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Budgeting Your Salon’s Promotional Plan

November 21, 2011

Do I have a solid plan?

Most promotional activities will require 6 to 10 weeks of advance planning, allowing time to formulate the idea, source the right items and vendors, meet with your graphic artist and printer and organize the official launch. A very simple in-salon promotion with just a few signs and some props may require only a couple of weeks to bring it to life. However, if you want to have a mailer, a gift with purchase program, banners, a little window dressing and advertise in your local newspaper, you will need at least 2 months to do this well. So now is the time to start planning your Back-to-School promotions that will kick start your holiday season. Laying out a promotional plan for the year will ensure that you are prepared well in advance and not scrambling last minute to fill in the gaps between promotions.

How much is budgeted?

It is essential that you determine your yearly promotional budget. Typically, this is 2% to 7% of your annual sales. Sit with your accountant to identify when your cash flow will allow you to proceed. You will also need to plan for the manpower and time required to conduct each promo. If you need to invest in furniture, merchandising fixtures, banner stands or any re-usable items, they should be accounted for in your equipment or furniture budget and amortized properly; they are not part of your yearly promotional budget. A one-year budget will ensure that you allocate the necessary funds to the right period and that you have those funds available when needed.

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