. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Beauty - Expert Panel
Valorie Reavis
Linkup Marketing
Suzanne Alcock Thompson
Education Director at Asu Nail & Beauty Supplies / Training Academy
"Ultimately, taking advantage of collective buying is an opportunity to drive new client traffic through the door rather than a revenue generator in itself.”
“Expecting to make boatloads of cash is setting yourself up for disappointment, but remember that selling your services for 50% and filling all your chairs with new clients is better than running your salon half empty.
"In the beauty world, many are still dubious about deal sites - are they positive or negative when it comes to the health of the brand, let alone cash flow?
"Some of this stems from beliefs about discounting in general, while others have just heard too many horror stories to want to jump on board. The fact of the matter is, it has worked for some and even helped them expand in tough times, not retract.
"There are several key points to making it work for you. Treat it as a sampling programme - a deal site gives you an opportunity to audition to potential new clients; while some of them will be discount junkies, some may be genuine.
"Be explicit in the small print - block out busy days and senior staff and put a time limit on the offer.
"Don't skimp on service just because it is a discounted service, this is an opportunity to shine so add in all the extras. It might be the first time a client has experienced a truly premium service and they could get hooked.
"Be generous in your client pack. Consider offering a series of vouchers that can be used on three separate visits to encourage clients to keep coming back.
"Don't be pressured into giving a huge discount as the site takes a huge share and you could be left with a quarter of what you normally charge.
"Also, don't forget your existing clients otherwise you could end up with deal envy, so think about running some rewards offers at the same time."
"Web business is a newformat of shopping. Thesewebsites send an email everymorning extremely early, usually 5am.”
"These websites can drive instant hits to your website, creatingmore traffic to it. They are a great way to get your business advertised especially if it is a new one or your salon or Spa is in need of some boosting.
"Nowadays everyone wants a deal so people will actually travel an extra few miles, andmaybe bypass their local salon, just to getmoney off. They can also help to build your database and get you extra footfall to your salon / Spa and clients might see other services andmay book extra treatments.
"However, with these sites youmust discount a treatment / service and then once the discount price is set, the deal company take a further 5%off the deal.
"So letme explain inmore detail - if I take a facial that usually cost €80, before any deal website will even work with you on the deal youmust discount it, usually by 50%. So now the deal is 'Facial for €40'. However, the deal website need to get their cut so they can take around 50%of the deal you offer, leaving you with only €20.
"Now once you start the deal it usually lasts about three to four days on the deal website. At any stage you can check to see how performance is and howmany have sold.When the deal is complete the deal website keeps the funds until the client comes to you and redeems the voucher. You then redeemthe amount owed fromthe deal website. They usually pay in three stages and often if the client does not redeemthe voucher then you get no payment and the deal website keep it.
"Themost important thing to look at is your situation; do you have cash flow to allow you to performservices that you don't get instant payment for? Can I afford to discount something as low as Ä20 for an hours treatment when that would cost the staff's wages, commissions and product used?
"My advice is to sell treatments that do not cost youmuch, sell treatments that are slower, sell treatments that are new, and try and offer a deal for certain days and times for example on slower days."
"My salon owner friend Fiona went down the web deal path, and when the company oversold her deal I decided that after years as a successful therapist andmanager, I would dig outmy uniformand help Fiona out."
"Fiona was having a very quiet day in her salon when she was approached by a nice rep who tempted her with an amazing offer. She could get exposure to a huge market and sell lots of treatments - brilliant! Fiona worked out that she could cope with 80 deal clients over a three month offer period, with an offer costing just 25%of its usual price.
"Unfortunately, the cap was ignored and suddenly Fiona had 300 people trying to book a cut-price treatment in a three-month space.
"The first problem was trying to give 300 clients an appointment when they wanted it now, not three months down the line. Suffice to say it wasn't a very good first impression.
"The second problem was fitting full paying clients in and, while not necessarily keeping the special deal price from them, not having them hear it all the time and get resentful.
"Discount groupies love a bargain. What they're after is not necessarily an amazing treatment, it's an amazing bargain. One client told me she and her friend have a competition to see who can get the most offers in a month. Another said her friend had bought her the voucher and she didn’t have any interest in the treatment.
"You will convert, but here's my tuppence worth if you're thinking about going down the web deal path.What you have to focus on is a standard service at a good price; the good price bit is what your web deal customers are after.What you offer web deal customers must seem like great value, so work on that (and ideally make it something that doesn't take up too much of your time). Think about adding something on that gives the client more value, and puts money in your pocket too.”
45
Susan Woodall
Phorest
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