November 19, 2008
The ONLY Strategy That'll Recession-Proof Your Salon or Spa

While their competitors quaked in fear at the looming recession, these two ladies increased their salon's sales by more than $20,000 a month for the past three months. Read on to find out how they did it.
"When everyone else is greedy, it's time to be fearful. When everyone else is fearful, it's time to be greedy." Warren Buffet, world's greatest investor, as he spent billions buying General Electric shares at bargain-basement prices.
with Greg Milner, Co-founder Worldwide Salon Marketing
We live in fearful times. When General Motors admits it's a month away from running out of cash and going broke, you know times are tough. But it's also a time of great opportunity.
In the last few weeks we've inducted salon & spa owners into the Inner Circle marketing & mentoring program - and rushed their Toolkits to them by courier - from places as far afield as Goodyear, Arizona (Kelli Packwood, Eclipz the Salon), Marietta, Georgia (Robert Lilly, Sanda Gane Day Spa), Mooloolaba, Queensland (Michael Maidens, Mooloolaba Hair), Nelson, New Zealand (Tracey Power, Woman Beauty Day Spa), and Orange City, Florida (Bo Peary, Boco Salon Spa) - among nearly 40 new Members in the past month alone.
40 new Members in a month might seem like a heck of a lot of salons and spas scrambling, clawing, grasping at any straw they can find to help them survive - even prosper - in a time when the world is inexorably sinking into what appears to be the worst economic storm since the Great Depression of the 1930s.
And yet it's such a tiny number, specially when you consider that in the United States alone, there are more than 350,000 beauty businesses, with over 80 of them closing their doors every single day. Folding their tents, accepting without resistance the common belief that discretionary spending (i.e., personal grooming) goes to the bottom of the list when money gets short.
(Oh, really? How come then that in many houses where money is perpetually short, there's always a shiny new plasma TV?)
So I want to begin this week by giving you some hope, with just one of many, many examples I've recently seen of beauty businesses actually - and dramatically - increasing sales - despite and in defiance of a pervading sense of fear, of relentless downbeat news reports, of panicking governments, job layoffs, China imploding and Paris Hilton only going nightclubbing four nights a week instead of five.
Motion Beats Meditation
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| Jane Dowling and Niki Koutrakis of Talking Beauty in Hawthorn, Victoria have discovered that recession-proofing their business is about doing what's been proven to work - and lots of it. |
In July this year - just over three months ago - Niki Koutrakis and Jane Dowling of Talking Beauty in Hawthorn, a suburb of Melbourne, joined the Inner Circle program and started absorbing and implementing the strategies in the Essential Salon Owner's Marketing Toolkit.
This at a time when the worst news of the global financial crisis was yet to come, when the stock market would fall another 20% over the following three months.
But Jane and Niki knew that there was only ONE strategy that would not only protect them from the worst of the recession, it might even cause them to actually prosper while others - their competitors - threw in the towell and gave in.
Confidence is taking action when you're only 80% sure. If you have to be 100% sure before you do anything, that's just procrastination.
The two ladies immediately began marketing like crazy. They relentlessly took the Toolkit apart, used the ad, flyer and sales letter templates and modified them to suit their own services and products….and sent them out.
A sales letter to 730 clients offering a special $127 'Hollywood Woman' package produced no fewer than 68 sales in three weeks. To save you doing the sums, that's $8,636 - not including add-ons like product sales and re-bookings.
A 'Ravish Me Darling' package produced 30 sales at $147. Another $4,410.
A cheap text message, straight out of the Toolkit, produced 14 sales.
They started enrolling their clients in the Queen of Referrals program - again, straight out of the Toolkit, with immediate results. One client brought in 5 of her friends.
All in all, Niki and Jane took MASSIVE ACTION, over a sustained period of time. Nothing got in their way. They kept their eyes firmly on the only thing that would make their ordinary business extraordinary. It did just that.
| Total Sales | 2007 | 2008 |
| August | $32,000 | $52,000 |
| September | $33,000 | $53,000 |
| October | $38,000 | $56,000 |
As Jane reveals in this brief out-take from a phone conversation I had with her this week, the results have been nothing short of astounding.
| WSM General Manager Jemma Lole emailed our Advanced Marketing Trigger package of Christmas ads, flyers, vouchers and posters to Inner Circle members last week…and the response has been overwhelming. |
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| Michael Curtis sells vast numbers of Gift Vouchers with a simple but well-craft phone script |
Most businesses have a Sales Prevention Department - that's the department that has 'don't buy from me!' stamped on its forehead. No matter how good your marketing, it will always be sabotaged at the back end by disinterested staff, lousy systems, hopeless follow-up and a dozen other gremlins that conspire to stop customers from giving your their money.
But the better your systems, the less you have to rely on the 'let's-invent-it-as-we-go-along' brigade.
One of our more driven and accomplished Inner Circle members, Michael Curtis of Blush Day Spa, tells us his reception staff sell HUNDREDS of Gift Vouchers using a well-rehearsed, easily-learned phone script he insists his staff follow whenever anybody calls to ask about gift vouchers - and Christmas is of course the biggest Gift Voucher time of the year.
How to download this 'midas touch' phone script:
Inner Circle members can simply log into the Members Only 'sealed section' and navigate to 'Christmas Campaigns' - it's the most recent post there.
Filed under Business Education, Getting Salon Clients Quickly, Salon Advertising Tips by Greg Milner




with David Osborne, WSM's Recruitment Specialist. 



The beauty business is essentially about selling eternal youth, a kind of 'painted on' magic pill that somehow defies nature and holds back the tide of age. I, however, am enjoying growing older. I'm now 53, which I figure gives me some kind of licence to be grumpy.