Promotions and discounts can be powerful tools for boosting sales and attracting customers to your salon or spa. Not every promotion and discount should be seen as negative; it's all about how you execute them. Not every promotion is created equal, and it's essential to understand how and when to run promotions effectively. In this guide, we'll explore the key steps involved in planning and executing successful promotions tailored to the unique needs of your business.

In every promotion you should ensure that you are covering these 4 essential steps

• Decide what you are trying to achieve, how you are going to measure and your targets

• Decide on the promotion vehicule, ie. money off, bundle

• Tell your customers about it

• Review the results

• Clear excess stock in specific lines or across the board

• Increase sales during a slow period

• Generate buzz on social media

• Discontinue a brand and clear leftover stock

In terms of KPI's and meassures, your objectives will also determine them. If you need to clear stock, the KPI should be % of sell out, a profit driven promotion should have a cash margin target, .

STEP 2 Types of Promotions

There are several types of promotions you can consider for your salon or spa:

1. Planned Promotions: These are the promotions that you would strategically design, for example to generate extra profit during slower periods or to create excitement among your customers.

   Bundles, multi-buys, and limited-time offers are popular options for planned promotions.
   They are promotions that you should engineer with the aim of generating added profit for the salon or spa. But what does that this mean?

   It is obvious that when you give a discount your profit margin % goes down. The question is, does this matter? If you are able to increase your unit sales so your cash profit ends up above where it would have been otherwise.

   Furthermore, your supplier should be happy to fund your promotion. Both of you will gain from the incremental sales and profit, so it makes sense that you share the margin cost. So if the discount you are given to your customers is going to be 20% for example, your supplier could give you a 10% discount on the cost price. In my experience, brands will fund only the units that were actually sold on the promotion, and do it through credit notes.

2. Stock Targeting Promotions: If you find yourself with excess stock that needs to be moved, stock targeting promotions can help. These promotions will often involve offering discounts on the slow selling lines, bundling slow-moving products with better-selling items, or multi buy offers such as Buy One Get One Free.

3. Cash Raising Promotions: In times when cash flow is tight, offering percentage discounts on select products or services or across the boear can help generate quick revenue. A discount that covers every product will be the easiest to promote and to be understood by your customers. However, these promotions are a blunt tool, and you will probably end up selling out on your regular bestsellers.

4. Staff Incentives: Engaging your staff by offering an added financial incentive for additional sales of slow lines or just incremental profit, could also support staff retention by increasing their take home

STEP 3 - Execution

Once you've identified your objectives and chosen the type of promotion that best aligns with your goals, it's time to execute your promotion effectively.

Promotions need to be...promoted. For sales to pick up customers need to be enticed. How you tell your customers, depends first and foremost on the type of promotion and your objective, and on the market you operate on. Nonetheless, generating a sense of urgency is never a bad idea. Or anchoring a promotion on a theme, it could "Winter is coming" or "Halloween" will facilitate talking to customers

STEP 4 - Review

As you go live with the promotion is always a good idea to record the exact amount of stock by line you have at your salon or spa, to ensure you got the most accurate base line.

Once the promotion is over you want to analyze the performance so lessons can be learn for the future. Did you hit your budget in terms of sales or proft? Did you manage to bring down your stock? Was the level of discount enough? Or was it too high that you overshot, and sold out too soon.

Conclusion

Running successful promotions in your salon or spa requires careful planning, effective communication, and ongoing evaluation. By understanding your objectives, choosing the right type of promotion, and executing your plan effectively, you can maximize the impact of your promotions and drive sales for your business.

If you need assistance planning or executing your next promotion, don't hesitate to reach out to us. At Retail Sales Services we are here to help you achieve your sales and profit goals and take your salon or spa to the next level.

How and When to Run a Promotion in Your Salon or Spa

STEP 1 - UNDERSTANDING YOUR OBJECTIVES

Before diving into any promotion, it's crucial to clarify your objectives. What are you hoping to achieve with this promotion? Are you looking to increase sales, clear excess stock, or generate buzz on social media?

Your objective should be the main determinant of the promotion vehicle you choose and the KPIs you use to measure its success. Here are some examples of possible objectives: