The Salon Business – at least your clients don’t HATE you!
by Greg Milner on 28/08/10 at 7:50 am
It can only be the money. I can’t for the life of me imagine what else could possibly be attractive about running a business like a bank, where an entire army of customers almost universally loathe you.
I actually feel a bit sorry for the banks. The fact that they’re in business to make a profit – just like every other business – appears lost on media and government, who relish in taking a shot at this soft target every time interest rates hi the news. Pity nobody in the banking industry has the balls to stand up and say ‘Hey, wait a minute, we’re a business not a charity, it’s our job to make money…!’
(Isn’t it funny how most bank customers moan bitterly every time their mortgage rate goes up, complain about the ‘greed’ of big business when the banks publish their billion-dollar profits – but don’t twig that their own retirement savings are heavily invested in bank shares.)
But that other public whipping boy – the airlines – deserve every dose of doggy doo thrown at them. Dumber than a bagful of hammers, for years they’ve competed with each other on little more than price, a strategy that – in any business – can only lead to death.
According to a recent article in the New York Times, US airlines collectively lost about $5billion in 2009. Now, they’re fighting back with an almost-universally despised trick of ‘un-bundling’ air fares so that passengers have to pay extra for things that have traditionally been included in the price of a ticket.
More and more airlines are charging an average of $25 to check in a bag. Several will slug you an extra $8 for a blanket. It’s now common for cut-price airlines to charge extra for exit-row seats which provide a bit more room for tall passengers.
Airlines are beginning to charge extra for what was previously part of the deal - like $8 for a blanket. Oh well, at least you get to keep the blanket....
After years of cutting their own throats by discounting, these big dumb companies have suddenly realized they need to make money. But the way they’re doing it smacks of desperation, and worse, complete ignorance about the concept of adding value, packaging, differentiation and giving themselves an ‘unfair advantage’ over the competition without discounting.
Salon owners who are Members of the Inner Circle Marketing & Mentoring Program could give the airlines a much-needed lesson in such market-making processes.
In Australia, I fly Qantas exclusively. Of all the competing airlines, Qantas is regularly the most expensive carrier. That’s why I fly with them. The food is free, and good quality – even in Economy Class – unlike the inedible trash on US domestic airlines. There are no extra charges for blankets, checked baggage, headsets, movies or anything else. On many flights, even beer and wine is free in Economy. It’s all included in the price.
Where even a profitable airline like Qantas falls down is in its failure to capitalize on this competitive advantage. They still attempt to compete on price alone, too timid to shout from the rooftops
“Hey, we’re the most expensive – but there are no hidden charges, sneaky extras or nasty surprises when you get to the airport. When you buy a Qantas ticket, everything is included in the price!”
Here’s what’s instructive for your salon business:
Take a lesson from bumbling mistakes of the airlines. Instead of constantly trying to compete with rivals on price (discounting), figure out a way to package your services. Don’t allow your customers to ‘cherry pick’ your treatment menu on price alone. By learning to package – as our Inner Circle member salons have done using the templates and tools in the Essential Salon Owner’s Marketing Toolkit® you’ll find yourself attracting customers who are more interested in value than mere price, want service above perceived (often phantom) savings, and are prepared to pay for it.
 |
A post by Greg Milner The odd idea, a bit of prodding, a nudge here and there, a little fun, and the occasional dose of brutal reality. Greg is co-founder and CEO of Worldwide Salon Marketing, a writer, direct response marketing consultant, specialist marketing systems adviser and coach. He (sometimes) accepts private consulting clients. |
Like this article? Share it at:
Sarkis
Mar 30th, 2010
Hi Greg,
May be you should send this article to the Qantas marketing department along with a bill for your advise. By the way don’t forget to add your fuel surcharge to that!
Good article, always enjoying reading your posts because they make so much sense.
Keep up the good work.
Sarkis.
Greg says: Sarkis, I’ve given up on the big companies. They’re so big, they think they’re impregnable. Too big to get out of their own way.
Cheryl Bown
Mar 30th, 2010
Hi Greg,
I totally appreciate what you have created for the Hair & Beauty Industry, we are all creative individuals, but some salons just don’t get it, I have always created an experience for clients and team members in my salon, Just today I as I left my salon the team were booked out and busy for the whole day, because its easter we all had our bunny ears on easter eggs for the clients and on display was our BIG Easter Gift Basket for a lucky client to WIN, there was a huge BUZZ in the salon with the clients commenting how gorgeous we all looked as bunnies, I was on my way to another business that we network with to drop of 55 gift vouchers and a flyers including two types of packages, both packages inc The Works a whole experience, for their ladies night, as I walked through a major shopping centre I passed two hairdressing salons, both had not one client in the salon, most of the major businesses were decorated for Easter, BUT HOW BORING it was to walk pass these salons, I could tell one of the salons is feeling the pinch, it had all the signs- no retail stock on the shelves and a big sign hand written ” Hair Cuts $25 ” thats it, No value, No Experience, No Nothing, I felt sad for them . It would’nt take much to make a huge difference. My salon is in a small group of 4 shops, thats it ! but theres a difference, I love what I do and our clients love us to, this has a ripple affect and is a reflection of the business. I love how I can share this with WSM and IC members.
Keep up the good work Greg
Cheers from the Dream Team at Imagine. xxx
Lorne; Alberta, Canada
Mar 31st, 2010
Very good testimonial on value adding to enhance customer experience.
Congratulations!
Greg Milner
Mar 31st, 2010
Cheryl, it’s more than ‘some’ salons don’t get it. In our experience, 90% or more don’t get it, because they’re owned and staffed by people who in the main think that being ‘good’ at hairdressing or skin treatments is somehow enough – or should be enough – to create a stampede of hungry customers. And are mystified when that doesn’t happen. Only 10% – probably less – ever listen to me when I tell them that marketing IS the business. Which is why we at Worldwide Salon Marketing will only ever be interested in helping that small percentage who actively approach us for help, which we give in spades. There is absolutely nothing we can do to change those relative percentages of those who ‘get it’ and those who don’t.
The ONLY choice available to any salon owner is which group they decide they’re going to be in.
I guess the fact that you came to us and joined the Inner Circle Premium program indicates that you’re in that small percentage.
Regards, Greg
Stacey
Apr 6th, 2010
Greg,
Thanks for your simplistic metaphor for business blunder. I currently work in a salon that is all money and improper marketing skills. Reading your articles sends my creative juices flowing and inspires me to want to open my own shop! So many people just miss the mark! Your website offers great salon marketing. You should be proud that you help so many people in their endevours.
Stacey
Derrick G. McGriff
Apr 27th, 2010
Question: Can i but the “Inner Circlr” marketing package with out jouning. I cannot to afford the $800.0 + per moth just yet. I will soon though
Thank you
Derrick G. McGriff
Derrick G. McGriff
Apr 27th, 2010
Qieston: Can I but the marketing pakage separdly from being a monthly member? I connot join the monthly progrm yet(@ &800.00=) premo.
Thank you
Derrick G. McGriff
Greg says: sory Derrick, only Premium members get the Toolkit. If that changes we’ll let you know, but that’s the policy at the moment.
Trina
Aug 25th, 2010
Im very interested in your program but this is what concerns me. I am opening my first salon (at 46) and plan to work alone whilst I get my head around having a business and all that goes with it. Im worried that if I sign up with you guys too early in that I wont be able to handle the load of extra clients and hiring staff. This is not a cop out but a genuine concern.
Thanks
Kellie
Aug 25th, 2010
Hi Trina, I have been with Greg for 6 years now and have also just opened a new salon starting with no clients 12 months ago, so I know what it’s like to build a salon from nothing. My advice is if you want to build your business up fast, get the Toolkit and put in place all of the internal marketing systems from the start so that any new clients you get in are put into that marketing funnel from the start. Hire a new staff member to help you then market like crazy for new business for the next 6 months at least, with flyers, newspaper etc. We have had to do the same with our new salon and now have 8 staff. It will work you just have to take a leap of faith and take action action action.
Hope this helps
Kellie Rout, Emphasis on Hair, Townsville, Queensland.
Go here to apply for a 90-day Test Drive of the Toolkit and the Inner Circle marketing & mentoring program