Wowcher, how do they make money?

[Missy106]

(My last post got removed so im posting again without the photo)

Ive just seen someone on wowcher half head hilights and a cut&finish for £19!!! How do they make any money? X

 

[fascinationkt]

I believe it's one of those gambles that a business is using to try & pull in more clients in the hope they become regulars. I'd imagine they've covered costs with a very small if any profit. At least Id hope they've covered costs.

 

[virtues2011]

It's a quick form of advertising to over a 100k people. Depends how you look upon it. The half a head of highlights may stipulate in the small print (only twenty foils) they may have a cap on the offer at 20 people ..they may work harder on upselling services or products. Salons generally use the cheapest staff members and the cheapest products. A lot of salons philosophy is some money is better than no money. You have to pay your staff to stand in a salon with no customers or they get a very little money, try and promote and hope the customer rebooks and buys retail at their appointment. It depends how the owner feels about these sort of deal sites and really what sort of area you are in. Not many salons make a profit from this, if at all, but if you can cover your costs and advertise to tens of thousands of people at the same time it depends if you feel your salon is devalued by using this method. Some find it a quicker way of building a clientele base for a new staff member who would be sitting around anyway to a degree, not all the staff have to service these clients it can be one or two. I have used this method to my advantage and have never lost, or had demanding clients and had lots of bookings through my website and return clients.... I'm not the one who writes I have no customers and I had to open a salon three days a week with no clientele base at all.

 

[Nearlyme]

I think quality always wins out over price. In a town of 16 salons we are and always have been known as "being expensive but amazing". Been working for nearly 40 years.

http://getmoremomentum.com/10-reasons-compete-price/
Sent from my GT-I9505 using SalonGeek mobile app

 

[Verve Designs]

It's called a loss-leader.

Loss leader - Wikipedia, the free encyclopedia

 

[maddynails]

big dreams of client retention, the reality is everyone you obtain via wowcher/grupon are one hit wonders......a major no no.....better to close for 2 weeks and sit on the couch watching tv rather than do a deal! the result is the same ie zero money but at least u will be chilled out

 

[virtues2011]

There will always be massive difference of opinion on this subject. Like anything, it is good for a one off for some and not for others. It certainly hasn't harmed my business. They probably are not necessary for an established business that has been successful for 40 years, as well as probably being in an affluent area, unfortunately neither apply to my salon. I do better than most around me, thankfully.

Sent from my GT-N7100 using SalonGeek mobile app

 

[Nearlyme]

Nope not affluent and a completely new team three years ago. Whole team of SE stylists left with 24 hours notice to open up 1 street away. 7 in total and they took their clients with them.
There are now 5 of us now, three of whom are part time and we just had the largest grossing January/February the salon has ever seen.
Our only tactic was to hold our heads high and not cow tow to the temptation to put out desperate offers. Two of the former staff asked to come back and we said "no thanks"

Sent from my GT-I9505 using SalonGeek mobile app

 

[virtues2011]

Nope not affluent and a completely new team three years ago. Whole team of SE stylists left with 24 hours notice to open up 1 street away. 7 in total and they took their clients with them.
There are now 5 of us now, three of whom are part time and we just had the largest grossing January/February the salon has ever seen.
Our only tactic was to hold our heads high and not cow tow to the temptation to put out desperate offers. Two of the former staff asked to come back and we said "no thanks"

Sent from my GT-I9505 using SalonGeek mobile app

That's really good. You must be proud to work there and you are clearly a talented hairdresser. I often read some of your advice regarding colour changes etc. Although i'm no hairdresser and have a very small understanding of the practical side, I do find it interesting. It's hard to start a business from having no client base whatsoever especially these days. We're doing better year on year so I can only be thankful for that. I have six staff at the moment.

Sent from my GT-N7100 using SalonGeek mobile app

 

[Nearlyme]

That's really good. You must be proud to work there and you are clearly a talented hairdresser. I often read some of your advice regarding colour changes etc. Although i'm no hairdresser and have a very small understanding of the practical side, I do find it interesting. It's hard to start a business from having no client base whatsoever especially these days. We're doing better year on year so I can only be thankful for that. I have six staff at the moment.

Sent from my GT-N7100 using SalonGeek mobile app

I am incredibly proud. I had little/no client base when I started. I had three children in 6 years and had a really bad experience at the last salon I worked at which almost put me off hairdressing altogether ( sexual discrimination not setting fire to someone's hair or something like that)
It is definitely a passion, you can't do hair and make money from it if you have np passion. This is why I would never sell myself short with Wowcher or Groupon. A bit of me walks out that door with my clients and I don't come cheap.

Sent from my GT-I9505 using SalonGeek mobile app

 

[virtues2011]

I am incredibly proud. I had little/no client base when I started. I had three children in 6 years and had a really bad experience at the last salon I worked at which almost put me off hairdressing altogether ( sexual discrimination not setting fire to someone's hair or something like that)
It is definitely a passion, you can't do hair and make money from it if you have np passion. This is why I would never sell myself short with Wowcher or Groupon. A bit of me walks out that door with my clients and I don't come cheap.

Sent from my GT-I9505 using SalonGeek mobile app

Are you self employed?

It is certainly harder when you control others lives I must say. My staff have stayed with me from the beginning. I don't pay minimum wage and I reward my staff accordingly. My senior girls didn't get involved it was purely for a junior staff member who I gave a chance to, she came to me asking if I could help her with a job. I made a position for her, I didn't need her but with the understanding that she finds and maintains her own client base, leaflet drops and shows passion and determination and supports the senior girls where necessary, she is only 17... so that's what I did. I could have said 'sorry about that I can't help you'. ..That's not me.

Sent from my GT-N7100 using SalonGeek mobile app

 

[virtues2011]

The only reason I got involved in the industry was because of my daughter, she completed her college tuition in the salon I purchased just so I could help her, she couldn't get an apprenticeship in a salon down here for love or money .. She qualified, hated it, and left. .. great!

As an example, In the space of two hours, three customers, two having a course of caci and one for a chemical peel I can make £1500. Do that three times a week and that's where the money is. You need a passion for that also though!

Sent from my GT-N7100 using SalonGeek mobile app

 

[Nearlyme]

Are you self employed?

It is certainly harder when you control others lives I must say. My staff have stayed with me from the beginning. I don't pay minimum wage and I reward my staff accordingly. My senior girls didn't get involved it was purely for a junior staff member who I gave a chance to, she came to me asking if I could help her with a job. I made a position for her, I didn't need her but with the understanding that she finds and maintains her own client base, leaflet drops and shows passion and determination and supports the senior girls where necessary, she is only 17... so that's what I did. I could have said 'sorry about that I can't help you'. ..That's not me.

Sent from my GT-N7100 using SalonGeek mobile app

I am employed.
I definitely wouldn't have done groupon for a 17 year old.
I had my first job aged 16 as a general dogsbody in a reputable salon, I learned how to do head massage and hand massage through AVEDA and used that as a way of introducing myself to clients and getting them talking about me.
I figured that whilst people were having their hair coloured I could give them a complimentary hand massage, explain I was training and looking for models so if they had any friends or family they would like to send my way then I would be incredibly grateful. Before too long I was aged 17 and running a full colour column along with starting to cut. I put a few lazy stylists noses out of joint but if they wanted to sit smoking whilst I was massaging their clients scalp and telling them how beautiful their hair would look with just a few highlights, and yes I had time next Tuesday, then that was their own fault.
I think crazy offers and pricing have made stylists lazy, they rely on getting an hourly wage whilst making no effort to sell themselves. They think "oh well they are only paying me £20 for full head foils and a cut, why am I going to bother doing a good job because they are never coming back unless I do another offer".
It breeds complacently.

Sent from my GT-I9505 using SalonGeek mobile app

 

[Nearlyme]

The only reason I got involved in the industry was because of my daughter, she completed her college tuition in the salon I purchased just so I could help her, she couldn't get an apprenticeship in a salon down here for love or money .. She qualified, hated it, and left. .. great!

As an example, In the space of two hours, three customers, two having a course of caci and one for a chemical peel I can make £1500. Do that three times a week and that's where the money is. You need a passion for that also though!

Sent from my GT-N7100 using SalonGeek mobile app

I don't know if I could get passionate about that. I am, always have been, very artistic, (my mother was incredibly annoyed I went into hair when I was a straight A student with a portfolio fit for The School of Arts.) I love the artistry of hairdressing, the waking up in the night with a vision and having to write it down. I can see the joy you get from someone looking ten years younger though.
I just think that when you undersell your stylists, you undervalue that artistry, so that part of them dies. More likely then not, 18 months down the line, they decide to leave and go into care work or back to school.
In my experience a lot of stylist who don't build end up getting pregnant and giving up hair completely.

Did Wowcher help build a good client base? Is she still with you?

Sent from my GT-I9505 using SalonGeek mobile app

 

[virtues2011]

I am employed.
I definitely wouldn't have done groupon for a 17 year old.
I had my first job aged 16 as a general dogsbody in a reputable salon, I learned how to do head massage and hand massage through AVEDA and used that as a way of introducing myself to clients and getting them talking about me.
I figured that whilst people were having their hair coloured I could give them a complimentary hand massage, explain I was training and looking for models so if they had any friends or family they would like to send my way then I would be incredibly grateful. Before too long I was aged 17 and running a full colour column along with starting to cut. I put a few lazy stylists noses out of joint but if they wanted to sit smoking whilst I was massaging their clients scalp and telling them how beautiful their hair would look with just a few highlights, and yes I had time next Tuesday, then that was their own fault.
I think crazy offers and pricing have made stylists lazy, they rely on getting an hourly wage whilst making no effort to sell themselves. They think "oh well they are only paying me £20 for full head foils and a cut, why am I going to bother doing a good job because they are never coming back unless I do another offer".
It breeds complacently.

Sent from my GT-I9505 using SalonGeek mobile app

She is a very talented youngster and is doing very well. I did cap the offer very low and it wasn't Groupon or Wowcher it was in fact a local deal site for my area... and I know the girl who's business it is although this probably doesn't detract from the fact it is still the same principle. We have managed to retain clients, not everyone obviously. I have no need to do one again. I do exhibit at the wedding fairs, we did two last year but focused on our services as a whole, that proved lucrative. My average full head of highlights cut and blow dry is £89 but that is in the higher end pricing of the area I am in. I am extremely strict on skin tests health and safety and customer service.

Sent from my GT-N7100 using SalonGeek mobile app

 

[Nearlyme]

She is a very talented youngster and is doing very well. I did cap the offer very low and it wasn't Groupon or Wowcher it was in fact a local deal site for my area... and I know the girl who's business it is although this probably doesn't detract from the fact it is still the same principle. We have managed to retain clients, not everyone obviously. I have no need to do one again. I do exhibit at the wedding fairs, we did two last year but focused on our services as a whole, that proved lucrative. My average full head of highlights cut and blow dry is £89 but that is in the higher end pricing of the area I am in. I am extremely strict on skin tests health and safety and customer service.

Sent from my GT-N7100 using SalonGeek mobile app

See, you assumed I was in an "affluent" area... you are about on par price wise.
I am from £66 for a full head foils with cut and finishes from £31.

Sent from my GT-I9505 using SalonGeek mobile app

 

[virtues2011]

See, you assumed I was in an "affluent" area... you are about on par price wise.
I am from £66 for a full head foils with cut and finishes from £31.

Sent from my GT-I9505 using SalonGeek mobile app

Ahhhhh ok. That's interesting. Thank you. Does that make you average in your area or lower/higher? I do monitor what is going on around me, I find it interesting to see what others are doing and I know I'm not the cheapest by a long shot. Salons are popping up everywhere around me although two this year already have gone bust.

Sent from my GT-N7100 using SalonGeek mobile app

 

[Nearlyme]

Ahhhhh ok. That's interesting. Thank you. Does that make you average in your area or lower/higher? I do monitor what is going on around me, I find it interesting to see what others are doing and I know I'm not the cheapest by a long shot. Salons are popping up everywhere around me although two this year already have gone bust.

Sent from my GT-N7100 using SalonGeek mobile app

We charge the same as our main competition (the salon the other stylists opened stole our price structure). There is one salon which charges about twenty percent more, but caters to a different client base, but other than that we are significantly more expensive

Sent from my GT-I9505 using SalonGeek mobile app

 

[Nearlyme]

You have a groupon on just now though?

Sent from my GT-I9505 using SalonGeek mobile app

 

[virtues2011]

You have a groupon on just now though?

Sent from my GT-I9505 using SalonGeek mobile app

I did Groupon 2 years ago. I am involved with xxxx for my junior which had just expired. £26 .... I get £20. Covers her wages, colour and overheads. I make little profit on this but cover her costs.

Sent from my GT-N7100 using SalonGeek mobile app