Retail Recommendations Drive Retail Success

August 25, 2019 | By Neil Ducoff | No Comments

The retailing of professional products through salons and spas is a no brainer. Always has been.

Retailing in salons and spas has also been a source of major frustration for owners and employees.

As an owner, you want employees to sell retail, while at the same time, many employees avoid selling retail as if “selling” is something evil. The infamous service provider excuse is, “I’m an artist, not a salesperson.”

Many years ago, Strategies started teaching and coaching a system we fondly call “Happiness.”

“Happiness” is simply a procedure that service providers are required to use at the end of a service — before the client leaves their chair, station or treatment room.

“Happiness” has the following five steps for a service provider to complete:

  1. Provide every client with a recap of the services/work completed.
  2. Verbally recommended professional products for the client to use between visits — and write the product names on the client traveler, ticket or designated piece of paper.
  3. Verbally explain the recommended maintenance cycle with an “on or about” date for the next visit — and write that “on or about” date down below the recommended products.
  4. Tell the client that guest services will assist the purchase of the recommended products and schedule (prebook) the client’s next appointment. (To drive prebook and client retention rates, guest services can schedule the next two or three appointments.)
  5. To complete the service provider’s “Happiness” requirements, the written recommendations for products and future appointments must be handed to guest services by the service provider, or designated employee.

“Happiness” has the following two requirements for guest services to complete at client checkout:... Read More

The retailing of professional products through salons and spas is a no brainer. Always has been. Retailing in salons and spas has also been a source of major frustration for owners and employees. As an owner, you want employees to sell retail, while at the same time, many employees avoid selling retail as if “selling” is something evil. The infamous service provider excuse is, “I’m an artist, not a salesperson.”…
Read More

Categories: Profitability

“My” Numbers VS. “Our” Numbers

August 19, 2019 | By Neil Ducoff | No Comments

As a salon/spa owner, what’s more important to you, the revenue one service provider brings in, or, the total revenue your company brings in?

The obvious answer is, the total revenue your company brings in.

So why is the industry so obsessed with individual revenues?

Why is it that an individual’s total revenue is the first number discussed in performance reviews?

Why is it that individual revenue numbers get posted for all to see and total salon/spa revenues are rarely posted?

And why is it that so many owners don’t want their employees to know their company’s total sales?

Yes, I get that all those individual “my numbers” add up to total revenues.

I also get that the more an individual brings in, typically determines that individual’s value to the company. So much so, that the more an individual brings in, the less important other critical performance numbers and behaviors become.

So, what’s the BIG challenge spotlighting what each individual brings in, over shining that spotlight on your company’s total revenues? ... Read More

As a salon/spa owner, what’s more important to you, the revenue one service provider brings in, or, the total revenue your company brings in? The obvious answer is, the total revenue your company brings in. So why is the industry so obsessed with individual revenues? Why is it that an individual’s total revenue is the first number discussed in performance reviews? Why is it that individual revenue numbers get posted…
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Categories: Financial Literacy

Is Your Salon/Spa Consuming Your Life?

August 11, 2019 | By Neil Ducoff | 2 Comments

FACT: The state of your salon/spa company determines your state of being.

If your employees are productive, clients are happy, and the company is profitable, you feel good.

Likewise, if you’re constantly fighting fires, employees are driving you crazy, and cash flow is barely flowing, you feel stressed and overwhelmed.

We brave entrepreneurs work and fight hard for our companies to succeed. And when they are successful, we continue to work and fight hard to sustain that success and drive growth.

Building a successful salon, spa, or any business, is a roller coaster ride of wins and losses, good times and bad. Because we believe in our vision and risked damn near everything, we find a way persevere.

As we try to figure out the complexities of “leadership,” we begin to relate to terms like workaholic, micro-manager, moody, stressed out and overwhelmed.

Without even realizing it, our companies become part of who we are. We willingly sacrifice our time, our thoughts, and too often, our well-being, so it can succeed.... Read More

FACT: The state of your salon/spa company determines your state of being. If your employees are productive, clients are happy, and the company is profitable, you feel good. Likewise, if you’re constantly fighting fires, employees are driving you crazy, and cash flow is barely flowing, you feel stressed and overwhelmed. We brave entrepreneurs work and fight hard for our companies to succeed. And when they are successful, we continue to…
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Categories: Information Flow , Leadership

Three BIG Cheers for Blush Salon Spa

August 4, 2019 | By Neil Ducoff | 1 Comment

Lacey Spaulding is the owner of Blush Salon Spa in Fargo, ND.

  • Lacey is a long-time coaching client of Strategies and winner of the 2016 Team-Based Pay Award for Culture Shift.
  • Lacey has grown Blush into an efficient, profitable business with a truly impressive team-based culture.
  • Blush Salon has been in the very capable care of Strategies Coach, Steve Swanson.

But nothing can prepare a leader and team for the sudden and tragic loss last June of Johnny Grey, who was not just a valued team member, but a team member with an infectious spirit for life and dedication to teaching and delivering the highest standards of professional salon services.

On August 2nd, Lacey posted the following to the Strategies Facebook page.

I seriously can’t even make this up. We hit our July service goal on the EXACT DOLLAR yesterday. We exceeded retail by $339, and hit service right on as our very last client checked out last night! ... Read More

Lacey Spaulding is the owner of Blush Salon Spa in Fargo, ND. Lacey is a long-time coaching client of Strategies and winner of the 2016 Team-Based Pay Award for Culture Shift. Lacey has grown Blush into an efficient, profitable business with a truly impressive team-based culture. Blush Salon has been in the very capable care of Strategies Coach, Steve Swanson. But nothing can prepare a leader and team for the…
Read More

Categories: Leadership , Team-Based Pay

H.R. 1349 FICA Tip Tax Fairness – One Salon Owner’s Courageous Fight

July 28, 2019 | By Neil Ducoff | 2 Comments

In the salon/spa industry, tipping is a blessing and curse. It’s a blessing because the custom of clients giving gratuities can add significantly to salon/spa service providers’ personal income.

It’s a curse for a number of crucial, often misunderstood, reasons:

  • IRS Law states, “All tips are income earned at work and therefore subject to the same withholding tax as regular income.” This means every tip dollar must be reported and taxes withheld.
    • It doesn’t mean only reporting tips on credit cards and keeping the cash.
    • It doesn’t mean reporting 10% of service sales when tipping easily exceeds 15% and higher.
  • Owners cannot say, “It’s my employees’ responsibility to report tips on their tax returns — not mine.” As the employer, IRS law clearly states that the employer is responsible for collecting tip income amounts from employees and withholding payroll tax — exactly the same as regular pay.
  • As the employer, salon/spas must pay the matching FICA tax on tip income.
  • When tips are added to credit card charges, the employer is paying card processing fees.

The restaurant industry stood up for itself — and won... Read More

In the salon/spa industry, tipping is a blessing and curse. It’s a blessing because the custom of clients giving gratuities can add significantly to salon/spa service providers’ personal income. It’s a curse for a number of crucial, often misunderstood, reasons: IRS Law states, “All tips are income earned at work and therefore subject to the same withholding tax as regular income.” This means every tip dollar must be reported and…
Read More

Categories: Financial Literacy

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