Did you know that 74% of businesses in the US are not profitable?

More specifically, salons and spas are not profitable.

Watch this video and see why we’re suffering and learn ways to get out of the hole:

Use this handout to follow along during the video training:


To recap, here are reasons why salons and spas often struggle… when they don’t have to!
1.) Prices are too low

When we base our prices on our clientele, our competitors, where we live, etc. that’s when we
lose profit. Your business is not the same as the one down the street. You don’t pay the same
bills as your clients. You must have set prices based on your business.

2.) Productivity is too low

As service providers, you are selling your time. You can’t get time back, or the money that was
wasted. So what can you be doing to make sure you’re not wasting time? Staying productive is
a must when it comes to revenue.

3.) Commissions are too high

If you’re in the salon and spa industry, most likely commissions are too high. There is no other
industry that pays higher commissions quite like the beauty industry. You’re employees need to understand that you’re there to make profits, not break eve.

4.) No retail

This is just another area where you could excel in. Retail is a huge profit center that will help
pay those bills. Another reason you should be selling retail is because of the client loyalty you’ll
be getting. When a client walks out with a product that they’ve purchased from you they’re more likely to return and buy it again.

And here are a few tips to bump up your profit:
What areas will you need to produce in?

If you watch the training in this post, you’ll see a Revenue Wheel. This is composed of all money-making areas in a salon. Look it over and set some goals for each team members to reach to create more revenue.

Create a goal-setting game for your team

Have them make a goal on how much they’ll sell in retail and sales that day and have them challenge themselves on how they’re going to reach that number. This is a great way for staff to stay engaged and get creative.

Is your salon selling additional services?

Always promote your other services throughout the customer experience. Is your front desk recommending add-ons? Are the technicians? Cross-promotion should be visible throughout the business. Create something beautiful to place at each station so that each guest can see what you offer. When they are sitting in your chairs, they are your captive audience for the duration of the visit. Maximize your time with them!

Retail = Profits

Retail sales typically produce 40% of net profits versus service sales which produce about 5%.

Is your salon selling additional services?

Create a tracking form and write down each day what you’ve sold and really see how much you’ve grown day by day. When you do this and actually see the progress, it becomes that much more satisfying.


You may be thinking that all of this is overwhelming to think about, but let’s start with the
basics. Knowing your numbers and where your money goes is the first step in planning for more profits. Download our Personal Budget Tool to get a sense of exactly where you’re spending your money.

Follow us on social!

Join our salon & spa owner Facebook group:

Follow us on Facebook:

Follow us on Instagram: