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  /  Blog   /  Business & Profit   /  Increasing revenue in a challenging marketplace

The market place for the beauty industry has definitely changed in fact the changes are still happening and they are quite drastic.  For some this challenge is daunting and we have over the last year seen many salons and spas close their doors.

So before we look at ideas for increasing revenue in this evolving market place lets first agree on the facts. 

  1.  The Health and Wellness Industry is still one of the fastest growing industries worldwide.  In fact now more than ever before is the consumer looking for ways to decrease stress, stay healthier, get fitter and live longer
  2. The consumer has definitely decreased their spend when it comes to beauty services, they are still going but far less than before.
  3. The consumer is looking for quicker services that give instant gratification
  4. The consumer is still cleaning their skin and putting on moisturizer

One of the best parts of my job every single day is dealing with a large variety of different types of salons and spas from tiny small one room one therapist salons to huge 20 rooms and 20 therapist spas.  When given the task of increasing revenue and profit as well as get the staff more motivated I always start at the bottom.  Its called THE BASICS.  The scary part is that a large portion of the salons and spas out there are not getting the basics right, they are focused on fancy marketing plans, fancy social media strategies and very advanced training courses which are all needed but only and I repeat ONLY if the basics are in place.  Let me list the basics quickly and then we will look at a few ideas on how to increase your revenue in todays challenging market place.


This is one basic funtion that can dramatically change your business.  If you are not analyzing your business DAILY then I am not sure why you are in business in the first place.  The spreadsheet will grow as your business changes but the important items you need to see are a) total spend per client, b) service vs. retail % ratio, c) unsold hours percentage, d) specialized treatment bookings, e) complimentary and training hours, f) promotions sold, g) repeat guest ratios, h) most popular treatments and more.  From this you are able to make important decision on a daily basis to drive the revenue but without this you are sailing a ship without a map


The daily meetings are really 5 minute pow wow sessions to go over ever therapist plan and how you can increase what her forecasted revenue/upsells and retail is.  These daily plans and quick sessions HAVE TO HAPPEN.

The weekly meetings must be about sharing figures, guest feedback, training feedback and goals for the following week.  Don’t make these meetings a bitch session or boring where only you talk.


Stop the thought process that if the consumer doesn’t know the brand it won’t sell, rubbish, you and your team control exactly how the consumer will feel about the brand you are stocking.  So stock it because the margins are excellent and the brand partnership support is there NOT because it is a well-known brand.

If your product margins are good but the product is just not moving, call in your supplier, book training, promotions, do everything in your power to make it work first before you run and quickly change product ranges.


Managers and owners – have you booked your own training classes???  Why should you not be attending education classes for our industry and growing your experience and knowledge?  I cannot stress the importance of knowing how to run your business efficiently and effectively and you can only do this with additional education.

Book every single member of staff on refresher training for the product houses you stock.  Make it compulsory salon policy that they attend yearly and ensure to get feedback from them on their return.  I have a form I give staff where I ask them to list 10 new things they learnt at the training they attended.  This gives you an idea of what made an impression in their minds and then you can build and work on it.

Please do not assume your staff are adequately trained or they have been working with a product house for 20 years so they know exactly what is going on…..  Don’t be fooled, technology and ingredients progress quicker than we think and you can never ever know everything!


If you plan your promotional calendar with your staff and suppliers a year in advance it makes it easier just to simply implement the promotion every month or quarter or season.

Decide whether you will offer monthly, seasonal or quaterly promotions and then make each staff member in charge of that promotion, from the ordering of the promotional stock to the printing of flyers or posters to the sms the promotion message to clients to the incentives for the staff, etc.

This takes a bit of pressure off you to always do everything and you may be surprised at the pro-activity of your staff.  Always be sure to give parameters in which to work for example you can allow them to order the promotional stock but if it comes to higher than R2000 they have to get your approval.


When was the last time you planned an event for your business?

Yes it takes time, energy, huge amount of planning and begging people to attend but these events if done correctly will keep your salon/spa top of mind and keep your consumer loyal.  Plan a salon birthday cocktail function, a charity fundraiser, a 2 hour 40% sale, a bring a friend and win!   A WHATEVER…..  the point is do something, just one function per year where you go out of your way to do something more, different and bigger and get your clients involved and remember to give them adequate notice!


If you don’t already own a piece of equipment that generates high profit then you must seriously and carefully analyse your business.  The fact is that consumers WANT machines that produce results!  So act quickly and invest in a results driven machine.  If you are not sure what to choose as there is so much choice out there, we have a quick questionnaire that can help you make the correct decision for your business individual needs.


This is no doubt the MOST valuable operations asset you can give your business and the sooner you get down and complete this manual the better it is for all your staff.  This manual is the bible of your business and clearly outlines all service standards and clearly explains exactly what is expected of each staff member.  If I can motivate you to do ONE important change in your business I would like you to draw up your S.O.P manual.  Once it is done it will be of no value if you don’t train your staff on each procedure and implement strict evaluation systems.

There are 2 more points that are not so basic that you will want to consider and if I were you I would implement them sooner rather than later.


By get online I don’t mean get an email address I mean get yourself a website where your clients can buy product, they can buy vouchers and they can even ask you for advice online.  The more you interact and the more you are able to be in touch with your client while they are at work or at home the bigger your advantage.  Get yourself a strong social media campaign going with a professional that can get you the right audience not just a large following that does not produce turnover.  Get your salon/spa listed with on-site/on-location online booking applications that are really the way the market place is headed.  This will help fill your empty slots as well as give you the opportunity to get that consumer into your salon for the services they cannot have at their home or office.  If you need help with any of the above, we have a few options to share with you so get in touch with us.



This may sound daunting but the bottom line is you need to charge more when the demand for the service is higher.  It really is very simple and the consumer is starting to get used to this.  In order to do this efficiently and effectively though you need to have a thorough business analysis (point 1 of the basics) that you can analyze over a few months.  If the demand for treatments is higher after 4pm and on Friday and Saturday, then have a surcharge for treatments over those times or you can do it the other way around and have a big price increase now and then offer reduced rates for bookings that are not in your peak times.  Either way you need to charge more for services at peak times this will help towards filling up your quieter days.

Should you need any further assistance with any of the above points, you can email Marisa on