How to keep up with competition?

[emily22]

Hiya,

Don't know if im the only one who has this problem but im finding it sooo hard to get new clients at the mo - in fact even to keep old clients has become difficult!
I've recently come back from matenity leave and as a mobile nail tech worknig on my own I am finding that no-one seems interested at the mo - no matter what offers etc I put on!

Many people have told me that they have been going to the 'cheaper' salons on the high street - and in my area there are so many of them! When i've been walking round town ive noticed the cheaper salons are much busier than the more - what i woud call - normal priced ones!! Some of the long standing salons arent even open all week now like they used to be!

I know we are in a credit crunch - and i have to say if it were me and i was watching the pennies - i would be looking for the best price for what im after!
I have been looking at the prices of the cheaper salons and i just dont get how i can compete with them! Im already charging lower prices than usual and if i go any lower it wouldnt be worth me working!..

Ive just got myself another job on the weekends to ring some money in and am very tempted to just pack it all in, but i love doing nails and feel i would have wasted so much time and money that ive put into doing it all! :cry:

 

[Paperclip]

The problem at this time there are so many nail salons offering the same treatments. With the boom time it seemed like every other salon was a nail salon(no offence to you).
Now even though you do nails, I only offer natural nails, is there another treatment you can offer. Massage, Facials, Hot stone Manicures/Pedicures. I dont think you should lower your prices at all. We offer a professional, experienced service and I dont think we should undercut ourselves. Cheaper is not necessarily better.
Why not try recommend a friend offer. Girls parties, Ladies night. Have you thought of working evenings? I work 3-9 and I am really busy. I think people like to come after work even women, like yourself with small babies, cant come in during the day so evening appointments are easier.
Dont give up it will get busier. You just need to offer something that the other salons aren't offerering.
Hope this helps? Good luck. X

 

[kylieb]

I am too finding it a real struggle and i offer quite a lot of services. I have moved quite far away from my old house, so im having to start building my clients up again and to be honest it is proving very difficult to even find one!
You say that you had clients that are going to a cheaper salon? Just an idea but could you not do their nails at your house for cheaper. Just thinking that you wouldnt have to pay for petrol or extra time setting and packing up.
xxx

 

[emily22]

Hi, thanks for the replies! I do offer a good variety of treatments, I do manicures, pedicures, 'T.L.C' treatments, Little Miss Princess Parties, Pamper eve's, Acrylic nail enhancements & Nail Art.
I often run a 'recommend a friend' scheme and loyalty schemes.
I do regular leaflet drops - I purchase the postcards from Visatprint which are easy to pop through the letterboxes, I have contacted lots of schools in the area to see if I can do a table at their school fetes but have had no response, I often donate vouchers to school raffles - but these often get used once and then thats it, I've had the odd one that has bought in a new client.. I place ads in local shops, run a website, advertise in the thomson local and yellow pages, I have biz cards in hairdressers & wedding shops, I've had my car signed, offer eve & weekend appointments etc etc... the list in endless!!

I just don't know where i'm going wrong! I set up with help from the Princes Trust and even my mentor says that I can't do much more, she thinks the credit crunch seems to be affecting a lot of people who are starting up. I know i'm not exactly starting up but i am kind of starting again after being on maternity leave...

Maybe i've just got to try and ride this out, I just seem to be constantly spending out and getting nothing back... :cry:

 

[siteforsoreeyes]

I often run a 'recommend a friend' scheme and loyalty schemes.
I do regular leaflet drops - I purchase the postcards from Visatprint which are easy to pop through the letterboxes, I have contacted lots of schools in the area to see if I can do a table at their school fetes but have had no response, I often donate vouchers to school raffles - but these often get used once and then thats it, I've had the odd one that has bought in a new client.. I place ads in local shops, run a website, advertise in the thomson local and yellow pages, I have biz cards in hairdressers & wedding shops, I've had my car signed, offer eve & weekend appointments etc etc... the list in endless!!

Sorry to hear you are struggling with the credit crunch, but to me and I don't want you to take this the wrong way but you seem to be using a lot of advertising techniques that have low conversion rates especially when you are just starting out again.

For example leaflet drops have a conversion rate of approx 1.5% this is even if you do this to your specific target market and not just post them to every man and his dog, your well earned money normally ends up filed in B1N.

Logos on the side of vehicles has one of the lowest conversion rates out their. (Don't destroy the family saloon)

School Fete's, these are normally visited by my nan and yours.

Yellow pages are getting long in the tooth now, more and more people are using the net especially your target market, which moves me on swiftly to Yell.com very good at charging a large amount of money lie to you and say 300 people viewed your listing, but guess what you never got a single call.

As for the other local salons dropping their price, they can afford to do this, they already have a strong customer base,these companies would much prefer to have 100 customers spend £10 each than 20 customers spending £30 each. Profit margin may be less but over time "less is more"

What you really need to do is be different from the competition, do something that has never been done before like for example speaking to your local council and explain your situation and ask if you can set your up for a couple of days and sit their and do nails for free.
You may have to get a street traders licence and it may cost you a little more in materials but at least you are attracting your target market and obtaining their contact details in the process.
This will also help with word of mouth, who's not going to tell anyone that they got their nails done for free, first thing they will be asked is lets have a look? and who did them?

Another thing to think about is always make the customer think they are getting something for nothing, you write free in any of your advertisements you will have the readers attention.

Another thing that I know is a massive marketing tool, are offering your services through a text message. EVERYONE reads their texts, the trouble with this method is that you need mobile phone numbers, now this can come from either your current clients or you could buy these numbers from mailing list companies, these start from about 9-10p a name, a little expensive but the advantage is that you are targeting the market that you specify. You could also use these not for mail shots.(not leaflets)

You have always got to know who your target market is and attack that market without going off on a tangent. Go to where your target market go, advertise where your target market will see.

And sorry if I have taught anyone to suck eggs

 

[number1kitty]

Sorry but this is the most demotivating and suicidal thread I have ever read!!

I have in the last few months launched a brand new buisness specialising in only one area. I have 29 girls working under me that have only joined in the past month!

The competition is rife for what I am offering, so what! People won't get any discount off me.

All these idiots that have shops selling themselves short will all be bankrupt by the end of this so called recession! and good riddance. They often offer cheap products, poor service and bad aftercare.

Then good salons follow suit, fall into the same pitfall, cut their prices and struggle to pay bills. Why don't salons realise discounting is a waste of money.

I would rather 10 people pay me £20 for a treatment in the week, at current market value than earn half this and have to do twice as much.

People blame the current cliamte, their clients, their competitior but never ever themselves.

And no advertising is bad advertising 1.5% of a leaflet drop of 1000 people is still over 10 new clients so if this is worth £300 to you and then their repeat business.

Have a look at beauty salon adverts. There all so pretty, never get to the point and just the same as every other advert you see for the same service daily.

You can market your buisness and earn your self a nice income from only a few clients a week. The idea is to get good clients, that pay the going rate because they like you and your products. The thing on sale is not your product its you. If people like you you will rarely find them go anywhere else.

Make your clients feel special, so special they will pay full price and come back week on week out.

We spend so much money chasing new clients, only to let them disappear after their first treatment. Thats the biggest fault of all!

In my first two months of business I have made £9,000 off one treatment. My girls are all making around £500-£900 a week. The worst girl is earning £140 but she has only just started and has a full time job.

No clients? They are out there you just have to attract them for the right reasons. Discounting them is the wrong way.

And once all these silly salons that are undercutting you go out of business or get sued for damaging a client, then where are all these clients going to go?

SOme things just can't be the same no matter how cheap you get it. A top from primark will not last as long as one from calvin klein. These designers are not struggling at the minute, theres price points for all of us.

Think about what you would quite happily pay more for? Shoes? Perfume? Wine? Pedigree Dog?

Pick up your confidence, glue on a smile and put your prices back up to their true value then get out there again.

Kate

 

[crystaltash]

Wow, Kate. Well said! It certainly gave me a kick up the bum anyway!! :lol:
What treatment did you do for £9,000? Thats pretty amazing!

:hug:

 

[emily22]

Wow! Siteforsoreyes and Kate! Thank you for your wise words! Both of you have given me a kick up the backside - and opened my eyes to a few things that I couldnt really see before! So thanks!

I have got a big booking for a special needs care home this week, it could hopefully be something that will become a regular thing - say once a month or so... I'm just doing a simple file & poliosh on each person with a bit of nail art as well.. Something that wont take too long per person but should make a fair profit on as well. I'm really looking forward to it as im told they are all very excited about me coming!

I've done the texting clients thing, not heard back yet but give it time...

Im also going to contact the council as they often run free fun days in the community, so im going to find out how i can be at one!....

Right, well now im all motivated again, i best get on the phone and get to work! lol!

Thanks again to all of you!! x