Wowcher, how do they make money?

[Nearlyme]

I did Groupon 2 years ago. I am involved with Highlife 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.

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Really? What colour house do you use?
Its just £20 probably wouldn't cover price of our tints plus the three hours it would take. Not having a go, am genuinely curious about your profit margin on this

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[Nearlyme]

Really? What colour house do you use?
Its just £20 probably wouldn't cover price of our tints plus the three hours it would take. Not having a go, am genuinely curious about your profit margin on this

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I have just calculated and this offer would cost us about £15 per head to run. What if you have someone who wants to pay full price and you can't get them in because you are full of offer clients.
Maybe I am nieve because I do not own a business but I know how much it costs my boss to employ me a week, how much I would have to take before I am profitable to her and even if I was full, back to back at this price, I wouldn't hit that target. Unless I went mad on retail..

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[virtues2011]

Really? What colour house do you use?
Its just £20 probably wouldn't cover price of our tints plus the three hours it would take. Not having a go, am genuinely curious about your profit margin on this

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There is no profit margin on this, you could squeeze a pound out of it here or there but that's all really. Retail has increased considerably. We are charging more when they upgrade to a full head of highlights or hair below shoulder length or thick hair - my junior makes more in tips to be honest. We are a L'oreal professional salon. We sell a lot of backwash size shampoos and conditioners and some of the L'oreal professional styling range. I brand my own range of clip in hair extensions which prove popular. I do much more than everyone else around me.

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[virtues2011]

I have just calculated and this offer would cost us about £15 per head to run. What if you have someone who wants to pay full price and you can't get them in because you are full of offer clients.
Maybe I am nieve because I do not own a business but I know how much it costs my boss to employ me a week, how much I would have to take before I am profitable to her and even if I was full, back to back at this price, I wouldn't hit that target. Unless I went mad on retail..

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This is purely for my junior who at the moment only works two days a week, My senior girls look after the regulars and any walk ins. If the offer clients are looking for an appointment that the junior can not cover then they have to wait until she can. My junior came to me a month ago with no client base whatsoever. This was probably the only way I could justify her being with me. The offer has ended but the validity expires for the vouchers in April so she is not rammed back to back every working day, she has the opportunity to fit other clients in between. The senior girls are passing over some of the newer clients to her for April. This is certainly not a way to make money - but in certain circumstances can assist, again it has got my name out there with over 200+ visits to the website and even a few random bookings from new clients that the seniors have taken.

 

[Nearlyme]

There is no profit margin on this, you could squeeze a pound out of it here or there but that's all really. Retail has increased considerably. We are charging more when they upgrade to a full head of highlights or hair below shoulder length or thick hair - my junior makes more in tips to be honest. We are a L'oreal professional salon. We sell a lot of backwash size shampoos and conditioners and some of the L'oreal professional styling range. I brand my own range of clip in hair extensions which prove popular. I do much more than everyone else around me.

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We would definitely make a loss. You know how expensive INOA and Platinium is and how far it doesn't go lol. I use at least half a 1 tube of tint if doing 2 colours using inoa. Plus would take me 2 and a half hours at an hourly rate.
Ah well if it works for you.
Only offer we do do is a 10% discount off next visit for those clients who consistently have huge bills, we would rather look after the high spenders then scramble around for bargain hunters.
Different strokes although I am genuinely interested in seeing your retention reports for discount clients. I love that sort of thing

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[virtues2011]

We would definitely make a loss. You know how expensive INOA and Platinium is and how far it doesn't go lol. I use at least half a 1 tube of tint if doing 2 colours using inoa. Plus would take me 2 and a half hours at an hourly rate.
Ah well if it works for you.
Only offer we do do is a 10% discount off next visit for those clients who consistently have huge bills, we would rather look after the high spenders then scramble around for bargain hunters.
Different strokes although I am genuinely interested in seeing your retention reports for discount clients. I love that sort of thing

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INOA we don't do - we did have the most recent INOA blondes that were recalled.. we never got any back after that. I can't get anyone interested in it at all. All the girls went on the courses for it as well!.. Platinium should be called platinum! as quite rightly is very expensive, there is an extra charge for that too! My salon is computerised with an extensive reporting structure. We built a loyal clientele base from the first Groupon I did when I first started, they come to us to this day. I am very proud of my girls, they are very talented and are registered with the hairdressing council, one is an assessor and my Manager came forth in the Blackpool finals last year in the fantasy category. It's been good to talk to you.

 

[Nearlyme]

INOA we don't do - we did have the most recent INOA blondes that were recalled.. we never got any back after that. I can't get anyone interested in it at all. All the girls went on the courses for it as well!.. Platinium should be called platinum! as quite rightly is very expensive, there is an extra charge for that too! My salon is computerised with an extensive reporting structure. We built a loyal clientele base from the first Groupon I did when I first started, they come to us to this day. I am very proud of my girls, they are very talented and are registered with the hairdressing council, one is an assessor and my Manager came forth in the Blackpool finals last year in the fantasy category. It's been good to talk to you.

You may want to update your website I had a sneaky peak and INOA is still listed. We use INOA and have a love hate thing going on so get where you are coming from with that.

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[virtues2011]

You may want to update your website I had a sneaky peak and INOA is still listed. We use INOA and have a love hate thing going on so get where you are coming from with that.

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....thank you! I still have a small stock of INOA colour, so can leave it up there, but I have not sold not more than two that I can remember - but majirel, majiblond, diarichesse and dialight are the ones we use.....don't start getting too technical as i'll fail quickly.....:biggrin: