Cut costs without losing staff

When the going gets tough, many business owners fear that the most effective way to cut costs in a salon or clinic is to reduce head count. But there are other options to explore before you head down that path.

Often, the some big savings are overlooked because business owners simply don’t feel the such cutbacks would be noteworthy. But consider this: in 1987, American Airlines removed one olive from their first-class salads on every flight. That tiny change saved the airline $60,000. That’s a big difference to a 1987 bottom line. Imagine what that would translate to in 2020. 

So before you resort to cutting staff, try cutting some corners in these areas first.

Cancel subscriptions
A waiting room full of glossy magazines is nice, sure, but not at all necessary. In fact, cancelling your multiple print subscriptions can have a two-fold benefit to your business. The obvious one is the immediate savings. The second, is being able to engage clients in actions more relevant to your business, such as filling out digital questionnaires (to allow you to provide informed up-selling offerings), exposing them to in-salon marketing collateral, and therefore providing the opportunity for further spend.

Involve your staff
It’s easy for staff to view disposable products (such as gloves, wax strips, cotton buds, tissues) as being of little worth or consequence. However, educating them on the cost of, for example, overusing waxing strips, will highlight to them the additional hundreds of dollars per month that need to be paid out to keep the supply cupboard stocked. By creating an incentive programme, such as a small bonus or free in-salon service to the staff member that reduces the most waste, will get them onboard.

Laundry services
Towels, robes, face cloths. They need to be cleaned properly, yes, but have you looked into the amount you’re spending on laundering? Linen hire services that collect your dirty laundry and replace it with clean and pressed pieces is often cheaper than washing your own linen. Moreover, it can save you thousands in purchasing new linen each year.

Marketing collateral
Have you been getting all of your flyers, in-store promotion cards, price lists, etc, designed and printed at the same place since you opened? It’s time to shop around. Online services – many of which are free – will allow you to design the collateral yourself, while outlets such as Office Works or Vista Print offer regular deals for bulk printing.

Understand demand
Got a store room full of wax, serums or oils? Over-ordering stock chews up a lot of money and when it comes to the beauty industry, those products tend to have a use-by date that can’t be ignored. Ensuring that your forecast booking appropriately will help to ensure that your ordering is more in line with demand. And remember, buying extra stock simply because it’s a good deal, is still wasted money if the product is never used.

 

 

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