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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.

Encore Salon Software logo
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If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

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If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

Try Encore Now
Categories
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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If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

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If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

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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
Recent Posts
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If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

Try Encore Now

If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

Try Encore Now
Categories
salon software

Switching to Encore Software Made Easy

Encore Salon Software logo

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.

Encore Salon Software logo
Recent Posts
Tag Cloud

If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

Try Encore Now

If you are not already using Encore Salon & Spa Management Software click here to try it now for FREE

Try Encore Now