salon & spa industry an introduction florida state university tues 7 oct 2014 martin edwards |...
TRANSCRIPT
Salon & Spa IndustryAn Introduction
Florida State UniversityTues 7 Oct 2014
Martin Edwards | Director of Marketing
Presentation Overview
o Industry & Demographics
o Business Type and Models
o The “Average” Salon
o Measurements for Success
o Customer and Behavior
o The Rise of Technology
o An Introduction to SalonBiz
o Questions
Industry, Market & Opportunity
o 80,000 establishments in the US (76,000 hair/beauty salons; 4,000
barber shops)o Combined annual revenue of approx. $20 billion* o Industry CAGR projected at 3.4% thru 2018**o US industry highly fragmented: the 50 largest companies generate
about 15 percent of overall revenueo California has more salons than any other state, followed by Florida,
Texas, New York and Illinois* o In 2012, 35% of US salons featured some form of a booth rental
model, with studies suggesting that this will exceed 50% of salons
by 2015*
Source : *PBA Annual Study 2014 **Lucintel Research
Types of Business
o Hair Salono Salon & Spao Spa (Stand alone or Hotel/Resort)o Booth/ Suite rentalo Mobile
A Typical Salon
o An average salon employs 8 people, 2 of which are support staffo Generally owner operator managedo Across all professional beauty businesses, the majority (34.1% for
the industry on average) are in the $100k to $250k range for total
revenues (retail plus service sales) with the average being just
over $250k. o Typically, around 68% of revenues come from hair services and
11% from retailo Profit margins average at 10.7% nationally. o The average client spends about $67.17 per visit on services and
will visit on average 8-12 times per year. For retail purchases, the
average is $20.55 per visit
Measurements for Success
o Monitoring and coaching the team is key to ensuring overall
successo Keeping the largest single expense productive is essential
80%$65
70%50%30%
1500 $15
33%
Healthy
Expense Benchmarks
o Controlling payroll expense is key
o Supplier relations important
o Minimize marketing spend
o Software not a large expense
Customer & Behavior
What the Salon Would Like Customer’s Natural Behavior
Pre-book next appointment Rush to leave and will call later to rebook
Purchase recommended homecare products
Will just wait and buy them next time, or pick something up in
the grocery store
Refer all their friends Keep their amazing stylist a secret all to themselves
Use the services of the spa for nails, waxing or massage
Go to their favorite place for each
of these services separately
The Rise of Technology
What does SalonBiz Provide?
AppointmentScheduling & CRM
Marketing & Communications
Reporting
Point of SaleInventoryControl
Unlimited Education& Technical Support
Features
Full Salon & Spa Management Softwareincluding Inventory, POS, Scheduling & CRM
Mobile Access inc Booking for Owners, Managers & Service providers
Powerful, flexible Custom Report Suite Consumer Online Booking & Gift Card Sales
Features
Tablet Tool – Rebook and recommendProduct at the chair/spa room
Performance Board – Break room display
Central Dashboard – KPI’s displayedIn an easy to digest format
Integrated Credit card processingWith Chase Paymentech
Demandforce Integration
Appointment confirmations by SMS & Email Collect and distribute reviews
Email Marketing & Communicationwww.demandforce.com
Why SalonBiz?
Cloud Basedo Access from anywhereo Hardware agnostico No backups required
o No server costs
SalonBiz Mobileo Booking on the go
o Keep an eye on key metricso View client history to prepare for visit
o Update important client notesSalonBiz Whiteboard
o Transparent performance statisticso Ideal for in-the-moment coaching
o Keep stylists away from the front desko Removes need for extra lookup station
Inventory Controlo Track product usage to limit waste
o Control par levels to manage stockholdingo Save time when ordering
Integrated Credit Cardso No terminal required ($$)
o Better rates than many bankso Quicker checkout for client
o Speeds up batching at end of day
Tablet Toolo Recommend retail at the chair
o Rebook from the chairo Update client details
o Reduce bottle neck at the desk
Demandforceo Save time on confirmation calls
o Reduce no showso Reach new guests
o Gain Important feedback
Online Booking & Gift Cardso Stay open 24/7
o Generate additional revenue around holidayso Less phone calls to front desk
Reportingo Track performance
o Identify opportunitieso Save time on manual process
Questions?
www.salonbizsoftware.com
888-634-5570 x 2510