I believe Groupon is only a good tool to use for new business/generating awareness of your business. I have run a successful two now in my new business but it cost me - something I was aware it would and maybe not to the extent it actually has, and brought with it a lot of complications - but I would never run one if my business was struggling, big mistake!.....
When I started out, I worked for a wonderful man who had been in the industry for about 40 years. He drummed it into me that hairdressers should NEVER discount their work. We experienced recessions back then just as we have now. We sat tight and rode it out. He also taught me how to add value to services, how to upsell and how to actually make money from this industry.
So often on here, I read people discussing how to get stock/equipment cheaper and cheaper so that they can reduce prices and still get a smidge of profit. For some people, my best and kindest advice would be "go get a job".
I charge properly for my work. My prices are worked out on a sort of hourly basis. I do not do discounts. EVER.
I use discounts very selectively in my salons to try and drive business to a new stylist or to push a new treatment, it is always time limited, costed out carefully, and I ALWAYS make a profit on it.
At the moment I have a special offer on a cut and blow dry for a new stylist £25. I charge £45, guess who is busier?
Even if I weight the figures so the rate for the service is the same, my clients spend is far higher due to retail and additional services. We both work in the same shop using the same stock and equipment.
Financial success is about attitude and a state of mind. I assume each client is in my salon looking forward to a spendup. I would never be rude enough to assume they couldn't afford a tube of face cream or a bottle of nice shampoo. We all enjoy having nice things, so why not our clients?
Have a little think about the assumptions you are making about people, it is NOT for you to decide what they can or can't afford.
I have no problem offering an introductory offer to bring new clients in the door; however, it is imperative that they be made aware that it is an INTRODUCTORY OFFER ONLY and that the REGULAR rate is X amount. I believe if you offer them a top-notch service, they'll be willing to pay full price for premium service.
But businesses that offer discount after discount are under-cutting themselves and de-valuing their staff. If I worked for a business like that, I wouldn't feel like giving 100%. It's human nature, I'm afraid. If I know that, say for instance, a service I normally get $75 has been discounted on a regular basis to $40...why bother giving 100%? I'm going to give those clients $40 worth of service. Seriously. Better yet, let the management hire someone who performs $40 quality work. Not me. I'm moving on.
I beleive just the opposite ... I like rewarding my regular loyal clients.
Why would I reward an unknown client with a special offer?? ... a new client does not deserve that, but my loyal clients do. What is logical about giving a special price to an unknown person while my trusty loyal clients don't get it ! I think that sends out a really bad message. Plus it is a really short term approach. I try to attract new clients with new services and great client care when they are with me, plus of course their gorgeous nails, not by giving them special favours that they have not deserved.
Louise, if you are at the stage of struggling to fit people in, then it is the right time to raise your prices by 10%.
Supply=Demand= price stability
Supply>Demand= price falls
Supply<Demand= prices rise
Have a little think about the assumptions you are making about people, it is NOT for you to decide what they can or can't afford.
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