once you have that knowledge you can make an informed decision if it’s something you will carry on doing yourself, or if it’s something you can hand over to someone else.
Social media: Updates I see done by the professionals don't quite ring true; it feels a little bit phoney. Take your social media back, learn to master it, learn to schedule.
Design: You are spending a lot of money on design. In my Salon our prices increase in September and with that I need to send the new prices to my Graphic Designer for the next twelve months. He’ll also give me a template for a flyer that I can use and generate, to be more responsive in my marketing. So get the templates set up, find yourself design software and get the hang of your design so that you can be much more responsive, run promotions more frequently with shorter lead time.
I hope that’s been useful to you, if it has don’t forget to subscribe I would hate you to miss out on the content that I’m putting out every week, if you’re already subscribed I will see you again next Monday.
Aug 08 2016
Rank #15: 25. How to compete with online retailers
Get the full transcript here: http://buildyoursalon.uk/compete-with-online-retailers
Welcome and today we’re talking about how Salons can compete with online retailers. So today what I’ve got for you is seven strategies that I think can give your Salon a fighting chance.
1. We need to remove the ability to make a comparison. Online retailing only works if the customer is able to make a direct and immediate comparison. We can remove that ability to make a comparison then the online retailers don’t stand a chance.
2. Take away the choice for the customer. Reduce her ability to say no to take a product by including them in a service you offer.
3. Take away the choice as far as your staff is concerned. We have a Salon guarantee in place, so my team know they have to consistently talk about retail products.
4. See retail products as an overall project. When you’re seeing the product as an overall project, it gives you a lot more flexibility as far as pricing is concerned.
5. RRP is just a recommendation. Recommended Retail Price is not something the manufacturer can insist on you charging. That gives you the flexibility to charge whatever you want in your Salon, as long as your account is in good standing.
6. Your ability to take pre-orders online. You have the ability to pre-sell online, it does rely on you having some standing as far as social media is concerned.
7. Make offers work harder for you. You don’t have to offer products just because your manufacturer says so, you could use that extra profit margin to change your recommended retail price to something that suites your Salon a lot better.
I hope these strategies bring you some success, if they do please get in touch with me firstname.lastname@example.org, I love hearing about how well Salon owners are doing. Don’t forget to subscribe if you haven’t already, because I’m sharing fantastic content with you every single Monday, and I would hate you to miss out. I will see you next week.
Aug 29 2016
Rank #16: Are your salon services too cheap?
Time and again, I've been getting coaching questions on what salon owners can do about their pricing. These salon owners are scared that their customers are price sensitive and will stop doing business with them.
Most new salon businesses will always have this kind of 'marketing tactic' - to price their services lower than everyone else. They think that customers will instantly flock towards their salon. But this is a very bad idea and you'll definitely have a hard time making ends meet in the long run.
I've been very clear about my feelings when competing on price. Pricing low against the increasing salon competition is a race to the bottom. Pricing your services properly is one of the trickiest parts of growing any kind of business. If your salon pricing is too high, customers may be hesitant to try your services. On the other hand, if you price is too cheap, they'll think that you're inexperienced or devalue what you do.
Getting to that sweet spot of salon pricing is challenging but not impossible. If you're not constantly reviewing your pricing strategy, you'll most certainly have problems covering your overheads.
There is no secret formula to salon pricing. You will find yourself tweaking your service prices every now and then. This goes along with experience and the growth of the market. In this video, I have some tips to help you price your services properly and get the profit you need without necessarily increasing your prices.
Aug 14 2018
Rank #17: Dealing with procrastination
1. An expert at putting off and delaying things?
2. Brilliant at doing the fun stuff first? But leaving no motivation and energy for the things you're supposed to do?
3. Running your life in a panic mode for a lot of the time?
A big part of the business is getting the right stuff done. You CAN get the right stuff done without working right up to a deadline in a very stressful way. And you know that feels so much better! Thing is, a lot of us are our own enemies. We're procrastinators!! We put things off and then end up with a huge rush of tasks when it comes to the deadline.
These tips that I have are based on my very own experiences as a big procrastinator. I have worked really hard to make sure that I'm performing at a level of high-productivity. Basically I have had to deal with my procrastination in a very effective way!
1. Break things down
- there may be times that you feel overwhelmed. When you have so much to do in your mind that it becomes impossible to see a way forward. You need to get to grip with the projects and planning. In short, break things down into smaller chunks. But don't spend excess time on planning, it's mostly about implementation.
2. Reward ourselves
- crossing tasks off a list can feel like a reward in itself. Or even something as basic as making a cup of tea. Whatever you use, make sure you deliver, or you'll have a hard time motivating yourself second time around.
3. Forgive yourself
- show yourself some kindness. In short, don't be too hard on yourself! Procrastination can be a product of low self-esteem - don't feed that beast!
Finally, for more personalised help why not drop me an email: email@example.com - I'd love to hear from you!
Jun 19 2018
Rank #18: Handling dismissals in your salon
May 08 2018
Rank #19: When is it time to recruit?
When is the right time to grow your salon team?
When is the right time to recruit?
This all boils down to your goal-setting. If you don't have clear goals on what you want your salon to achieve this year or in the next 5 years, that is the first place to start. Your goals ultimately dictate the size of the team that you need. Maybe you have a certain level of turnover that you want to achieve. Or maybe you want to step back from the salon floor. This will tell you how many team members you're going to need this year or next.
Start with the turnover target. Once you know the average bill and your frequency of visit you can start to break that turnover target down. It’ll show you the number of people you physically need on the premises earning money for you. That gives us the overall target of what we want your team to look like. Those goals are going be influenced by what it is you really want. Your bigger goals have to come first on this. Your 5 year plan and your life ambitions.
More from Phil at buildyoursalon.com/blog
Apr 25 2018
Rank #20: Protect your investment: training agreements for your salon team
Apr 17 2018