How to run a successful salon business. No More Discounts!

I didn’t get a discount?
I went to the dentist last week, and I didn’t get a discount!
While I was at the dentist I had the car cleaned and when it was time to pay no discount!
After the dentist I got a coffee at Starbucks no discount there either!
Then I went to the bookshop and bought a book still no discount…
When I got home I went online and booked a flight and a train …still no discount!

I’m sure you can see where I am going with this…

Why do salons discount?
In my role as a salon coach the subject of discounts frequently comes up and for whatever the reason hairdressers often feel guilty about charging people the right price and want to give them a discount!

I know that for many people the last few years have been tough financially and perhaps that is why discounts have crept in… But in many cases it’s now out of control, the profits gone and in some cases the viability of the business is under threat!

One salon owner I work with who was suffering from what I call “Discount creep” got all the staff to give him a list of all the clients who were getting a discount and why they thought they should get it. The end result was that many of them were getting a discount for all the wrong reasons so they were stopped, predictably it made an instant and significant difference to his bottom line and profitability of the salon.

Are there exceptions?
You might be doing a specific promotional offer, that’s different. You might have specific situations like…

We offered a lower price on Monday or Tuesday with a new stylist
The blow-dry client who promised to come every week but at a reduced price…

Not because he or she’s a local, not because they work in a shop down the road [unless they’re is some specific cross promotion involved]
Not because he or she refers people, if that’s the case give the client a referral card so they get a proper discount when a new client comes in and you get an actual client!

Not because YOU think they can’t afford it or because they’re your friend…

One rule should be that any discount should be authorised by the owner, it cannot be left up to the team to determine the price.

Decide on what you are worth and be confident about charging that price! It’s up to the client to decide if you’re worth it and if they can afford it!