Great Article posted by Persianista on FB .. everyone should read it!!

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Judge Gigi-Honorary Geek
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I totally agree. Groupon is my biggest bug. There are plenty of other solutions. They are making a fortune from struggling businesses and it is only a temporary measure!
 
At the moment I don't have many clients and one of my friends keeps telling me that so and so are offering acrylics for £10. Get out of here!!! Who was is that said she wouldn't get out of bed for so many thousands. Well I'm not for £10. I know those clients just hop around getting the cheapest. I want to build up regulars. Funny as well how my friend was quite happy with the freebies when I was just starting to learn but now I have to and will charge goes to the £10 tech or whoever is the cheapest at the time.
Vicki xx
 
Thanks for posting this Gigi:)

A very well written article full of very good advice.
 
Could not agree more! I know a few salons who actually run their business by just doing deal after deal after deal! Because they've started doing them and they can't get out of it now! They don't realise how much it cheapens the salon because these client just expect it all the time, they won't ever pay full price they will just wait for the next deal coz they know it's coming! Like the article says.
 
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Thank you for posting a really interesting and useful article - I am not a fan of Groupon and the article re-enforces that feeling - making money out of struggling business is immoral as far as I am concerned and cheapens our skills and reputation as professionals, which is unfair considering the huge amounts of money that the Beauty/Nail/Hair industry brings to the economy.
 
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!.....

It's good for Groupon ... it is not great for anyone else!

Best thing one can do to grow thier business is to be honest, work hard and give great service to the customers/clients. imho
 
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.
 
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.

Bravo Dawn. !!

If anyone cares to search my posts using the word discount they will see that I have banged on about NEVER do it on here for nigh on nine years now.

Sadly in the business of nails and beauty there are many who are good at what they do but know absolutely nothing about running a business. They don't even take the opportunity to ask those who do know ... instead, they ask those who don't know either. It's nuts!

I feel these companies like groupon are parasites feeding off the weak and at their weakest point ... slave labour really. I call them 'bottom feeders'/pond life and they seem to find plenty of poor suckers to feed off.

There is no easy instant fix for a business and discounting is definitely not one.
 
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.
 
If you have to do discounted work, at least do it with good grace or else it is totally pointless.
When I opened my second salon we used hair group. Some stylists made the assumption that people were only after a freebie, and behaved accordingly.
Someone was off sick, and I covered her hair group client. That client is still with me and has send many others in. It is usually about attitude
 
This thread is fab...love it
 
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.

I think for some businesses starting out, introductory offers may be just what they need to jump start them. Introductory offers are also great, as Persianista stated, to bring clients in to new therapists, stylists and technicians who may otherwise not have any. I believe as long as these clients know that they are just introductory offers and afterwards regular rates apply, it's up to the professionals' talent and the business itself to keep the clients coming back.

My problem is with businesses that continually offer discount services for no apparent reason...constantly running specials...devaluing our services. There is no benefit to the business or the professional. When a business continually runs specials/discounts, people will only come when there's another discount. They know one is right around the corner. Why pay $50 for a pedi when they can just wait a couple of weeks and it'll be discounted 1/2 off because that's the pattern.
 
I have recently experimented with a groupon offer.....time will tell what it does for my business...
but to be honest my other half was fuming with me for doing it.....because i simply can not fit anymore clients in as it is...
I cant really do any special offers/discounts because i dont have the time to promote or plan them....and i just dont have the appointment spaces in my diary...therefore i guess that means i dont need to??

I do a loyalty card system which i have been running for years and my clients love that....i also work hard on upgrades...such as i charge an extra £5 for a uv gel topcoat....a extra £10 for a paraffin wax hand and arm massage....but even fitting in a extra upgrade is hard.

At the moment for me there just isnt enough hours in the day.I wanted to "try" the groupon to see what is does for me and bring some more local business to me....but it certainly hasnt done any favours for my relationship

i forgot to add that for me i think the best thing is selling/retailing solar oil a long with the shellac aftercare/rtemoval kits i have put together.

I am viewing the groupon as a chance to showcase myself and business to new clients....and if they are not booking back in then i will only be happy if they are walking out with something...be that a removal kit or solar oil
 
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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
 
Apparently it is beginning for us at our salon. Sorry for the strong language, but this is bulls**t. If you eat at the owner's bistro, you get a discount on the salon & spa services. Really?


Have lunch on us at Sumatra Bistro this week
 
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great thread! thank you :biggrin:
 
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

This is what we have just done in our salon. We are so busy in our beauty department and about a month ago I realised that even though we are busy we still arn't making what I would like. The majority of our treatments are well priced but I am guilty of leaving some treatments low priced. Not sure why I just haven't put them up in a while.
Well as of 16th Aug our prices are going up. My staff are really happy about it and even some of the client have commented that it's about time. I'm positive we will lose clients but we are lucky enough that now we can afford to.
Work smarter not harder.
xx
 
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.

Not related to the thread a such, but this REALLY pees me off. I like to buy nice things sometimes. So when I walk into a nice shop and the assistants look at me like I shouldn't be there it winds me right up.

When I bought my new car last year, the guy I went to obviously thought I was a time waster 'just looking' at a gooooorgeous red convertible. Because let's face it, I'm young and sometimes do look like a bit of scruff lol. So I went back the next day to see someone else and bought the car. I'd been saving for a house, so I dipped into that! Lol.

Looks can definitely be deceiving and you should never make an assumption, you just never know!
 

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