Business Fundamentals

CHAPTER 3
AVERAGE TICKET
The next KPI we’re going to look at is Average Ticket. This is total ticket dollars, service, and take-home combined. In this example the average ticket is $50. If we wanted to increase that to $60, how would we do it?
Boosting the average ticket requires that clients spend more money per visit in the salon. There are several ways to increase your average ticket. One of the best ways is to implement a system for add-ons or upgrades.
Movie 3.4 Average Ticket
Average Ticket
Number of Active Guests
New Guests Per Month
Average Ticket $50
Frequency of Visit
First Visit Guest Retention
10 10 10
6 6 6 32% 32% 32%
Guest Total (New) Guest Visits (Total)
Year 1 Year 2 Year 3
150 166 179
$60 $60
166 179 191
995 1,076 1,145
Total Sales Generated $49,770 $64,589 $68,725
50


CHAPTER 3
NEW GUEST RETENTION
The next chart we’re going to look at is for First-Time Client Retention. Retention is about retaining the client, having the client come back to us again. Retaining clients is one of the most important components of a successful business. After all, there are costs associated with obtaining new clients, and to lose them results in not only lost revenue, but makes your entire marketing strategy a waste of time.
In this example, we are looking at the retention of specifically first-time clients. So, a guest comes in for the very first time–a new guest. This KPI tells us whether or not she comes back again, if she gives us a second chance. In this example, first time client retention is 32%. This is industry average. But, we want to see if we can get it to 40%. This would mean getting 4 out of every 10 new guests to come back again? How do we do that?
Movie 3.5 Retention
Retention
Number of Active Guests New Guests Per Month Average Ticket Frequency of Visit
10 10 10 $50 $50 $50 6 6 6
Year 1 Year 2 Year 3
150 166 189
First Visit Guest Retention 32%
40% 40%
Guest Total (New) Guest Visits (Total)
166 189 209
995 1,134 1,252
Total Sales Generated $49,770 $56,705 $62,599
51


CHAPTER 3
ALL THINGS CONSIDERED
Okay, so we’ve looked at what type of growth you could have if we made some changes and increased each of the KPIs listed on the top of the charts. We saw some nice results, but remember, we only looked at the growth from one KPI at a time. The next chart shows the growth if you could increase all KPIs at the same time. Let’s look at the chart entitled All Things Considered.
All Things Considered
Movie 3.6 All Things Considered
Guest Total (New) Guest Visits (Total)
Year 1 Year 2 Year 3
Number of Active Guests
New Guests Per Month 10 Average Ticket $50 Frequency of Visit 6 First Visit Guest Retention 32%
150 166
166 237
237
20 $60 7 40%
20 $60 7 40%
297 2,082
995 1,659
Total Sales Generated $49,770 $99,546 $124,934
52


CHAPTER 3
YEAR-OVER-YEAR GROWTH
This is that six figure income we mentioned at the beginning of this chapter. Is it possible? Yes, the charts show that it is 100% possible. Is it going to be easy? Heck no, it’s not going to be easy! If it were easy, everyone in the industry would be doing it. It’s going to take a lot of work, commitment, and determination to reach this level of success.
Unfortunately, what tends to happen is that stylists begin realize how much work these systems require and begin making excuses for why they have quit following them. "Oh, Mrs. Smith comes in every week, so she doesn't need products." Or, "This client is a man, so I don't have anything to add on to his service." Or, "She can't afford it." Or, "He doesn't like products." Or, She doesn't want color." This list goes on and on. We have to follow the system with every guest, every time, or we won’t get the results we’re looking for. You’re not expected to get 100% of your guests to say yes to everything, but if you
Year Over Year Growth
Number of Active Guests
New Guests Per Month 10 Average Ticket $50 Frequency of Visit 6 First Visit Guest Retention 32%
Year 1 Year 2 Year 3
150 166 237
ASK 100% of your guests, you will have more of them saying yes than if you don’t ask at all.
Movie 3.7 Year Over Year
53
Guest Total (New) Guest Visits (Total)
20 25
$60 $65
78
40% 42%
166 237 327
995 1,659 2,620
Total Sales Generated $49,770 $99,546 $170,281


ACTION ITEMS
In order to ensure success in this chapter, watch the videos in the previous chapter and share them with someone of importance in your life. This will help hold you accountable and move one step closer to your goals.
Tap on the following link to take you back.
Business As Usual Video
New guests Video Frequency of Visit Video Average Ticket Video Retention Video
All Things Considered Video Year Over Year Growth Video
Average Ticket
CHAPTER 3
54
New Guest Retention
Dollars and Sense
Key Performance Indicators
Attracting New Guests
Frequency of Visit


REVIEW
Interactive 3.1 Chapter Review
CHAPTER 3
Tap and test your comprehension of the chapter
55


FUN & GAMES
Interactive 3.2 Crossword Interactive 3.3 Word Search
Interactive 3.4 Puzzle Interactive 3.5 Hangman
CHAPTER 3
56


VANGUARD
PROFIT GENERATOR
Taking a look at the profit-generating areas of your business
CHAPTER 4




CHAPTER 4
PROFIT GENERATOR
Taking a look at the profit-generating areas of your business
Benchmarking is the process of comparing your business processes and key performance indicators to industry bests. The purpose of the Salon Profit Generator benchmarks is to provide you with direction in growing your business. Measure your growth against industry standards. Set realistic and achievable goals. Take the emotion out of your decision making. Focus your efforts into specific areas to help you achieve the greatest results possible.
Movie 4.1 Profit Generator Intro
59


CHAPTER 4
PROFIT GENERATOR
What it is:
A generator, by definition, is a machine designed to convert energy into electricity. The Salon Profit GeneratorTM is designed to convert your energy into optimal income, or profitability. It
consists of seven distinct profit centers that can be
scaled for an individual or salon of any size.
How it works:
The Salon Profit Generator leverages seven distinct profit centers that enable salon professionals to attain optimal profit potential.
Biz 101:
The fundamental objective of a business
is to attain and retain customers for the benefit of financial gain, or profit. Every business is comprised of a variety of departments or functions, each with separate responsibilities and each contributing to the overall success of the business. The service desk, inventory control, accounting,
and education are just a few examples of essential functions of a business. Each will either be classified as a cost center or profit center.
Why it is important:
Businesses’ profit centers must be managed properly to ensure they do not become cost centers. Creating separate profit centers within a salon allows management to evaluate the profitability of each operating unit. Attaining optimal income or profit potential is a
matter of managing each profit center in the most efficient and effective manner possible. Not doing so leads to lackluster
financial outcomes, such as increased costs, poor cash flow, and eventual business failure.
Cost Centers vs Profit Centers:
As stated above, each department or function of a
business is classified as either a cost center or profit center. Cost centers generate only costs and have no
opportunity to generate revenues. Accounting and human
resources are good examples of cost centers. Profit Centers also generate costs but have the
opportunity to offset said costs by generating revenues. When managed efficiently, revenue exceeds costs. The difference between the two is either a profit or loss.
Biz Definitions:
Profit center - A function of a professional salon that generates revenues and costs; yields either a profit or
loss.
Cost center - A function of a professional salon that is responsible for costs; yields only loss.
60


PROFIT GENERATOR ROAD BLOCKS
Roadblocks will hinder growth and bring progress to a screeching halt. It’s important to identify potential roadblocks so that you will be aware when they show up and can do something about them.
Product: Product waste is a major roadblock to growth. There
is a cost associated with every drop of product you use.The more you use, the higher your costs are. If you are being
excessive in the amount of color you mix, and you are pouring color down the drain everyday, your product costs will soar. This cuts into your revenue which means less money for you.
In the following chapters, we will identify the growth roadblocks in each profit center so that you can avoid them as you build and grow your career.
CHAPTER 4 SECTION 1

Three major roadblocks
Time: Being successful as a salon professional means
understanding the importance of time. Poor time management– taking too much time to deliver a service–could end up costing
you thousands of dollars over the course of a year. Let’s say you work 8 hours in a day, and you take one hour for lunch. You can only actually sell 7 hours of service in one day. If it takes you one hour to complete a haircut, then you can do up to 7 haircuts in one day (7 hours). If you charge $50 for that haircut, then you can generate up to $350 in that day. ($50 x 7). Now, if it takes you longer than an hour, say an hour and a half, then you can only do 4 haircuts in that time (4 x 90 minutes = 6 hours...not leaving enough time for a 5th haircut). This would allow you to generate only $200 in the same amount of time (4 x $50). Over time, this really adds up.
Opportunities: Every guest is an opportunity. An opportunity for
an additional service. An opportunity for a take-home sale. An opportunity to book another appointment. An opportunity to
create magic. An opportunity to educate. An opportunity to gain a referral. Successful professionals seize each of these opportunities. If you miss any of these opportunities your career will not grow at the rate at which it could.
61


CHAPTER 4
PROFIT GENERATOR SERVICE CYCLE
The Profit Generator Service Cycle is the global approach to growing a sustainable business in the professional beauty industry. We have taken the individual profit centers and organized them in the order that guest should engage with them. As illustrated by the image on the right, the order is as follows:
Reservation Desk Color Bar
Tool Bar
Social Commerce
Styling Station Wash House Take Home
In the coming chapters, you will discover the exact steps needed to be successful within the Profit Generator Service Cycle.
62


CHAPTER 4
BENCHMARKS
Benchmarking is the process of comparing your business processes and key performance indicators to industry bests. The purpose of the Salon Profit Generator benchmarks is to provide direction in developing your career and growing your business. Measure your performance against industry standards. Set realistic and achievable goals. Take the emotion out of your decision making. Focus your efforts into focused areas to help you achieve the greatest results possible.
The benchmarks we have compiled, when achieved, will ensure double-digit profit.
63


Reservation Desk
Make sure your guests are coming back. “Pre-Booking %” illustrates how well you are doing at getting guests to
schedule their next appointment before they leave the salon.
To Calculate Pre-Booking Percentage:
Total Pre-Booked Guests ÷ Total Service Guests(transactions) = % Pre- Booked
Styling Station
“Average Service Ticket” number tells you how much service revenue that is produced on average for each guest receiving services. This is important because it shows how good you
are at up-selling services to your guests.
To Calculate Average Service Ticket:
Total Service Sales ÷ Total Service Guests(transactions) = Average Service($)
CHAPTER 4
Month
Total Pre-Booked Guests (#) Total Guest Transactions (#) % Pre-Booked
60
100
60%
Month
Total Service Sales ($) Total Service Guests (#) Average Service
4,500
100
$45.00
64


Color Bar
Hair color services should be a major part of your service revenue. “Color % of Service Sales” is expected to be 50% of total hair service sales. This number is vital because hair color guests
are more loyal and visit the salon more times per year.
To Calculate Color % of Service:
Total Color Sales ÷ Total Hair Service Sales = Color % of Service
Wash House
Upgrade, Upgrade, Upgrade! Track your Wash House upgrade efforts. “Treatment % of Service Transactions” is
expected to be 20% of total service guests. This indicator shows how well you are utilizing the Wash House as a profit center.
To Calculate Treatment % of Service Transactions:
Total Treatment(transactions) ÷ Total Service Guests(transactions) = Treatment % of Service Transactions
CHAPTER 4
Month
Total Color Sales ($) Total Service Sales (#) Color % of Service
$2,250
$4,500
50.0%
Month
Total Treatments(#)
Total Service Guests (#)
Treatment % of Service Transactions
20
100
20%
65


Tool Bar
Tool Bar sales need to play an integral role in your overall Take Home revenue totals. “Tools % of Take Home
Transactions” is expected to be 5% of total Take Home transactions.
To Calculate Tools % of Take Home Transactions:
Total Tool Transactions ÷ Total Take Home Transactions = Tools % of Take Home Transactions
Take Home
The “% of Guests Buying Take Home” number indicates the percentage of your guests that leave the salon
purchasing Take Home. This is a very important number when it comes to “being a category of one” in the beauty industry.
To Calculate % Buying Take Home:
Total Guests(transactions) Buying ÷ Total Guests(transactions) = % Buying
CHAPTER 4
Month
Total Guest Buying (#) Total Guests (#)
% Buying Take Home
35
100
35%
Month
Total Tool Transactions(#)
Total Take Home Transactions (#) Tool % of Take Home
2
35
6%
66


ACTION ITEMS
In order to ensure success in this chapter, complete the worksheets in the previous chapter and share them with someone of importance in your life. This will help hold you accountable and move one step closer to your goals.
Tap on the following link to take you back.
Tool Bar Benchmark
Wash House Benchmark
CHAPTER 4
67
Reservation Desk Benchmark
Color Bar Benchmark
Profit Generator Service Cycle
Take Home Benchmark
Profit Generator
Styling Station Benchmark


REVIEW
Interactive 4.1 Chapter Review
CHAPTER 4
Tap and test your comprehension of the chapter
68


FUN & GAMES
Interactive 4.2 Puzzle Interactive 4.3 Word Search
Interactive 4.4 Hangman Interactive 4.5 Puzzle
CHAPTER 4
69


RESERVATION
DESK PROFIT CENTER
Where the customer experience begins and ends
CHAPTER 5




CHAPTER 5
RESERVATION DESK PROFIT CENTER
Where the customer experience begins and ends
The reservation desk is one of the most important areas of the entire business. It’s a perfect opportunity to introduce guests to new services, products and salon offerings. Learn how to use this area as a vehicle to increase guest traffic, frequency of visit, and average service ticket. Through efficient systems and consistent behaviors, at the Reservation Desk, you have the power to significantly drive revenues and have a positive impact the financial health of your business.
Movie 5.1 Reservation Desk
72


CHAPTER 5
RESERVATION DESK PROFIT CENTER
Through efficient systems and consistent behaviors, the Reservation Desk has the power to significantly drive revenues and have a positive impact, on the financial health of your business. This chapter will show you what a customer should see, hear, and feel at the Reservation Desk. We will also show you how much additional money you can produce because of your efforts in this profit center.
Growing Sales: It’s also the perfect opportunity to introduce guests to new services, products, and salon offerings. This profit center can be used as a vehicle to increase guest traffic, frequency of visit, and average service ticket.
Managing Guest Expectations: The reservation desk is one of the most important areas of the entire business. This position represents the face of the salon. It’s the so important first and last contact and impression guests have when they visit your salon.
Growth Roadblocks: Missed opportunities by not introducing guests to additional salon offerings, specials, and promotions, as well as inefficient booking (booking too much time) are just a
few of the major road blocks to growth at the
Reservation Desk.
73


CSHECATPITOENR 25
What could you accomplish from your dream board with an additional–
$
15,000
in Reservation Desk revenue per year? 74


CHAPTER 5
EXPERIENCE - SEE, HEAR, FEEL
SEE
• clean and clutter-free waiting area and desk • promotional signage
• professionally dressed staff
• desk product displays that encourage buying • business cards
• menus
• sampling
• signage with social media sites
HEAR
• pleasant greeting
• professional conversation from desk staff • appropriate music
• information relevant to today’s visit
• other service opportunities
• any daily promotions
• offer of refreshments
• offer of salon tour
• product knowledge, closing retail sales
• pre-booking
75


FEEL
• welcomed
• comfortable • special
• important
DIALOG
78% of consumers have
bailed on a transaction or not made
an intended purchase because of a poor
service experience.
Source: American Express Survey, 2011
Rub it together in your hands and apply it to the ends to smooth out any strays or frizz. This should last you a very long time.”
• Pre-Book: “I’m going to need to see you again in 5 weeks to maintain your cut and color. Let’s go ahead and get that on the books today so we can work around your schedule and get the time and day that works best for you.”
• Referral: “I’m building my clientele and would love for you to refer me to your friends. Our referral program is “Send 3 Get 1 FREE.” Here are some of my business cards. Write your name on the back of each one. Give them to your friends. For every 3 people that you send me, I’ll give you a FREE haircut.”
• Thank: “Thank you so much for coming in today. I always love our time together. Can’t wait to see you next time!”
CHAPTER 5
• Welcome: “Hi, welcome to XYZ Salon! We’re so happy you’re here today!”
• Specials: “Here is our Beauty Bonus menu. Take a look, and let me know if there are any services that interest you.”
• Offer Beverage: “What can I get you drink today? We have coffee, tea, and water.”
• Pull Products & Recap: “This is the shampoo and conditioner we talked about. Remember, for your hair, you don’t need to shampoo every day. Two or three times a week is okay. And this is the Super Skinny Styling Serum. Apply this to your hair while it’s wet. Remember, just use about a quarter size and comb it through to distribute it all over. And here is the gloss drop. Use this at the very end. Just use one pump–a little goes a long way.
• Follow Up: “Hi Mary, this is Jane from XYZ Salon. I’m just calling to check in with you to see how your new hair color is doing. Are you happy with the color? Is there anything I can do for you?” If unhappy: “I’m so sorry you’re not happy with it. When can you come back in? I want to make it right it for you.”
Interactive 5.1 Ideal Experience
Tap and identify the ideal Reservation Desk experience.
76


CHAPTER 5
STEPS TO SUCCESS
PRE Service
1. Welcome: Every guest should be welcomed into the salon with a
warm and friendly greeting.
2. Specials: Each guest should be made aware of any current salon promotions. This is a great upgrade opportunity.


3. Offer Beverage: To enhance the customer experience, offer each
guest a beverage.

POST Service
4. Pull Products & Recap: At the end of the service, walk your guests up to the Take Home area, pull the products that you used and have already educated them on, and do a quick recap. "This is the shampoo we talked about. Remember, for your hair, you don't need to shampoo every day. Two or three times a week is okay. And this is the Super Skinny Styling Serum. Apply this to your hair while it’s wet. Remember, just use about a quarter size and comb it through to distribute it all over. And here is the gloss drop. Use this at the very end. Just use one pump–a little goes a long way. Rub it together in your hands and apply it to the ends to smooth out any strays. This should last you a very long time.”
Follow Up Welcome
Thank
Referral
8 1 72
63 5 4
Specials
Offer Beverage
Pre-Book
Pull Products & Recap
77


5. Pre-book: Let your guest know when she will need to come back to properly maintain her cut/color/style. Schedule that next appointment now.

6. Referral: Tell your guest about your referral program and how it will benefit her. Let her know you are building your clientele and would appreciate her help. Hand her a few of your business cards and ask her to refer you to her friends and family.

7. Thank: Always give a sincere thank you. Make sure your guest knows that you really appreciate her business and look forward to seeing her again.

8. Follow Up: Always follow up wth your guests, either by email or personal phone call. It’s a great way to show that you care and to catch any potential problems that may need to be fixed. Most guests, especially new guests will not let you know if they are unhappy, they will just go somewhere else to have it fixed. Following up allows you to initiate that feedback. Remember, you want bad feedback too. It’s the only way to resolve any issues.
Movie 5.2 Reservation Desk Tips
CHAPTER 5
78


CHAPTER 5
SHOW ME THE MONEY
150 X6
number of active guests
visits per year
total guest visits per year
Goal example: 60% prebook
Try to get 60% of your guests to book their next appointment before they leave the salon. That’s just 6 out of every 10 of your guests. Pre-booking is the best and easiest way to increase frequency of visit (visits per year). Increasing frequency of visit has a major impact on growing your business.
Interactive 5.2 What would you do?
Tap and answer the question.
A stylist whose guests come in every 8 weeks
# =
900
$50 45,000
1508
average service ticket
X
=$
number of
annual service revenue
A stylist whose guests come in every 6 weeks
X
active guests visits per year
#
total guest visits per year
1,200
=
X
50 = 60,000
$
average service ticket
annual service revenue
$
79


ACTION ITEMS
In order to ensure success in this chapter, complete the worksheets in the previous chapter and share them with someone of importance in your life. This will help hold you accountable and move one step closer to your goals.
Tap on the following link to take you back to the worksheet.
Ideal Reservation Desk Experience
What Would You Do Worksheet
Role-Play
CHAPTER 5
80
Show me the Money
Reservation Desk Benchmark
Experience See, Hear, Feel
Reservation Desk Profit Center
Dialog
Steps to Success


REVIEW
Interactive 5.3 Chapter Review
CHAPTER 5
Tap and test your comprehension of the chapter
81


FUN & GAMES
Interactive 5.4 Puzzle Interactive 5.5 Hangman
Interactive 5.6 Word Search Interactive 5.7 Puzzle
CHAPTER 5
82


STYLING
STATION PROFIT CENTER
A place to share your knowledge
CHAPTER 6




CHAPTER 6
STYLING STATION PROFIT CENTER
A place to share your knowledge
Your stylist station is not just a chair for cutting and styling your guests' hair—it’s a place to share knowledge that will inspire your guest to make a Take Home purchase and book their next appointment. Every guest who sits in your chair is a captive audience. Use that time as an opportunity to explain how to use the products, tools, and techniques to create their salon look and open a dialogue about Take Home options.
Movie 6.1 Styling Station
85


CHAPTER 6
STYLING STATION PROFIT CENTER
Your styling station is not just a chair for cutting and styling your guests' hair—it’s a place to share knowledge that will inspire your guest to buy more services and make a Take Home purchase and book their next appointment. This chapter will show you what a customer should see, hear and feel at the Styling Station. We will also show you how much additional money you can produce because of your efforts in this profit center.
Growing Sales: Every guest who sits in your chair is a captive audience. Use that time as an opportunity to explain how to use the products, tools and techniques to create their salon look and open a dialogue about Take Home options.
Managing Guest Expectations: This is your opportunity to have a thorough service consultation. Take the time to really listen to your guest’s wants and needs. Use pictures for clarification. Repeat what the guest has told you to instill confidence and trust.
Growth Roadblocks: Missing opportunities by not introducing guests to additional salon offerings and taking too much time to complete the service are the two major road blocks to growth at
the Styling Station. Time is a major resource in
the salon business. Make sure you work on your timing so that you are fairly compensated for your time. Practice, practice, practice until your timing is where it needs to be.
86


$
CHAPTER 6
What could you accomplish from your dream board with an additional–
9,000
in Styling Station revenue per year?
87


CHAPTER 6
EXPERIENCE - SEE, HEAR, FEEL
SEE
• clean and clutter-free
• professionally/stylishly dressed stylist
• no personal pics
• style menu
• treatment menu
• color bar menu
• window clings of promotion products/services
HEAR
• professional conversations
• thorough consultation
• the right questions
• questions and conversation about the guest • what products are being used
• advice/education on how/when to use products and tools at home • pre-book recommendation
• compliments to guests
88


FEEL
• comfortable • understood • safe
• confident
• special
• important
• fabulous when done
DIALOG
Price is not the main reason
customers leave. It is due to the overall
poor quality of customer experience. Source: Accenture global customer satisfaction report 2008
• Upgrade: Based this on what you learned in the consultation. “Because you said x, I’m going to recommend y” “Because you said you would like your hair to be more shiny, I’m going to recommend we do a Marula Oil treatment today. This will give you more shine, reduce split ends, and protect your hair from further damage.”
• Service: “Tell me about yourself. Where do you work? Are you originally from this area?”
• Style with Knowledge: “When you use this at home, use about a quarter-sized amount, rub it together in your hands and then apply it to your hair at the ends and work you way up. Then be sure to comb it through really well.”
Interactive 6.1 Ideal Experience
Tap and identify the ideal Styling Station experience.
CHAPTER 6
• Greet: “Hi Mary! I’m so happy you’re here today. Let’s go talk about what we’re going to do with your hair!” If new guest: “Hi Mary, I’m Jane. It’s so nice to meet you. I’m excited about doing your hair today!”
• Tour: “Let me give you a tour of our salon.” Proceed to each area of the salon, letting the guest know what happens in each area and what she can expect. Remember to point out the restroom and any hidden rooms, such as a wax room.
• Consult: “Let’s talk about your hair and what your expectations are for your visit today.”
89


CHAPTER 6
STEPS TO SUCCESS
1. Greet: Always greet your guest with a warm and friendly greeting that shows how happy you are to see her. SMILE–always! Say, “I’m so happy you’re here today!” Stick out your hand and give her a nice firm handshake or give a hug if it’s a regular guest and hugs are in order. For a new guest, introduce yourself and give a her handshake. Say, “It’s so nice to meet you. I’m excited about doing your hair today!”

Style with Knowledge
61
4
Greet
2. Tour: Give all new guests a tour of the salon. Walk them through
each area and point out which service opportunities are available
in each area. Be sure to show them where they can find the
restroom. This is very important to do, even if your salon is very
small. Tours should also be done for regular guests if your salon has
implemented a new service area or system. 3
Service
5
2
Tour
3. Consult: Your service consultation may be the most important part of the service. This is where you have the opportunity to find out exactly what the guest is expecting from today’s visit. Ask clarifying questions. Look through pictures. Repeat what you hear from the guest. Discuss what you will do and get acceptance before starting. A great consultation is the best way to avoid any potential problems. Do it every time, even with regular guests.

Upgrade
Consult
90


4. Upgrade: This is your opportunity to sell additional services and a great way to increase your average ticket and make more money. Based on your consultation, what additional services would help the guest get what she is looking for today? Use the “Because You Said” approach here. “Because you said you would like your hair to be more shiny, I’m going to recommend we do a Marula Oil treatment today. This will give you more shine, reduce split ends, and protect your hair from further damage.”

5. Service: This is where you do the actual Styling Station service. Be sure to have professional conversations throughout the service. Talk more about the guest, than about yourself.

6. Style with Knowledge: Educate your guests as you style their hair. Let them know what products you are using, why you are using those products, and how the guest can use them at home. Say, “When you use this at home...” and proceed to explain how to use that particular product at home. This gets them thinking about purchasing the product so they can use it at home.
Movie 6.2 Because You Say w/ Tracy & Anthony Quatropanni
CHAPTER 6
91


CHAPTER 6
SHOW ME THE MONEY
Goal example: $10 Average Service Ticket Increase
Average Service Ticket is the amount (on average) that each of your guests spend in services each visit. Find out what your average service ticket is now and set a goal to increase it by $10. If you’re at $50 set a goal to get to $60.
Interactive 6.2 What would you do?
Tap and answer the question.
Consider a stylist with a $50 average service ticket
#
900
total annual visits
$
X 50 =45,000 annual service
average service ticket
$
#900 $
revenue
Increase it by just $10
total annual visits
X 60 =$54,000
average service ticket
annual service revenue
92


ACTION ITEMS
In order to ensure success in this chapter, complete the worksheets in the previous chapter and share them with someone of importance in your life. This will help hold you accountable and move one step closer to your goals.
Tap on the following link to take you back to the worksheet.
Ideal Styling Station Experience
What Would You Do Worksheet
Role-Play
CHAPTER 6
93
Show me the Money
Styling Station Benchmark
Experience See, Hear, Feel
Profit Generator
Dialog
Steps to Success


REVIEW
Interactive 6.3 Chapter Review
CHAPTER 6
Tap and test your comprehension of the chapter
94


FUN & GAMES
Interactive 6.4 Hangman Interactive 6.5 Puzzle
Interactive 6.6 Word Search Interactive 6.7 Puzzle
CHAPTER 6
95


COLOR
BAR PROFIT CENTER
Celebrate professional hair color, highlights your professional expertise
CHAPTER 7




CHAPTER 7
COLOR BAR PROFIT CENTER
Celebrate professional hair color and highlight your professional expertise
Celebrate your professional expertise with the Color Bar—an area dedicated to the merchandising, mixing and processing of hair color–that encourages your guests to see hair color as a salon-only service. Devoting an area in your salon for the Color Bar will demonstrate to your guests the professional knowledge needed to create custom color formulations and achieve results they can’t get at home.
Movie 7.1 Color Bar
98


CHAPTER 7
COLOR BAR PROFIT CENTER
Celebrate your professional expertise with the Color Bar—an area dedicated to the merchandising, mixing, and processing of hair color–that encourages your guests to see hair color as a salon-only service. In this chapter will show you what a customer should see, hear, and feel at the Color Bar. We will also show you how much additional money you can produce because of your efforts in this profit center.
Growing Sales: During your consultation at the styling station, always take the time to talk to your guests about color. Even if they are not scheduled for a color service, you should have a color conversation. Get them thinking about color. If they don’t get it today, they may schedule it for next time.
Managing Guest Expectations: Devoting an area in your salon for the Color Bar will demonstrate to your guests the professional knowledge needed to create custom color formulations and achieve results they can’t get at home. A thorough color consultation, using pictures, will help put your guest
at ease and give you confidence that you will completely meet your guest’s expectations.
Growth Roadblocks: Missed opportunities such as not having a color conversation with every guest, taking too much time to complete the service, and product waste are the three
major road blocks to growth at the Color Bar. Every
ounce of color adds costs to your service. Over-mixing, leftover color, and dumping color down the drain are all examples of product waste and will cut into the profit of your color service. A precision colorist will learn how to mix up just the right amount to color for each guest so that there is no waste.
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