Why SalonBiz? - Florida State University

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Salon & Spa Industry
An Introduction
Florida State University
Tues 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 An Introduction to SalonBiz
o Questions
Industry, Market & Opportunity
o 80,000 establishments in the US (76,000 hair/beauty; 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 revenue
o 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 Salon
o Salon & Spa
o Spa (Stand alone or Hotel/Resort)
o Booth/ Suite rental
o Mobile
A Typical Salon
o An average salon employs 8 people, 2 of which are support staff
o Generally owner operator managed
o 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
retail
o 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 success
o Keeping the largest single expense productive is essential
Healthy
80%
$65
70%
50%
30%
1500
$15
33%
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
What does SalonBiz Provide?
Appointment
Scheduling & CRM
Reporting
Point of Sale
Marketing &
Communications
Inventory
Control
Unlimited Education
& Technical Support
Features
Full Salon & Spa Management Software
including Inventory, POS, Scheduling & CRM
Powerful, flexible Custom Report Suite
Mobile Access inc Booking for Owners,
Managers & Service providers
Consumer Online Booking & Gift Card Sales
Features
Tablet Tool – Rebook and recommend
Product at the chair/spa room
Central Dashboard – KPI’s displayed
In an easy to digest format
Performance Board – Break room display
Integrated Credit card processing
With Chase Paymentech
Demandforce Integration
Appointment confirmations by SMS & Email
Email Marketing & Communication
Collect and distribute reviews
www.demandforce.com
Why SalonBiz?
Demandforce
Cloud Based
o Access from anywhere
o Hardware agnostic
o No backups required
o No server costs
Inventory Control
o Track product usage to limit waste
o Control par levels to manage stockholding
o Save time when ordering
o Save time on confirmation calls
o Reduce no shows
o Reach new guests
o Gain Important feedback
Tablet Tool
Reporting
o Recommend retail at the chair
o Rebook from the chair
o Update client details
o Reduce bottle neck at the desk
o Track performance
o Identify opportunities
o Save time on manual process
SalonBiz Whiteboard
o Transparent performance statistics
o Ideal for in-the-moment coaching
o Keep stylists away from the front desk
o Removes need for extra lookup station
Integrated Credit Cards
SalonBiz Mobile
o No terminal required ($$)
o Better rates than many banks
o Quicker checkout for client
o Speeds up batching at end of day
o Booking on the go
o Keep an eye on key metrics
o View client history to prepare for visit
o Update important client notes
Online Booking & Gift Cards
o Stay open 24/7
o Generate additional revenue around holidays
o Less phone calls to front desk
Questions?
www.salonbizsoftware.com
martin.edwards@neilltech.com
985-507-6769
888-634-5570 x 2510
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