32. Do you need Salon Memberships?

For more help and info, go to buildyoursalon.com Hello and Welcome. Today we’re talking about Salon Memberships. If you’ve ever struggled with cash flow in your Salon, or to stand out from your competition locally, I think Memberships could be really helpful for you. So what I’ve got for you today is five pointers to set you on the right track: Pricing - What I can tell you is that from the customer’s point of view there needs to be a financial incentive. They’re going to need some kind of discount, but it doesn’t need to be as big a discount as you think. There is a certain amount of value that you can build in by making it feel like a club, like something slightly more exclusive that has value to it, so you don’t need to discount quite so much. A small element of your clientele will pay because it’s a predictable stream for them; it’s a lot easier for them to budget if they’re on a predictable monthly outcome. Tiered plans - Now if you’re only offering Membership in one form, I’m afraid you missed the point. What you’ve got is a really limited range which is appealing to a small amount of your clientele. It makes absolute sense for you to offer different Membership tiers. It’s still true that twenty percent of your customers will buy a premium version of your product or service if you make it available to them and it makes good sense value wise. So make sure that when you’re doing your Memberships you have more than one tier to offer them. Keep it simple, really simple - You have to keep it achingly simple, not only for your customers, but also to help your staff sell Memberships. The simplest way to do it I think is to make your Memberships unlimited. If you sign up to one of the Membership packages in my Salon, you are entitled to for example as many haircuts as you like in a year. Yes, it can feel a little bit scary but after a couple of months you start to find a pace and a rhythm with your spend and it’s a pace and a rhythm with your frequency of visit. Don’t be afraid, keep it simple. Leave room for upsells - In year one on our very premium version, you were allowed as many haircuts, hair colours, in Salon conditioning treatments and free retail products as you wanted. Now if you’ve got targets in your Salon one of those targets may well be on upsell. The problem was if you were coming in on my Premium range on my Memberships, there was nothing left to sell you. So we scaled back, took out a couple of those elements so that there’s still room to upsell and maximise profitability. Allow cancellations - It’s really tempting to sign people up in an iron clad contract and make sure that they’re paying you this retained income for the next twelve months. You need to check your regulations locally – here in the UK if you don’t allow people cancellations, the contract changes in nature and it becomes a contract of credit. There’s a lot more regulation around credit contracts, so make sure it’s an ability for your customer to get out of the contract if they really need to. I hope that’s been useful to you, throw your comments below if you’ve got any questions. If you haven’t subscribed already please hit subscribe now, I do a video like this every single Monday and I would hate you to miss out on the fantastic content that I’m sharing. If you’ve already subscribed I will see you again next week. Take care.