Retention is the key to salon/spa profits in 2007

Did you know that for every 5% you increase retention your bottom line increases 1%????

Retention is the key to profits for 2007!

If you can get your new customer retention up to 50% plus and rebook 2 out of every 3 customers before they leave you will be in the top 5% of the industry in retention and net profits. The key to making money is getting your present customers in more often and getting more of your first time customers in developing a habit of visiting your salon and spa.

What are you doing right now to make sure customers are rebooking?

Here is the strategy we came up with to increase Perfections retention and rebookings. Create a business size card with the offer of $10 off your next retail product purchase on your next visit and only give it to the customer if they prebook their next visit! Here is how the business card sized tool works: EVERY CUSTOMER that checks in gets this card when they check in at the front desk. This gives them time to read the card and experience the service and make a decision to rebook before leaving. When the customer checks out the receptionists or service provider asks if the customer wants to activate the card (not do you want to rebook the appointment). Supporting documents include a table talker (sign) at each station like the front of the card and the MIKAL receipt printing automatically with the marketing message and the next appointment date/time printing.

What makes this idea GREAT?
– The rebooking increase retention and profits
– The offer is for the NEXT visit
– The give away is Retail so the staff can’t complain
– The give away gets the customer to experience retail another great habit for the customer to develop

Want more Cash Flow ideas?

Check out Gary Ahlquist’s cash flow web site at http://www.saloncashflow.com/cmd.php?af=496738

Download our FREE Frequent Buyer Program at
http://24.123.10.107/wwwmikal/mailpdf.asp?code=m5

Download our FREE Mikal Marketing Calendar at
http://24.123.10.107/wwwmikal/mailpdf.asp?code=m7

Want even more business building ideas?
Check out all the information at www.mikal.com

Need Software that MAKES YOU MONEY instead of counting BEANS?
Call us at 800-448-5420 just spend 15 minutes looking at how our system
will make you money and we will give you a Salon/Spa Policy Manual on
CD worth $59 – what do you have to lose?

The MIKAL Corporation
www.mikal.com
sales@mikal.com
800-448-5420

TIP reporting is a GREAT IDEA!

TIP reporting is a GREAT IDEA!

That's right. Tracking and reporting tips is a great idea compared to the alternative. Most salons and spas are not tracking tips and to "disrupt" the potential IRS audit trail are doing crazy things like not allowing tips on credit cards.

First this will not hinder the audit. The IRS will look at the credit card receipts and expect the staff and salon to withhold a percentage (about 8%) of service sales as tips - no argument allowed!

Second to not allow tips on credit cards reduces tips substantially. Everyone knows tips are higher on a credit card than on cash payments - many times TWICE as much.Let's do the math:As a stylist you only take cash. You have a $1000 service sales week and end up with an average of 8% tips. That means you make $80 in tips.Another stylist accepts credit cards and 80% of the payments are made with the card. The tips average 20% of service sales. That means the tips would be up to $200 on the same $1000 in service sales. If the IRS gets 30% of the money the stylist taking credit card tips still clears $140 instead of only $80 (that still needs the taxes taken out).

C: Maybe you think cash customers tip more than 8% - track it for a week and tell me I'm wrong. In fact in some salons that have gone to no tips on credit cards customers literally don't have the cash to give a tip - how much cash is in your wallet rignt now?

Do the math and think about it. Be IRS compliant and make more money or .........What do you think? Fred


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