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Author: Steve B

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salon software

Encore Phase One Nearing Completion

Encore Salon Software logo

Encore Phase One Nearing Completion

We at Encore Salon & Spa Software, are excited to announce that phase one is nearing completion! The next step will be adding some of the more advanced features you might be expecting if you are or were an Insight user. You can help us decide how to proceed by completing the survey below. This will only be available for a limited time.

Get Started Now

Simply create your account with no credit card required.  It just takes a few seconds, and from there, you are ready to use Encore!

 

Coming from another management software? We provide data conversion services; speak to an Encore representative for details.

 

Simple, Logical Interface

We developed Encore Software with the user experience in mind! We made it as simple as possible for you to accomplish your objectives!

 

Book appointments and record client information in seconds. Send reminders and confirm appointments with emails or text messages. Set pop-ups to remind you of client preferences or to up-sell clients. Automatically create invoices based on appointment information.

 

From the management side, manage employee details and schedules.

 

Training and Support

As easy as Encore is, we are still here for you. Looking for advanced features or have a question about the software? Talk to a live representative! We have an experienced customer support team ready to provide assistance.

 

Encore Salon & Spa Software offers numerous features including appointment booking, client and staff management, inventory tracking, marketing tools, and point-of-sale. Encore makes it simple to get started and is even easier to use. Don’t delay; give us a call for a free consultation: 1-888-919-5841.

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management marketing salon software

What is a Good Salon Profit Margin?

What is a Good Salon Profit Margin?

What is a Good Salon Profit Margin?

Are you thinking of going out on your own to open a beauty salon? Chances are you’ve put some thought into the services you’ll offer, your niche in the market, and your target audience. Hopefully you’re also looking closely at the numbers. If you’re reading this, it’s a good sign you’re asking the right questions.

 

So, what is a good salon profit margin? Well, “good” is relative, but we can give you an idea of what to expect. From there, the sky’s the limit (just don’t expect to reach the sky immediately).

 

When looking at small owner-operator businesses in general, the average profit margin is about 8%. That number is slightly higher for salons and spas. You can expect your salon to make an average profit of around 9% to 10%. That is in contrast to other businesses like restaurants that maintain notoriously slim profit margins of only 2% to 5%.

 

That’s good news but shouldn’t make you overly confident. There are many variables at play when it comes to calculating profits.

Start-Up Costs

Most start-up businesses suffer in the early months due to underestimating the start-up costs. You’re probably thinking of the costs associated with the equipment you’ll need to outfit your salon. But it’s important not to forget those invisible costs that are less tangible and therefore are sometimes out of sight and out of mind. Those costs include licensing, legal fees, taxes, and insurance.

 

When creating a projected budget don’t forget that these fees will sneak up. Be sure to use calendar reminders for recurring expenses such as quarterly taxes. Nothing stings quite so much as the tax penalties you’ll incur at the end of the year if you forget about those pesky taxes. 

 

Whether you’re seeking a small business loan or have a few investors in line, you’ll want secure anywhere between $60,000 and $100,000 to get your salon off the ground.

Fixed Costs

One of the only things you’ll be able to predict and control throughout your early start-up days is your fixed costs. Your fixed costs are the business expenses that will stay the same no matter whether your business traffic increases or hits a slump. Rent is the most common example of a fixed cost. Annual salon advertising contracts and other agreements frequently billed monthly are other examples of fixed costs. And don’t forget about getting some good salon software to help manage your business!

 

Whatever your fixed costs may be, it is best to keep them as low as possible. Because you cannot predict how long it will take to build your business, keeping these costs low will help you weather the storm of a slow season or the early months when you’re carving out your unique business proposition.

Services

Realistically, we know you’ll have to keep prices competitive for some basic services as a tactic for attracting new clients. But not every service you offer needs to maintain a shoestring profit margin. It is helpful to know how much of a profit you are making on specific services and know how many higher-end services you’ll have to sell in order to boost your overall profit margin. 

 

For example, you may only make a narrow profit on a basic haircut, but for a more involved service like full hair coloring you may be able to charge more with very little extra expense. Your profit margin will likely be better on a service like coloring. By understanding the profit margin of specific services, you can create goals that will help you reach the overall profit you’d like to reach.

Retail

An overlooked area of your business that may generate a surprising amount of income is retail. By carefully selecting and being sure to actively sell the retail products you carry on your shelves, you can improve your margins more than you might expect. Generally, there is a 50% margin on salon products. This is the same as 100% markup, so if a product costs you $5, you sell it for $10. By remembering you’re not just selling services but also products, you can diversify your revenue streams. 

 

We recommend that you do a little homework when it comes to selecting your retail lines. Be sure you know the products your competitors are carrying and try not to overlap. Also, don’t get in a rut. Your clients will love being introduced to new products. Everyone loves to be the first to discover the latest craze. If you stay on top of trends in beauty care products, you can position yourself uniquely to your customer base. You’ll enjoy that 50% profit margin especially when business is waning. 

Conclusion

Hopefully these pointers give you a realistic idea of where your profits will be. But, speaking of fixed costs, marketing is one you don’t want to forget about as you write your business plan. Check out our previous blog posts to help you figure out how to create a marketing plan that won’t kill your profit.

What is a Good Salon Profit Margin?
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management

Reducing Energy Costs in Salons and Spas

reducing envergy costs to save the planet

Reducing Energy Costs in Salons and Spas

Being eco-friendly does not have to mean spending more money.

In fact, here are 6 easy ways to save money and to do your part in saving the environment at the same time!

 

  1. Some businesses leave their interior lights on even when they are closed. Save costs by turning them off! If you want to showcase your salon appearance, consider leaving just one set of lights on or getting a dimmer.

  2. Use LED (Light Emitting Diodes) bulbs in your salon or spa. Although they can be more expensive to purchase, they are more cost-effective in the long run than incandescent and fluorescent lights. They last longer, are more energy efficient, and do not cause heat build-up (it will reduce the need for air conditioning).

  3. Many modern thermostats have programmable features. You can set the heat or air conditioning to turn off after you leave and then turn back on in the morning so that the salon’s temperature is comfortable by the time you arrive. Save yourself the trouble of manually setting the temperature.

  4. Leaving appliances (hair dryers, curlers, straighteners, etc.) on standby can consume a lot of electricity. While it may take a moment to get warmed up after you turn it back on, you can take the minute to provide the client with a couple styling tips or to recommend a product.

  5. If any of your appliances require batteries, consider using rechargeable ones. Similar to LED bulbs, the initial cost may be higher however they will last longer and save you money over time.

  6. Turning off your salon’s computer every night is a simple thing that can make a difference over time. With Encore, all your information is stored securely on our cloud servers, so there is no need to leave your computer running.
reducing envergy costs to save the planet
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salon software

How to Select the Best Salon Software

Best Salon Software diagram

How to select the best salon software

Are you looking for a salon or spa management software but are not sure which one is the best salon software for your business? While it can be tempting to begin the search by comparing prices, you should not eliminate any options before examining the full package. Just as you might not get more value when spending more, you also may not add any value to your business if you take the cheapest option. Follow the steps below to help you narrow down your options.

Functionality of the Best Salon Software

ANALYZE YOUR BUSINESS’S CURRENT SITUATION

When researching software, you will want to ensure that it benefits, or at least maintains, your strong points and improves the areas where you may be struggling. Thus, the first step is to take a deeper look into your business and identify these strengths and weaknesses. Think about your internal processes such as appointment scheduling, payment processing, client follow up, inventory tracking, marketing, and performance reporting. Have you received multiple compliments or complaints in certain areas? Are there opportunities to improve efficiency?

 

For example when booking their next appointment, clients may request the same service provider as their last visit but can’t remember the stylist’s name. Depending on your current set up, you may not be able to easily determine this either. If this happens frequently, you may then want to get a software program that allows you to quickly retrieve a client’s service history.

FEATURES

Prior to looking at your various software options, try to prioritize potential features. Based on your business analysis, determine what functions are essential, would be nice to have, and is not necessary. Be specific when possible (e.g. must be able to set prices based on employee experience), but it is okay to be more broad if you are unsure about what exactly you need (e.g. need to manage inventory).

 

Next, research a few salon management software programs and compare them with your list. Does it have all of your essential features? Referring back to the business analysis, will the software improve your current process?

User Experience in the Best Salon Software

ACCESSIBILITY

With so many salon management software options available, you may be able to immediately narrow down your choices by determining whether you have a quick and reliable internet connection. If the answer is no, you will want to look at installed software. This means that the software program and all your data is stored offline and run directly from your computer. You will not need to rely on your internet speeds or on any online servers.

 

If you can rely on your Internet access, then the choice is yours between Installed or Cloud software. Cloud programs store your data online which can be accessed by nearly any computer from anywhere with an internet connection.

EASE OF USE

The next step is to test the user experience. Is the information neatly organized? Do the actions flow logically? Is it simple to use and learn? Although many software companies provide training sessions, you will want a program that is quick to learn especially if you have high employee turnover.

SUPPORT

With all technology, issues or questions may arise from time to time. But when this happens, will you be able to get timely assistance from the software developer? Will you be able to speak to a support representative over the phone, or are you limited to sending an email and hoping to get a quick response?

RELIABILITY

With all cloud-based solutions, reliability is an important consideration. Servers can crash, internet connections can break, and service providers can be flooded with traffic to disrupt their services. Make sure you ask potential software vendors about their historical down times and what back up plans are in place to deal with unexpected outages. You don’t want to be left stranded without access to any of your data for long periods of time.

 

Cost of the Best Salon Software

VALUE AND PRICE

By this stage, you will have already filtered out the software options that do not meet your needs and are now down to just a few options. Based on the software features, try to estimate the financial value you will receive from each software. Also, contact the potential software vendors to get a proper quote. With this information, you can now determine the true cost to you: the difference between what you pay (the price of the software) and the benefit you get in return.

 

For example, Software A’s automated marketing feature may bring in one extra appointment per week. Over the course of a month, those 4 extra appointments could increase your revenue by $200. The price of Software A may be $100 per month but with the new appointments, you will actually gain an extra $100 per month ($1200 over a year). Meanwhile, Software B may be significantly cheaper at $50 per month but if it does not attract more clients or increase sales, you will end up losing $600 in a year. While Software B is cheaper, in this situation Software A would be a much better choice for your business.

"The bitterness of poor quality remains long after the sweetness of low price is forgotten."

Benjamin Franklin

HARDWARE AND COMPATIBILITY

If you already have a computer and are not looking to replace it in the near future, you will need a program that can run on your existing computer. In order to save costs, you may also want to consider if your other hardware including barcode scanners, receipt printers, cash drawers, or payment terminals are also compatible with your salon software options.

 

Next Steps in Selecting the Best Salon Software

Choosing the best salon software can seem overwhelming, but it can be simplified if you take it step by step. Examine the features, consider the user experience, and compare the costs. Find the right balance between these three factors to select the best fit for your unique business.

 

Encore Salon & Spa Software will help you manage your appointment calendar, clients, employees, inventory, marketing, and more. The Encore experience has been designed to make your life easier and to save you time. 

Best Salon Software diagram
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salon software

Switching to Encore Software Made Easy

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Switching to Encore Software Made Easy

With Encore Salon & Spa Software, we are dedicated to providing you with an effective business management system. From getting set up to booking appointments and processing transactions, Encore makes it easy.

Set Up

Simply create your account with no credit card required.  It just takes a few seconds, and from there, you are ready to use Encore!

 

Coming from another management software? We provide data conversion services; speak to an Encore representative for details.

 

Simple, Logical Interface

We developed Encore Software with the user experience in mind! We made it as simple as possible for you to accomplish your objectives!

 

Book appointments and record client information in seconds. Send reminders and confirm appointments with emails or text messages. Set pop-ups to remind you of client preferences or to up-sell clients. Automatically create invoices based on appointment information.

 

From the management side, manage employee details and schedules.

 

Training and Support

As easy as Encore is, we are still here for you. Looking for advanced features or have a question about the software? Talk to a live representative! We have an experienced customer support team ready to provide assistance.

 

Encore Salon & Spa Software offers numerous features including appointment booking, client and staff management, inventory tracking, marketing tools, and point-of-sale. Encore makes it simple to get started and is even easier to use. Don’t delay; give us a call for a free consultation: 1-888-919-5841.

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marketing

Easy Back to School Marketing Tips for Best Results

Back to School Marketing Tips

Back to School Marketing Tips

Reaching Students

Students will be heading back to school in just a few weeks, so now is a great time to catch their attention with these Back to School Marketing Tips! They may want to be pampered with one last spa day before the summer is over. Perhaps they want a fresh look for the new school year. Or they may want to stockpile some beauty supplies. Below are a few ideas to draw them into your salon or spa:

  1. Advertise around the community. There are always new families moving into the area or students arriving to attend a nearby college, so make sure they know about you! To keep costs low, check for community bulletin boards at local libraries, grocery stores, schools, and other places around town.
  2. Post trendy or unique designs on your social media, on your website, and even in your salon. Catch your followers’ eyes and show them what you can do.
  3. Host a tutorial event for students. Teach them a few simple tricks for doing their own hair or painting their own nails. Remember to recommend some of your products to them. Offer a great deal for purchasing products or for booking their next appointment before they leave. If you are thinking long-term, plan to have a series of events and print off small cards so your attendees can invite their friends to the next event.
  4. Refer a Friend programs and group discounts are great for bringing in new clients. Give your clients a place to hang out with their friends or family. Provide them with a great experience and they will return with other friends too.

Turn Teachers into Clients

Back to school isn’t just for students; be sure to remember teachers as well. Teachers have a great influence on the people and the community around them. They invest their time and energy into their students and provide them with the education and skills to contribute to society. Show your appreciation to them:

  1. Have a monthly Teachers’ Appreciation Day. Offer them a discount, provide a free service upgrade, gift card, or double the loyalty points they receive from that day’s purchase/service.
  2. Bundle together a few of your retail products and promote them as a gift for teachers. Be sure to have a business card or a menu of services in the bundle and possibly even a coupon.
  3. Hold a contest. Have teachers enter a draw and have students/parents nominate teachers too. The prize can be a gift basket (see above) or it can be service-based, liked a free spa day. To make the contest go viral and ultimately increase your brand awareness, you can even offer a prize to the winning class. Everyone loves a pizza party!

Don’t forget the parents!

Back to school is also a time of change for parents. They may be worried for their child’s first day at school or they may be relieved to get the kids out of the house for a few hours each day. Either way, now that the kids are at school, they deserve to relax:

  1. Pick a weekday or a few hours when your business is typically quiet and offer a salon or spa special. You can draw in stay-at-home parents or even working clients who have a day off or who have flexible hours. This will help you fill your appointment book in the quieter parts of the day.
  2. Connect with the teachers and administration of nearby schools. Ask if you can provide a stack of coupons for students to bring home to their parents or explore the possibility of advertising in a school newsletter.
  3. Support the community. Consider sponsoring a youth sports team, hosting a block party, or giving back to a local charity. Build awareness of your spa/salon, all while making your community a better place. People will take note when you are investing in the future!
Back to School Marketing Tips
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gift cards marketing

Cross Promoting Your Salon or Spa for Growth

cross promoting

Cross Promoting Your Salon or Spa

Marketing & Sales

2 minute read

Looking to grow your client base? A great and inexpensive method is partnering with another business and cross promoting with them.

 

What are the Benefits?

Cross promotions will raise awareness of your business in a positive manner. Every business has built a trusting relationship with their loyal customers. When they refer those customers to your salon or spa, they are connecting their reputation with your business.

 

Partnering with another business can also reduce promotional costs. Split the cost when you advertise together or mail out promotional postcards.

Who Should I Partner With?

Your partner should either provide a different service/product to the same audience or serve a different target audience.

 

Think about your client’s needs and desires. Is there something that will complement the services you provide to them? For example if you run a hair salon, it may make sense to partner with a nail technician. Alternatively, you can team up with a business that serves a different target audience. Your clients may be interested in finding a quality barbershop for their husbands, and perhaps the barber has a few clients whose wives are looking for a new salon! Pay attention to your clients because they might give you some clues.

 

After identifying some potential businesses, you can then consider if the partnership will be balanced. Will their clients be similarly inclined to visit your business and possibly become loyal customers?

 

One caution is to ensure that your partnering businesses are in line with yours. Do they share a similar values? Do their prices align with your clients’ budgets? Remember that your clients trust that you have their best interest in mind.

How Do We Work Together?

  • Display each other’s business cards or brochures. Leave them in highly visible areas like the front desk.
  • Mention your partner when talking to your clients. You don’t need to make a sales pitch, but if you’re talking about a relevant topic, you can naturally mention the partnership.
  • Extend your reach by mentioning each other through your social media networks. Send an email to your clients on behalf of your partner and get them to do the same (be careful not to share your client’s information unless they have given you permission to do so).
  • Sell each other’s gift cards if your partner is targeted at a different market. For example, men at a barbershop may want to treat their wives to a spa day. By making it convenient for them to purchase gift cards to your spa, you will attract new clients without affecting the barbershop’s sales. If your partner is serving the same people, consider whether selling their gift card will cut into your own business’s gift card sales.
  • Bundle related products and services. If you are a hair salon, connect with a cosmetologist or nail salon. Assemble a range of retail products to bundle and sell. Create a wedding package so brides will easily find someone to do their hair, nails, makeup and everything else!
cross promoting
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gift cards marketing

4 Practical Ways To Skyrocket Your Gift Card Sales

Gift card in shopping cart

4 Salon Gift Card Promotions to Boost Sales

Marketing & Sales

3 minute read

Gift cards provide amazing opportunities to build brand awareness, encourage client loyalty, and win back customers. Take a look at a few ways to utilize them in growing your salon and spa business.

Build Brand Awareness

Method: Offer an incentive for gift card purchases

 

Primary target: Potential clients and their significant others

 

Communication: Targeted Facebook advertising, cross promotions

 

Often, the greatest challenge for a new salon is to get people through the door so that you will have an opportunity to wow them and convert them into a loyal client. Especially around the holiday season, gift cards are valuable for attracting new clients. While gift cards are consistently the most-requested item on holiday wish lists, it can be a challenge to push your salon’s gift card to the top of that list.

 

When targeting potential clients (or their significant others), consider boosting a Facebook post to your ideal clientele based on demographics (gender, age, etc.) and interests. Another option is to partner with another business which serves your intended audience. For example, men frequenting a barber shop would appreciate the convenience of purchasing a gift card to a salon for their spouses.

 

Whichever channel you choose to use, showcase your salon brand and offer an incentive to entice them to purchase right away. It could be a free hair product or nail polish to be used as a stocking stuffer. Or you can sell $100 gift cards for just $80.

Raise Engagement

Method: Run contests for gift card prizes

 

Primary target: Everyone

 

Communication: Social media, email newsletters, text messages, cross promotions

 

Everyone loves free stuff! Even people who aren’t within your target audience may enter to win for a friend or share your post with their own social networks. Either way, it is a great way to build brand awareness, keep current clients engaged, and win back lost customers!

 

There are many ways to run the contest: selecting a random client who visited your salon this month, choosing a random person who shared one of your Facebook posts, or having people nominate a friend or family member who deserves a makeover or a spa day.

 

The gift card gives the winner the flexibility to select how they wish to utilize the prize from selecting specific services or bringing a friend with them. Gift cards of lower values can also be used as secondary prizes as well. More chances to win will likely encourage more people to enter the contest.

Gift card in shopping cart
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Increase Client Spending

Method: Encourage additional spending by offering free gift cards

 

Primary target: Existing clients

 

Communication: Signage within the salon, email newsletters, text messages, social media

 

Gift cards can be a great way to say thank you and an incentive to increase client spending! The key to making the most of this promotion is to set a necessary spend level to be slightly higher than the average client’s invoice amount. Clients will then need to purchase an add-on service or product in order to reach it. This opens the door to get them hooked on to new services or add-ons, thus increasing their spending for future appointments as well.

 

In addition to the immediate revenue boost, you are also providing an opportunity for clients to spoil themselves when utilizing the gift card at their next visit. When paying with a gift card, many people opt to purchase something that they would not normally spend their own money on. But even if they stick with their regular services or products, you are still building a positive relationship between your salon and the client.

Build Partnerships

Method: Negotiate prices for bulk gift card orders

 

Primary target: Businesses

 

Communication: Networking with business owners and managers

 

Over 80% of businesses use gift cards as an employee incentive, according to GiftCards.com. Talk to people that you already know (start with existing clients, family/friends, and surrounding businesses) and promote your gift cards as an excellent reward or present. If they are interested in purchasing a bulk number of gift cards, you can negotiate a special rate as, realistically, the full value of the gift cards will probably not be used. However the more they are used, you will have more opportunities to win over new clients.

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