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It’s tanning season! Salons have reopened (pretty much everywhere) and to make your season a more profitable one, I am offering a list of three basic ways you can increase your sales. These are going to sound like no-brainers, but take a look at each one individually, and then ask yourself, “am I already doing everything I possibly can to achieve this?” If you’re not, read on. Here they are:
1. Increase your customer count.
2. Increase your per-transaction amounts.
3. Increase the frequency of transactions per customer.
Focus on these three “no-brainer” goals every day and watch your revenue climb!
Let’s dig into what you can do TODAY to make these increases happen.
The annual per-tanner average is around $125. I know you probably think there is no way, that’s so low. This number is an average of unique customers – so, not only the person who came into the salon once and used a “free tan” card, but also your year-round big spenders. To determine your PTA (per tanner average), divide your annual revenue by the number of unique customers. Say you want to increase your annual revenue from $375,000 to $450,000. Using a PTA of $125, you would need 600 more unique customers, an average of about 50 new customers per month.
Do you have “free tan” cards? The best one gives new customers a free week of services. Even better, have your staff write their name on them as “referred by” and if that new guest purchases an EFT or a package, the employee makes a commission. Great incentive! I also love “Friends Tan Free” (some call it a “Buddy Pass.”) This is designed for tanners who have your premium membership. They can bring a friend to tan for free (base level) which not only gives top-tier guests a reason to keep their package, but the “buddy” will eventually need lotion and eyewear and want to start coming in on their own, not around their friend’s schedule, which encourages them to purchase a package.
A simple way to increase transaction size is to pick a “maintenance item of the week” to be your sales staff’s focus. It makes it extremely simple for them, if the “maintenance item of the week” at Lisa’s Tanning Salon is Coconut Krem Daily Moisturizer, every team member would know that no matter what the transaction is, it could be just new eyewear, a tanning lotion or an upgrade, they are going to introduce the guest to Coconut Krem – its benefits and the deal the salon has going for that product. It’s actually much easier to add a product to a current sale, so having a pre-set maintenance item of the week (tattoo stick, moisturizer, body wash, etc.) not only ensures your staff is talking about it, but also helps increase the transaction size.
The “how to” on increasing transaction frequency works much like increasing the transaction size, although this method is for guests not already purchasing something. Try choosing a “talking point of the day.” It can be a sunless session, an equipment upgrade, a lip balm, a hand sanitizer you sell, basically anything and it changes every day. When guests come into your salon to tan and already have their lotion, you have a talking point and an item to attempt to sell them. Let’s say the talking point of the day is Selfie Instant Body Bronzer. Every guest is asked if the staff has shown them how amazing the product is, then the staff can explain the features and benefits of the product (or service) and hopefully, make a sale. The daily talking point can be as simple as “new eyewear” and explaining the importance of changing it every six months. There is no need to over-complicate it! When staff has a clear talking point to discuss with every non-purchasing guest, it helps increase the frequency of transactions per user.
These concepts are simple; but without preparation and execution, they will not be effective. There is no better time than the present! Focus on these three “no-brainer” goals every day and watch your revenue climb!
As Director of Brand Development for Devoted Creations’ family of brands, Lisa brings 17 years of industry experience, knowledge and enthusiasm to all aspects of the business, including social media, product development, training, customer relations, public speaking and marketing strategies. Lisa worked at the salon level managing a large chain of salons, which infuses her sales training and brand concepts with real world experience. Lisa has been chosen IST Magazine’s “Person of the Year” four times.
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