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Pre-Booking: The cheapest and fastest way to increase revenue

November 7, 2012

One of the most frequently asked questions that salons and spas ask is: “What is the fastest, easiest and/or cheapest way for me to increase my revenues?”

More often than not, after inquiring about current business practices, the answer comes down to maximizing the revenue potential of your business’ existing clientele. Although the instinct is to increase revenues by getting more clients into your salon, this usually is not achievable without investing a great deal of time and money. Getting your current clients into your chair more frequently however, can cost nothing and require very little energy.

Research into the Salon Visit Frequency of North American women reveals:

  • 27% visit twice a year
  • 40% visit 5 times a year
  • 19% visit 8 times a year
  • 14% visit 10 times or more

The North American average of salon visit frequency is every 8 weeks (or 6 times a year). Assuming 67% of your clientele can benefit from being in your chair more often (i.e. more than 5 visits per year), if you were to get them in just one or two times more per year, this could generate thousands of dollars for your business. Using an average transaction of $50 per visit and a client base of 250 customers per stylist, by adding 2 extra visits per year, each service provider could potentially increase their annual revenues by $16,750. This is equivalent to a pay increase of 30% in just one year, (with no price increases, no new clientele, no add-on services or extra retail factored in).

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